Does the firm's market orientation behaviour influence innovation's success?

Abstract

Purpose

This study aims to examine the relationship between a firm's market orientation, product innovation success and market performance.

Design/methodology/approach

Data for the empirical research is obtained from a sample of innovative industrial enterprises based in Andalusia (Southern Spain), all of which were required to have introduced a new product in the preceding three years and to have more than 20 employees. Data collection was conducted by means of a postal survey of 294 firms. The respondents were either the director of the marketing department or the general manager. In all, 85 questionnaires were completed correctly by firms and included in the study, a response rate of 28.91 per cent.

Findings

The results support a positive relationship between market orientation and new product success, providing also partial confirmation of the moderating role of “product newness” in the relationship between market orientation and new product performance.

Originality/value

This work contributes to the literature as follows. First, it addresses the previously neglected question of the influence of MO on dimensions other than organisational performance (in the broad sense). The literature has suggested that MO improves the performance of innovations, but few studies have examined the relationship between MO and the characteristics of new products (such as degree of newness and success); nor have they examined the moderating role of degree of product newness. Second, the study provides empirical evidence that the relationship between MO and product innovation is influenced by the degree of product newness for the market (NM).

Citation

Vega‐Vázquez, M., Cossío‐Silva, F.J. and Martín‐Ruíz, D. (2012), "Does the firm's market orientation behaviour influence innovation's success?", Management Decision, Vol. 50 No. 8, pp. 1445-1464. https://doi.org/10.1108/00251741211262024