The entrepreneurial layer improves the strategic posture of firm to deliver competitive advantage. The pro activeness develops firm’s willingness and ability to sense and anticipate new developments earlier than competitions imparting a “first mover” advantage over reactively identifying development and trends. This gives the firm a competitive edge and improves market performance by increasing market share.

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 co