The Effect of Market Orientation on Firm Innovation among Small and Medium Enterprises in Turkey (original) (raw)
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Dumlupınar Üniversitesi sosyal bilimler dergisi, 2014
Innovation has been long discussed to be an important element for sustaining a competitive advantage. The relationship between market orientation and innovation has not been argued enough in literature. Innovation can be defined as firms gain position through an introduction of new technologies, production processes, and products in the market place. According to the Schumpeterian view (1934) to take a competitive advantage, firms should link between marketing and innovation orientation. However, Drucker (1954) defines that the two basic elements, of the firms' are marketing and innovation, so that innovation concept fits on the centrality of market orientation. The purpose of this study is to investigate the impact of innovation on a firm's performance in the context of product and marketing innovation among over 10.000 firms, the data of which were provided by the Turkish Statistical Institute. It examines the relation between firm innovation and financial performance as a firm performance criterion. Structural Equation Modeling has used to analyze the possibility of a marketing/innovation effect on performance model, as the basis of the Community Innovation Statistics questionnaire survey.
Market Orientation and Innovation performance An Investigation in small firms at Sharjah Emirate
TIJ's Research Journal of Science & IT Management - RJSITM, 2012
This study examines and evaluates the extent of relationships between marketing orientation and innovation performance. Three dimensions of marketing orientation namely1. Collection of marketing data 2.Dissemination of this data across functions within the organization and 3.Responsiveness towards making decisions based on collected data, are measured. The data was collected by using structured questionnaires distributed to and collected from executive managers of a sample of three types of firms in Sharjah. As many as 20 organizations were identified in each category – durables, FMCG and services (hotels). Statistical tools such as factor analysis, reliability test, and correlation analysis were utilized to test the relationship between marketing orientation and performance innovativeness. Further, chi square association test and coefficient of contingency were applied to explore the extent to which demographic profile of the organization influences this relationship. The results i...
Management Science Letters
The aim of this study was to determine whether the innovativeness variable can mediate the influence between market orientation and marketing performance in the culinary industry in West Java Province, Indonesia. More specifically, this study analyzes the relationship among market orientation, innovation and marketing performance in the single mediation model by placing mediation variable of innovation. The samples involved a total of 209 culinary industries under the auspices of the agency of cooperative and SME services. By using a simple linear regression analysis with SPSS and AMOS v. 23 we understand that innovativeness had the ability to mediate the influence between market orientation and marketing performance. Likewise, market orientation has a positive influence on performance. The implication of this research is that entrepreneurs can improve their innovation capabilities to improve the SME performance. This study recommends that government policies should encourage innovation in SMEs and encourage SME managers to pay more attention and manage innovations to improve their operational performance.
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
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.
International Journal of Science and Engineering Invention
This study aims to: (1) determine the effect of market orientation on competitive advantage; (2) to know the effect of innovation on competitive advantage; (3) to know the influence of market orientation and product innovation together to competitive advantage; (4) the effect of market orientation on the performance of SMEs, (5) to know the effect of product innovation on the performance of SMEs, (6) to know the effect of competitive advantage on SMEs performance, and (7) to know the effect of market orientation, product innovation, and competitive advantage together SMEs. This research uses an explorative design that aims to conduct a search and reveal the factors that can be estimated as the cause of the occurrence of a condition that is not yet known the cause and the mechanism.The population in this study is the SMEs in Batam city with the type of production business with a population of 153 SMEs. The number of samples was determined using a saturated sample technique in which t...
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 ...
International Review of Management and Marketing, 2017
This study aims to empirically demonstrate the relationship of market orientation, learning orientation on innovation and business performance within the scope of the small and medium enterprises (SMEs). Besides, this research also explaines the importance of company’s innovation as a mediating relation to improve business performance. The samples of this study were 155 managers or owners of Meubeller SMEs in the Region of Karisidenan Surakarta. The sampling technique used in this research was purposive sampling. The basic consideration of this research was the experience of the SMEs Meubeller (either the manager or owner) in managing their businesses. The hypothesis testing results showed that market orientation gave positive effect on business performance and innovation of the company. Orientation learning gave positive effect on business performance and innovation of the company. Company’s innovation infl uenced business performance.
2013
Innovation has been long discussed to be an important element for sustaining a competitive advantage. The relationship between market orientation and innovation has not been argued enough in literature. Innovation can be defined as firms gain position through an introduction of new technologies, production processes, and products in the market place. According to the Schumpeterian view (1934) to take a competitive advantage, firms should link between marketing and innovation orientation. However, Drucker (1954) defines that the two basic elements, of the firms' are marketing and innovation, so that innovation concept fits on the centrality of market orientation. The purpose of this study is to investigate the impact of innovation on a firm's performance in the context of product and marketing innovation among over 10.000 firms, the data of which were provided by the Turkish Statistical Institute. It examines the relation between firm innovation and financial performance as a firm performance criterion. Structural Equation Modeling has used to analyze the possibility of a marketing/innovation effect on performance model, as the basis of the Community Innovation Statistics questionnaire survey. Equation Model (SEM) JEL Classification: M10, M20, M30 PAZARLAMA YÖNLÜLÜK İLE INOVASYON ARASINDAKİ İLİŞKİ BAŞARIYI GETİRİR Mİ? TÜRKİYE'DE SEM TEMELLİ BİR ARAŞTIRMA Özet İnovasyon, rekabetin avantajının sürdürülmesinde önemli bir eleman olarak uzun süredir tartışılmaktadır. Pazarlama odaklılık ile inovasyon arasındaki ilişki literatürde yeterince tartışılmamıştır. İnovasyon firmaların yeni teknolojiler, üretim süreçleri ve ürünler yoluyla pazarda bir pozisyon elde etmeleri olarak tanımlanabilir. Schumpeteryan bakış açısına (1934) göre bir rekabet avantajı elde etmek, firmaların pazarlama ile inovasyon odaklılık arasında bir bağ oluşturmasıyla olmaktadır. Ancak, Drucker (1954) firmaların iki temel unsurunu pazarlama
Marketing orientation vs. innovativeness of SMEs of the Podlaskie Province
This research aims to examine the impact of marketing orientation on the innovation level among Small and Medium Size (SMEs) from Podlaskie Province. A survey utilizing a questionnaire was conducted among 137 companies in the Podlaskie Voivodeship. Altogether 3 hypotheses concerning marketing orientation and innovativeness level have been examined with the use of the hierarchical regression techniques. The relation between three types of marketing orientation and innovativeness has been analysed: customer orientation, competitor orientation and interfunctional coordination. The research results show that marketing orientation has a positive total effect on improving innovativeness. The conclusions suggest, contrary to the marketing orientation sources, that customer orientation hinder marketing innovation. A positive interrelation between customer orientation and competitor orientation, as a component of marketing orientation and innovation was supported. The positive interrelationships between inter-functional orientation and innovativeness was rejected. The study explores the relationship between marketing orientation and innovativeness, thus theoretically contributing to marketing orientation literature. Moreover, relevant ramifications are provided for management, concerning the ways to boost the level of innovativeness