Zelimir W. Todorovic, Jun Ma Todorovic and Jiani Fan
Organizations of all sizes can and do fail. Building upon theoretical basis of Market and Entrepreneurial Orientations this paper posits to develop greater understanding of why some ongoing entities fail. To shed more light on the above issue, a focus group approach was utilized with a total of 43 undergraduate and 19 graduate student groups, engaging a total of 223 undergraduate and 81 graduate students. We observed a rather consistent failure of management to maintain simultaneous balance between market and entrepreneurial orientations, in favor of profit maximization. In response, a Managerial Diffusion Balance Model was developed that visually presents this progression and promotes further conceptual understanding of the processes involved.