The impact of different types of market orientation on product innovation performance

Abstract

Purpose -This study aims to examine the role of responsive market orientation and proactive market orientation in product innovation performance directly and indirectly via innovativeness, as well as the moderating effect of environmental turbulence in the market orientation-product innovation performance link among Chinese manufacturing firms. Design/methodology/approach -A questionnaire survey was conducted among 227 manufacturing firms in mainland China. A total of 11 hypotheses related to responsive and proactive market orientation, innovativeness and new product success as well as moderating environmental variables are examined by structural equation modeling and hierarchical regression techniques.Findings -The research results show that: both proactive market orientation and responsive market orientation have a positive total effect in improving product innovation performance; the direct path dominates the total effect of responsive MO on new product success, while proactive MO impacts product innovation performance primarily via innovativeness as a mediating variable; and the role of responsive market orientation in new product success is more significant under stable technological and market conditions, while proactive market orientation improves product innovation performance to a greater extent under turbulent technological and market conditions. Originality/value -The research examines the relationship among responsive and proactive MO, innovativeness and new product success as well as potential environmental moderators, thus contributing to market orientation literature theoretically. In addition, relevant implications are provided for management as to how to improve product innovation performance.

An Investigation of Market Orientation (MO) and Tourism Small and Medium-Sized Enterprises’ (SMEs) Performance in Developing Countries: A Review of the Literature

“…As Table 5 shows, most of the researchers investigated the antecedents of market orientation proposed by Kohli and Jaworski (1990) and Jaworski and Kohli (1993) (that is top management factors, interdepartmental factors, and organizational structural factors). While others investigated antecedents such as organizational capabilities and organizational culture (Keelson, 2012), political behavior (Harris & Piercy, 1999;Ranjbarian, Kaboli, & Rojuee, 2012), leadership styles (Kassim & Sulaiman, 2011;Keelson, 2012), professionalism (Kowalik, 2011;Zhou, Brown, & Dev, 2009), and formal marketing education and management training (Zhang & Duan, 2010). Figures 3 and 4) show the distribution of MO articles in developed and developing countries, and in small, medium, and large firms.…”

Market orientation vs. inovativeness of SMEs of Podlaskie province

“…… Hence, all business enterprises have only two-basic objectives: marketing and innovation" (Drucker 1954). For this reason the interrelation between marketing orientation and innovation has been debated for decades (Han et al 1998;Atuahene-Gima 1996;Zhang, Duan 2010;Lado, Maydeu-Olivares 2001). Marketing orientation in relation to innovation is the object of scientific interest, from the perspective of the three constituents of this orientation: customer orientation, competitor orientation and interfunctional coordination (Han et al 1998;Grinstein 2008), (Naidoo 2010) different types of innovations: technical innovations (Han et al 1998), administrative innovations (Han et al 1998), product innovation (Atuahene-Gima 1996; Zhang, Duan 2010; Nasution et al 2011) and also types of products: new-to-the-world and me-too-products products (Lukas, Ferrell 2000); radical and incremental innovation (Baker, Sinkula 2007;Li et al 2008).…”

Critical Determinants of Technological Innovation: A Conceptual Framework and a Case Study from Iraq

“…Hung, Lien, Fang, & McLean (2010) argued that enterprises have a try to combine their information by rig out advantageous conditions to knowledge participation among individuals to obtain elevated grade of innovation. In a more elaborated insight, intelligence dissemination as a dimension of MO pertains to knowledge sharing among various sections and firm members (Zhang & Duan, 2010;Beck et al, 2011;Chung, 2012) and the exchange of ideas produced from intelligence among departments and individuals in an organization through formal and informal methods (Chao & Spillan, 2010), both horizontal and vertical ways (Chung, 2012). In similar vein, Li, Wei, and Liu, (2010) found positive relation between MO and Knowledge acquisition.…”

“…On the other hand, MO has been studied extensively as stimulus for innovation; substantial body of research has focused on its different roles in new product and process success (Beck, Janssens, Debruyne, & Lommelen, 2011;Wang & Chung, 2013;Zhang & Duan, 2010). None of the former studies has investigated the mutual relationship between KS and MO and their role in harnessing technological innovation.…”