Market orientation and performance in service firms: role of innovation

Abstract

There is wide acceptance of the precept that market orientation is associated with superior firm performance. However, empirical support for the proposition in prior literature is weak. This study examines the relationship between market orientation and performance with data from 201 international hotels and finds that market orientation is positively associated with both judgmental measures of performance ± service quality, customer satisfaction, and employee satisfaction, and objective measures of performance ± occupancy rate, gross operating profit, and market share. Specifically, the study finds that the immediate impact of market orientation is to spur innovation, which, in turn, enhances judgmental performance, which, in turn, enhances objective performance.

Dynamic capabilities and organizational performance: The mediating role of innovation

“…Therefore, when opportunities are first glimpsed, sensing capability could not only help firms to understand which technologies should be explored, but also provide the necessary foundation for them to figure out which market segments should be targeted (Teece, Pisano, & Shuen, 1997 (Agarwal, Krishna Erramilli, & Dev, 2003). Based on the aforementioned positive relationship between innovation and performance, we propose the following hypotheses:…”

Innovation Activity in the Hotel Sector – the Case of Croatia

“…On the other hand, there is a limited number of articles focusing on innovations in the hotel sector (Agarwal et al, 2003;Frehse, 2005, Ottenbacher and 3. innovation activity is higher in hotels operating in hotels chains (Or…la-Sintes et al, 2005). Moreover, Ottenbacher and Gnoth (2005) found that hotels operating in chains and independent hotels vary greatly in terms of the elements determining the success of new services;…”

Innovations in the restaurant industry: An exploratory study

“…ability o customize dishes) and increase profits. Positive correlation between aforementioned marketing activities and business success was found by many authors (Agarwal et al, 2003;Sin et al, 2005;Leskiewicz Sandvik, Sandvik, 2003). Moreover, they should stay well informed about the trends within the industry by following relevant publications or through contact with faculties, educational centers and similar institutions and associations and facilitate the innovation process in that regard.…”