Startup Performance: The Interplay of Market Orientation and Network
Euna Lee, Yunsoo Shim, Jounghae Seo

Abstract
This research identified the potential of improving market opportunities inherent in the network, to study the impact of market orientation on the performance of startup companies. The research was conducted to clarify the relationship between market orientation, firm performance, and networks. It also attempted to identify the role of each aspect. An empirical study was performed on 135 startup companies. PLS-based SEM was used to evaluate the fit of the research model. First, the results of the study confirmed that the market orientation of startup companies had a positive impact on firm performance. Both the Narver & Slater (1990) scale and Kohli & Jaworski (1990) scale, which is used as a representative measure of market orientation, appeared to be positively related to firm performance, making it suitable for measuring the performance of startup companies. Second, it was shown that the network had a negative moderating effect on market orientation and firm performance of startup companies. The research found that as the market orientation increased, the firm performance also increased. But when the network grew stronger, the firm performance became weak. The effect of a negative moderating effect was only shown in the Narver & Slater (1990) scale. This study could provide some implications for future market orientation-related studies on startups, and for entrepreneurs who actually wish to start a new business.

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