An Integrative Model of Market Orientation on Innovation Performance

Abstract

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 Keywords: Market Orientation; Customer Relationship Management; Knowledge Management, Innovation Performance. Reference to this paper should be made as follows: Wahyuni, N. M; Astawa; I.P. 2020. An Integrative Model of Market Orientation on Innovation Performance. J. Mgt. Mkt. Review, 5(1) 51 – 63 https://doi.org/10.35609/jmmr.2020.5.1(5) JEL Classification: M30, M31, M39.

Customer-Defined Market Orientation, Brand Image and Customer Satisfaction: A Mediation Approach

“…Moreover, the results revealed that CDMO is positively related to CS. The research findings are also supported by previous studies (e.g., Deshpande et al, 1993; Khan & Ghouri, 2018; Najafi-Tavani et al, 2016; Wahyuni & Astawa, 2020; Wang, Ling et al, 2021), in which it is suggested that CO, COM, IFC are significantly related to superior business performance. These findings inferred that restaurants could increase CS by improving customer value using the components of MO, that is, CO, competitive fairness, and functional demands of the customers (Crick, 2021).…”

“…MO represents the organization's culture by concentrating on providing better competitive value to consumers as well as identifying trends in target markets to fulfill consumers' increasing demands (Akroush & Mahadin, 2019). MO is considered a distinct process that focuses on CS and is positioned as an organizational culture in the central business operation (Roach et al, 2014), thereby creating superior customer value and improving business performance (Kohli & Jaworski, 1990;Wahyuni & Astawa, 2020). Singh and Ranchhod (2004) suggest organizations should not only be customer-oriented but also have information about competitors to meet customer expectations.…”

“…MO is considered an essential constituent in defining business performance. Therefore, several studies have exemplified MO as a critical component in achieving business profitability (Narver & Slater, 1990), knowledge sharing (Wang, Ling et al, 2021), learning organization (Rhee et al, 2010), short and long-run sales & profit (Kumar et al, 2011), new product performance (Najafi-Tavani et al, 2016), innovative performance (Wahyuni & Astawa, 2020), strategic performance (Dobni & Luffman, 2005), and corporate performance (Crick, 2021). Previous research has examined MO and business performance as an organizational-level construct.…”

Does Entrepreneurship Make You Happier? A Comparative Analysis between Entrepreneurs and Wage Earners

“…When analyzed by categories of professional situations, most of the distributions are not expected in all cases. Spearman's and Pearson's correlations, means, and standard deviations, as well as the parameters of the Kruskal-Wallis test and ANOVA test, are shown in Table 6 [85].…”

Does Entrepreneurship Make You Happier? A Comparative Analysis Between Entrepreneurs and Wage Earners.

“…When analyzed by categories of professional situations, most of the distributions are not expected in all cases. Spearman's and Pearson's correlations, means, and standard deviations, as well as the parameters of the Kruskal-Wallis test and ANOVA test, are shown in Table 6 [85]. Regarding the correlations:…”