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Regardless of its relevance for economic development, the influence of strategic orientation by innovation orientation, and strategic marketing by marketing capability on firm performance, this interesting study focused on firms with strategic industries (defense and security) in Indonesia. It approached the gap in three ways. Initially, the examination was conducted on the role of innovation orientation, marketing capability, the interaction of innovation orientation and marketing capability on firm performance. The next step was considering the contribution of state-owned enterprise (SOE) and non-SOE. Finally, this relationship was studied in strategic industries of firms in Indonesia. The firm performance in this study, which we chose, was operational performance. The proposed conceptual model would be tested by distributing questionnaires to 41 firms in Indonesia. This study gave insight into the matters, which should be the companies’ focus, to improve their operations’ performance. By using PLS-based structural equation modeling (SEM) analysis, the results of the relationship between innovation orientation, marketing capability, and the interaction between innovation orientation and marketing capability on operational performance were identified. The findings could be clarified via the variations in the characteristics of enterprises (SOE and non-SOE). Moreover, there were clear variations in the findings, which were recognized among the firms’ relatively different characteristics. The main finding was a challenge to generalize the relationship from strategic orientation and strategic marketing to performance. The results of firm characteristics also had considerable managerial relevance. The authors recommend strategic industries (defense and security) in Indonesia in achieving operational performance excellence. Management’s importance is paying attention to the relationship between innovation orientation, marketing capability, and dynamic capability in running a company organization.

Despite the theoretical advancements of market orientation and firm performance, there is a paucity of research regarding SMEs in Indonesia. Customer and competitor orientation were examined as two distinct constructs as per the literature, as it has been questioned for its robustness. They have been used synonymously, even though customer orientation is operationalised as a component of a market orientation construct. There is support for the argument from a theoretical point of view to keep customer orientation and competitor orientation separate. The objective of this research was to empirically test market orientation concepts on firm performance and assessing customer and competitor orientation separately. Furthermore, it also tests whether innovation plays a mediating role.

A sample of 309 small and medium-sized firms was found eligible for this study. Structural Equation Modelling was used to analyze the data. A multi-industry sample of firms was used to strengthen the generalisability of the results. The sample was acquired from two databases of SMEs directory in Kudus and Pati, East Java Indonesia, participants were randomly selected.

The findings show that innovation mediates the relationship between competitor orientation and firm performance, while competitor orientation had no significant relationship with firm performance. Customer orientation was found to positively influence firm performance.

The role of innovation as a mediator within SMEs in a developing country opens up avenues for further research among other developing countries. By examining both the concepts of customer and competitor orientation separately and establishing relationships, we validate support for this argument both from a methodological and theoretical point of view.

The purpose of this paper is to examine the role of market orientation and innovation orientation in new product performance as well as the potential moderating role of innovation orientation and environmental variables in the market orientation‐new product performance link among Chinese manufacturing firms.

A questionnaire survey was conducted among 227 manufacturing firms in mainland China. A total of six hypotheses related to market orientation, innovation orientation, and new product success as well as moderating effects of innovation orientation and environmental variables are examined by structural equation modeling and hierarchical regression techniques.

The research results show that: first, the conceptual model is superior to the popular model in Western literature in terms of model fit goodness; second, market orientation and innovation orientation have significant and positive impact, which is higher than the average level in previous research, upon new product success; third, innovation orientation and technological turbulence have a positive moderating effect on market orientation‐new product performance link; and fourth, market turbulence and competitive intensity have no moderating effects. In addition, managerial implications as to how to improve product innovation performance are provided for Chinese manufacturers.

The paper contributes to the extant literature of market orientation and product innovation in the following three ways. First of all, the research empirically validates a modified conceptual model incorporating market orientation, innovation orientation and new product performance. Second, the facilitating impact of strategic orientations (including market orientation and innovation orientation) upon new product performance is higher than the average level in previous studies (primarily based on developed economies), indicating the greater effectiveness of two strategic orientations in transition economy and east‐Asian cultural context. Third, by examining the potential moderating roles of innovation orientation and environmental variables, we are able to better understand how to match market orientation strategy with those moderators in order to help enhance the product innovation performance results of manufacturing firms.

