Does Innovation Orientation Mediate the Link Between Market Orientation and Business Performance? A Study Based on Data from Ethiopian Large Scale Manufacturing Firms (original) (raw)

Therelationship between strategic orientation and business performance has been researched for several years. Earlier studies in the field of strategic management have focused either on the relationship or on theimpact of market orientation with/on business performances. Yet, another group of study has focused on identifying any intervening factors in the relationship between these organizational variables. However, such studies have been conducted in the most affluent countries leaving a gap of generalizability for those firms in the markets of developing nations mainly Sub-Saharan African countries. Thus, the current study has tried to investigate the mediating role of innovation orientation in the link between market orientation and business performance. Hoping to fill the above research gap, primary data was collected from a sample of 310 Large-scale Manufacturing Firms in Ethiopia. Using Amos 21.0 structural equation modeling, the result revealed that there is a partial mediation role of innovation orientation in the market orientation-performance link. Moreover, the result also revealed that in addition to its partial mediating effect, innovation orientation does have a direct significant impact on business performance. Managerial implications, limitations, and aninvitation for further study have also included.

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