Market orientation and innovation (original) (raw)
Related papers
The influence of market orientation on innovation strategies
Journal of Service Theory and Practice, 2016
Purpose – The purpose of this paper is to examine the effects of market orientation on exploratory and exploitative innovation, and the moderating effects of family ownership on these relationships. Design/methodology/approach – This study utilizes multi-group path analysis and confirmatory factor analysis in LISREL on data from 228 firms in the Australian service sector. Findings – This study establishes that both customer and competitor innovation are positively related to exploitative and exploratory innovation. However, customer orientation does not lead to significantly stronger effects on exploitative innovation than on exploratory innovation, and competitor orientation does not lead to significantly stronger effects on exploratory innovation than on exploitative innovation. In addition, the study found that the relationship between customer orientation and exploratory innovation was stronger for family firms, while the relationships between competitor orientation and both exp...
The Effect of Market Orientation on Product Innovation
Journal of the Academy of Marketing Science, 2000
Numerous scholars have debated whether marketing fosters or stifles innovation. The discussions, however, have been inconclusive due to limited empirical evidence. The authors investigate the relationship between two focal constructs in the debate: market orientation and product innovation. On the basis of a sample of U.S. manufacturing companies, the authors'analysis shows that product innovation varies with market orientation. Specifically, (1) customer orientation increases the introduction of newto-the-world products and reduces the launching of metoo products, (2) competitor orientation increases the introduction of me-too products and reduces the launching of line extensions and new-to-the-world products, and (3) interfunctional coordination increases the launching of line extensions and reduces the introduction of me-too products. Marketing and innovation are viewed, now more than ever, as stimuli to economic growth and major components of competitive advantage. No longer concerned simply with variables that affect marketing and innovation, research has recently turned to the nature of the relationship between the two functions. A key question in this new focus is whether market orientation promotes or restrains product innovation.
Objective-This paper seeks to provide new insights into the relationship between market orientation and innovation performance by empirically testing the direct effect of market orientation (MO) on innovation performance and exploring the effects of moderation in marketing constructs, namely customer relationship management (CRM) and knowledge management, in these relationships. Methodology/Technique-This study adopts a cross-sectional research design. Data is collected from export-oriented manufacturing small and medium enterprises (SMEs) in Indonesia. The data is analysed using PLS structural equation modeling. Findings-Our findings reveal that MO is a significant driver of innovation performance. The results further confirm that CRM plays a moderating role in the interrelation between market orientation and innovation performance. In addition, market orientation and knowledge management have a positive effect on innovation performance. Novelty-These results prove that the interaction of CRM and knowledge management with market orientation, each have a significant impact on innovation performance. Market orientation behavior more effectively achieves innovation performance in manufacturing SMEs if the MO is interactive with CRM and knowledge management. This research adds new insights to the existing literature and has implications for future research and marketing practices in Indonesia, giving implications for marketing managers and export researchers about managing market orientation, CRM development, and knowledge management. Type of Paper: Empirical
An Integrative Model of Market Orientation on Innovation Performance
GATR Journal of Management and Marketing Review
Objective –This paper seeks to provide new insights into the relationship between market orientation and innovation performance by empirically testing the direct effect of market orientation (MO) on innovation performance and exploring the effects of moderation in marketing constructs, namely customer relationship management (CRM) and knowledge management, in these relationships. Methodology/Technique – This study adopts a cross-sectional research design. Data is collected from export-oriented manufacturing small and medium enterprises (SMEs) in Indonesia. The data is analysed using PLS structural equation modeling. Findings – Our findings reveal that MO is a significant driver of innovation performance. The results further confirm that CRM plays a moderating role in the interrelation between market orientation and innovation performance. In addition, market orientation and knowledge management have a positive effect on innovation performance. Novelty – These results prove that the ...
Examining the Effect of Market Orientation on Innovativeness
Journal of Marketing Management, 2006
For the past decade innovativeness, as opposed to innovation, has received considerable attention in the academic literature as well as the corporate arena because it is considered to promote a competitive advantage. This study examines the link between innovativeness and performance of SMEs in the Swiss watch industry, in terms of customer orientation, competition orientation and inter-functional coordination. It uses performance measures such as market share, percentage of new product sales to total sales and return on investment (ROI), and has developed a new research scale of innovativeness. The results show that customer orientation has a positive effect on performance as well as the level of innovativeness in each company. There are also strategic implications for CEOs and managers as far as the methodological limitations and future research directions are concerned.
The effect of market orientation on innovation speed and new product performance
Journal of Business & Industrial Marketing, 2010
PurposeIt has been argued that innovation speed has been inappropriately absent in models of market orientation. The present study seeks to provide new insights into whether and how market orientation's three main components: intelligence generation, intelligence dissemination, and responsiveness affect innovation speed and new product performance, and about the mediating role of innovation speed.Design/methodology/approachData were collected from a sample of 247 firms in a variety of manufacturing industries. A mail survey was developed to collect the data.FindingsThe results indicate that intelligence generation has an indirect positive effect on innovation speed via intelligence dissemination and responsiveness. Intelligence dissemination influences innovation speed positively, both directly and indirectly through responsiveness. Findings report a curvilinear (J‐shaped) relationship between responsiveness and innovation speed. With regard to the effect of the market orientati...
Market orientation and performance in service firms: role of innovation
Journal of Services Marketing, 2003
A cornerstone in the market orientation literature is the relationship between market orientation and performance. However, knowledge is still inadequate about the perfo rmance of the most market-oriented firms, because few empirical studies have applied objective performance measures. The market orientation model was tested by using a multi-method approach to measure performance. Two objective performance measures were applied; relative productivity, calculated by data envelopment analysis (DEA) and return on assets (ROA), and one subjective performance measure; perceived profitability compared to key competitors. Based on empirical data from the hotel industry, the results indicate that market orientation has only a modest effect on relative productivity and no effect on return on assets.
IBT journal of business studies, 2018
Innovation strategy and market orientation is vital for firm performance and competitive advantage. The survival of organizations dependent on its innovation strategies regarding the product, process and technological development and market orientation in order to increase firm performance. Innovation strategies. Market orientation helps in giving direction to the organization by providing superior value to the customers. The market orientation from organization perspective makes the customer as the focal point that influence on its performance. These main objectives of this study are; to examine the direct relationship between market orientation and firm performance and examine the indirect relationship of innovation strategies (mediation) between market orientation and firm performance. Using quantitative technique, this study collected questionnaires from 240 employees and managers working in corporate excellence awarded organizations. The data was analyzed in SPSS and PLS-SEM for analysis. The results indicated that market orientation has direct relationship with firm performance. The results also confirmed the indirect effect of innovation strategies between market orientation and firm performance. This indirect effect indicated that innovation strategies partially mediate between market orientation and firm performance. The finding of this study suggest that the corporate sector top managers and policy makers should adopt and implement the innovation strategy for the long term success and gain superior performance.
2014
The current study was an effort to test the effects of market orientation and strategic human resources practices (SHR) over organizational level innovation. In an era where companies need to implement key strategic human resources and be market oriented, we aimed at testing the effects of these two important perspectives with data drawn collected from the IT industry (N = 174). Results showed that only participation in decision making from SHR practices and customer orientation from market orientation predicted organizational level innovation positively. Moreover, our findings also emphasized that the relationship between SHR practices and organizational level innovation were more pronounced for companies which had high degrees of market orientation. Our findings speak to significant managerial implications and emphasize the need to include employees in decision making processes. Further suggestions, limitations and conclusions are also discussed