ABSTRACT:
This article provides empirical evidence for the relationship between the market orientation, entrepreneurial orientation, and collaboration of external actors in the processes of incremental and radical innovations in rural enterprises. The research tested two sets of assumptions: first, the relation between contributions of strategic orientation and innovation processes; and second, collaborations of external stakeholders in the implementation of innovation processes. Data were collected from 208 rural enterprises and analyzed with the use of techniques of partial least squares structural equation modeling. Results showed that the market orientation contributes to the development of incremental innovation, and that the entrepreneurial orientation contributes to the implementation of the incremental and radical innovations. Specific agents (buyers, suppliers of goods and services, consultants, and others producers), collaborate positively in implementing incremental innovation; however, generic agents do not. The generic agents (universities and specialized public organizations) are the ones that most intervene in radical innovations. The use of consistent theory in the areas of strategy, marketing and management in identifying that some of their causal relationships are confirmed for rural businesses unlike others, due to the structure of the market and the products produced by them.
Key words:
market orientation; entrepreneurial orientation; incremental innovation; radical innovation; specific agents; generic agents; rural firms.
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