The risk-taking dimension develops firm’s willingness and ability to commit resources to projects whose outcome is uncertain. If strategies are sound, the firm has strong chances to reap higher returns inherent in risky initiatives leading to higher performance.

Based on the above discussions, the following hypotheses is formulated:

H6- Entrepreneurial Orientation has a positive impact on competitive advantage

Moderation effects of entrepreneurial orientation on the relationship between dynamic marketing capabilities and competitive advantage

EO helps firms to survive and generate value for firms and their owners. In the competitive and dynamic environment firms possessing high EO develop new market orientations and business platforms based on new opportunities in the market. EO creates a mindset for acquiring or mobilizing right resources and a firm properly endowed with dynamic marketing capabilities guides the evolution of a firm`s resource configuration by leveraging on extant marketing capabilities and linking it to the newly shaped market orientation. This leads to heightened competitive advantage. (Teece et al. 1997, Winter 2000).

Entrepreneurial orientation moderates the relationship between DMC and competitive advantage by providing context and mechanism to develop new forms of competitive advantage. Certain innovative responses are required when time to market and timing are critical, the rate of technological change is rapid, and the nature of future competition and markets is difficult to determine. Firms with higher entrepreneurial orientation will have stronger relationship between their dynamic marketing capabilities and competitive advantage. Based on the above discussions the following hypotheses is proposed:

H7: Entrepreneurial Orientation moderates the relationship between dynamic marketing capabilities (DMC) i.e (the interaction effect of MO and MC) and firm competitive advantage