The purpose of this paper is to adopt a customer‐centric value creation perspective to provide insights into the contribution of business orientations, especially marketing orientation and innovation orientation to the creation of customer‐centric value (customer equity and brand performance).

To undertake this examination, a model was developed and then tested to validate its applicability in the context of both developed and developing economies. The paper includes partial least squares.

The findings demonstrate that being marketing‐oriented and innovation‐oriented appears to be important in creating customers, keeping them, and increasing add‐on selling to them and rewards the firm with greater brand performance in the marketplace. Importantly, these relationships are universally held across developed and developing business environments. Interestingly, marketing orientation was found to contribute more to the creation of customer‐centric value than innovation orientation in developing business environment, whereas the opposite was found in the context of developed business environment.

The data incorporate only the subjective measures of customer‐centric value. Future studies can use financial measures to complement the self‐reporting approach used in this paper. This dual‐approach to measuring the value of customers to the firm (customer equity) and brand performance would provide additional insights into the customer‐centric marketing literature.

The findings suggest that managers should strive to develop a high level of marketing orientation and innovation orientation as two efficient ways to achieve higher levels of customer equity. They are also advised that if their firms are more effective in acquiring potential customers, retaining current customers, and enhancing add‐on selling, they see their brands perform better. Importantly, the findings also provide guidance for managers on how to allocate their resources to key business activities (e.g. marketing and innovation) in the context of international business (developing versus developed business environments).

This study contributes to customer‐centric marketing theory by enhancing understanding of the contribution of marketing and innovation to the creation of customer‐centric value in different business environments. This study also contributes to the business orientation literature by demonstrating the utility of a cultural‐behavioral approach in measuring marketing orientation and innovation orientation.

This paper aims to provide evidence of the mediating effect of technological and administrative innovation on the link between market orientation and the economic and social performance of museums.

Building on extensive literature, a model of the relationships is developed and empirically tested using survey data collected from 276 museums (135 Spanish and 141 French). Data are analyzed through structural equation modeling and/ or path modeling.

In the present study, evidence is found to support the positive and significant link between market orientation and the economic and social performance of museums. The paper statistically shows that although the linkage between market orientation and performance is significant, what best accounts for enhanced performance is technological and organizational innovation.

This study has implications for museums aiming to increase their performance and innovativeness. The study suggests that museum managers should include technological and organizational innovation in models of market orientation to enhance the explanations of the economic and social performance. This study suggests the innovation is important mediator.

The paper suggests that museum managers need to consider the impact of technological and administrative innovations on achievement of organizational performance.

This purpose of this study is to deconstruct market orientation to explore how culture interrelates with conduct and value-creating innovation and its effect on performance. The authors suggest that market orientation is an organizational identity that can be built and managed for sustained competitive advantage.

The authors use a split sample of 553 Canadian small- and medium-sized enterprises (SMEs) in both the manufacturing and technical service sectors. Hierarchical moderated regression analysis is used to test the main hypothesis that culture moderates the relationship between conduct and innovation. Support for the respective hypotheses is determined by the statistical significance of each focal variable.

The study finds that culture does in fact moderate the relationship between conduct and innovation but only in service firms, not in manufacturing firms.

Theoretical implications include establishing support for the main premise of the paper, namely, that market-oriented culture interacts with the behavioral component of market orientation influencing the firm’s ability to create value through innovation.

Managerial implications include the refinement of the many conceptualizations of the innovation construct by establishing innovation as value-creating. It also provides insight on how firm culture relates to the systems and processes used to operationalize both a market and innovation conduct within the firm.

This paper provides a unique insight into the marketing/innovation interface, specifically in the context of SMEs.

The purpose of this paper is to study whether the effectiveness of innovation in improving a firm's performance varies in different competitive situations and to analyze whether the competitive forces act as a motivator or as an inhibitor.

The paper formulates some hypotheses from the literature review. These hypotheses are tested using structural equation modelling with data collected from 218 manufacturers.

The findings show that small firms must invest in innovation preferably when competitive forces are more intense. Moreover it is found the positive role that market orientation plays in promoting innovation and performance, no matter the level of the competitive forces.

