When the Ground Shifts: Market and Technological Turbulence and Competitive Intensity as Boundary Conditions of the EMO–Performance Link

Abstract

Entrepreneurial Marketing Orientation (EMO) has long been acknowledged as a critical factor in the success of small firms, yet its value may vary depending on the environment in which firms operate. Building on the perspectives of dynamic capabilities and effectuation, this study explores how market turbulence, technological turbulence, and competitive intensity influence the relationship between EMO and firm performance among tourism SMEs in Pakistan. Drawing on survey evidence from 362 firms and employing structural equation modeling, the findings demonstrate that EMO strongly and positively influences performance, highlighting its importance in resource-constrained and uncertain contexts. However, the moderating effects of environmental conditions are not uniform. Market turbulence did not alter the EMO–performance association, suggesting that changing customer needs alone may not reshape the returns of entrepreneurial marketing. In contrast, technological turbulence and competitive intensity were found to amplify EMO’s benefits. SMEs that operate in environments characterized by rapid technological shifts or intense competition achieved stronger performance when adopting EMO, as these firms are better able to innovate, adapt, and seize emerging opportunities. The study contributes to entrepreneurial marketing research by clarifying when EMO is most advantageous and by integrating contingency and dynamic capability logics. Practically, the results encourage SMEs to strengthen their entrepreneurial marketing practices, especially under conditions of technological disruption and heightened rivalry. For policymakers, the findings suggest that supporting SMEs’ technological adoption and competitive responsiveness may enhance the resilience and competitiveness of the tourism sector.