: Apothecary is a highly regulated and competitive industry due to less differentiation and high density in certain areas. Interestingly, the performance of apothecaries is heterogeneous; and based on market orientation perspective we argue that the condition exists due to different level on responding competitors\u27 actions as well as customers\u27 needs. Further, we argue that managers\u27 entrepreneurial orientation can strengthen these relationships. The mechanism of how can apothecaries develop their responsiveness to competitors and customers also is investigated. We distributed questionnaires among apopthecary managers in Surabaya and generated 131 responses. By using PLS, the results indicate that responsiveness to competitors positively influence on their performance, while responsiveness to customers is not. The moderating effect of entrepreneurial orientation is also not confirmed. Responsiveness to competitors is highly determined by cognitive and affective organizational system, while responsiveness to customers mainly determined by affective organizational system. Managerial and academic implications are further discussed in this paper