A decision had to be taken on the range of concepts and the domain used for measuring each concept. For future research the paper suggests considering different types of innovations (e.g. incremental vs radical) to get a more precise explanation of the set of relationships considered in this research.

SMEs have to use product innovation in accordance with their competitive situation. When competitive pressure is low, SMEs should be cautious about exaggerating investments on product innovation, whereas investments in other type of market oriented behaviours could be more productive. On the other hand, firms should focus on innovations based on market orientation when the competitive forces expose them to a harsh environment.

This paper provides a clarification of the reasons that may be behind a positive, a negative, or a non‐significant moderating effect of the firm's competitive forces on the market orientation‐product innovation relationship in small manufacturers.

The purpose of this paper is to analyse the importance of developing a quality management approach as a way to enhance the bottom line results of small and medium sized enterprises (SMEs). The main goal is to examine the synergistic relationships between TQM, performance, consumer orientation and innovation.

A structural equation modelling using a single‐indicator analysis corrected for measurement error is used to test a number of antecedents of SME performance.

The findings reveal that the most relevant TQM components impacting on SME performance and consumer orientation are measuring results, quality assurance systems, top‐manager training programmes and leadership initiatives. Results also confirm both the impact of innovation on performance as well as that of consumer orientation on innovation. Furthermore, no statistical evidence was found to either confirm the effect of TQM on innovation, or that of consumer orientation on performance.

The present study considers a key‐informant approach, which may raise uncertainty about potential single‐method bias. Future research should extend the sample to multiple regions and consider a larger pool of respondents.

Findings of the present study may assist public policy‐makers to evaluate the importance of TQM and of consumer orientation and innovation in enhancing SME performance, which serve as the best potential sources of jobs and growth in the European economy.

This study finds particular relevance in emphasizing that TQM should not be viewed as the only critical factor leading to performance and that more complex relationships need to be considered by integrating other constructs as major antecedents of SME performance.

The purpose of this paper is to examine the effects of market orientation on exploratory and exploitative innovation, and the moderating effects of family ownership on these relationships.

This study utilizes multi-group path analysis and confirmatory factor analysis in LISREL on data from 228 firms in the Australian service sector.

This study establishes that both customer and competitor innovation are positively related to exploitative and exploratory innovation. However, customer orientation does not lead to significantly stronger effects on exploitative innovation than on exploratory innovation, and competitor orientation does not lead to significantly stronger effects on exploratory innovation than on exploitative innovation. In addition, the study found that the relationship between customer orientation and exploratory innovation was stronger for family firms, while the relationships between competitor orientation and both exploratory and exploitative innovation were stronger for non-family firms.

The cross-sectional design is one weakness of this study. In addition, as firms in the present study came from the service sector the generalizability of the findings to other sectors of the economy need to be determined.

These findings of this study highlight the need for managers to build a strong market orientation in order to promote innovation, and consider the effects of ownership structure on innovation strategies.

This study is the first to measure the relative influence of customer and competitor orientation on a firm’s use of exploitative and exploratory innovation strategies.

The purpose of this paper is to study empirically the relationships between market orientation, organizational learning, innovation and performance.

This paper formulates some hypotheses from the literature review. These hypotheses are tested using structural equations modelling with data collected from 744 firms.

Findings show that, although market orientation and organizational learning foster innovation, the effect of the latter is comparatively higher. Moreover, the impact of market orientation and organizational learning on performance is completely mediated by innovation.

The main limitations of this paper are the cross‐sectional design of the research and the use of single informants for collecting the data. Apart from overcoming these limitations, for future research it is suggested that: studying the likely causal relation between market orientation and organizational learning; taking into account information about how radical the innovation is; and including the degree of dynamism of the market as a likely moderator of the relations proposed in the model.

The paper provides evidence, first, that companies should be more innovative in order to increase performance. Second, that both adopting market orientation and improving the organizational learning processes of the company have a positive impact on innovation. And third, that innovation mediates the relation between market orientation and organizational learning, and performance.

This paper jointly examines in the same model the little‐researched links between market orientation, organizational learning, innovation and performance.