Entrepreneurial Orientation and Startup Growth: Moderating Role of Market Turbulence

Abstract

Entrepreneurial orientation has been widely acknowledged as a key determinant of startup success; however, its effectiveness varies across different environmental conditions. This study investigates the relationship between entrepreneurial orientation and startup growth, with market turbulence serving as a moderating variable. Drawing on data collected from 260 startup founders and managers; the study employs Structural Equation Modeling (SEM) using to test the proposed relationships. The findings reveal that entrepreneurial orientation significantly and positively influences startup growth. Moreover, market turbulence significantly moderates this relationship, such that the positive impact of entrepreneurial orientation on growth is stronger under conditions of high market turbulence. These results suggest that entrepreneurial behaviors such as innovativeness, proactiveness, and risk-taking become more valuable when markets are dynamic and unpredictable. The study contributes to entrepreneurship literature by highlighting the contingent role of environmental factors in shaping entrepreneurial outcomes. Practically, the findings emphasize that startups operating in turbulent markets should adopt strong entrepreneurial orientations to exploit emerging opportunities and sustain growth. The study concludes that entrepreneurial orientation is not universally effective but becomes a critical strategic asset under conditions of high market uncertainty.