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Article

Ni Made Wahyuni and I Made Sara

The purpose of this study is to provide new practical and theoretical insights into how small and medium-sized enterprises (SMEs) adjust and further develop business…

Abstract

Purpose

The purpose of this study is to provide new practical and theoretical insights into how small and medium-sized enterprises (SMEs) adjust and further develop business competencies, innovations and performance by using market orientation, learning orientation behaviors and entrepreneurial orientation.

Design/methodology/approach

The data was collected from manufacturing SMEs of textile products that had a number of employees between 5 and 99 people in the province of Bali, Indonesia, in 2016. Bali province was chosen as a research location because Bali was one of the tourism centers in Indonesia and even in the world was considered suitable for this research. It was because it had textile product industries that contributed in the fulfillment of the needs of tourism clothing, national economy, the fulfillment of fashion needs and foreign exchange contributors from non-oil exports (Industry and Trade Service of Bali).

Findings

Based on the results of descriptive and inferential analysis that has been conducted, it can be concluded that the answer to the problems and objectives that have been determined is market orientation, learning orientation and entrepreneurial orientation affect business performance through knowledge competence and innovation directly and its influence is significantly positive. But market orientation, learning orientation and entrepreneurial orientation do not directly have a significant positive effect on innovation through knowledge competence. Market orientation, learning orientation and entrepreneurship orientation indirectly have a significant positive effect on business performance through knowledge and innovation competencies.

Originality/value

The lack of studies in the existing literature underscores the potential contribution of this subsequent study. The novelty of the research is first to develop a concept of learning orientation that is linked to competence of knowledge, which this link has not been much expressed in the context of industry SMEs; second, to build the concept of innovation development of small and medium-sized industry of textile industry based on market orientation by strengthening the mediation role of competence of knowledge.

Details

Journal of Workplace Learning, vol. 32 no. 1
Type: Research Article
ISSN: 1366-5626

Keywords

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Article

Jing Zhang and Yanling Duan

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

Nankai Business Review International, vol. 1 no. 2
Type: Research Article
ISSN: 2040-8749

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Article

Liem Viet Ngo and Aron O'Cass

The purpose of this paper is to adopt a customer‐centric value creation perspective to provide insights into the contribution of business orientations, especially…

Abstract

Purpose

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).

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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).

Originality/value

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.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 23 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

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Article

Camarero Carmen and Garrido María José

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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

Details

European Journal of Innovation Management, vol. 11 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

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Article

David C. Roach, Joel Ryman and Joshua White

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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

Research limitations/implications

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.

Practical implications

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.

Originality/value

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

Details

Journal of Research in Marketing and Entrepreneurship, vol. 16 no. 2
Type: Research Article
ISSN: 1471-5201

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Article

Miguel Hernández‐Espallardo and Elena Delgado‐Ballester

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…

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

European Journal of Innovation Management, vol. 12 no. 4
Type: Research Article
ISSN: 1460-1060

Keywords

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Article

José Carlos Pinho

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…

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

International Journal of Quality & Reliability Management, vol. 25 no. 3
Type: Research Article
ISSN: 0265-671X

Keywords

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Article

Alexander Newman, Daniel Prajogo and Andrew Atherton

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…

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

Journal of Service Theory and Practice, vol. 26 no. 1
Type: Research Article
ISSN: 2055-6225

Keywords

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Article

Daniel Jiménez‐Jimenez, Raquel Sanz Valle and Miguel Hernandez‐Espallardo

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

Abstract

Purpose

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

Design/methodology/approach

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

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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

Details

European Journal of Innovation Management, vol. 11 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

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Article

Julia C. Naranjo‐Valencia, Daniel Jiménez‐Jiménez and Raquel Sanz‐Valle

Innovation is crucial for attaining a competitive advantage for companies. Innovation, versus imitation, motivates companies to launch new products and become pioneers on…

Abstract

Purpose

Innovation is crucial for attaining a competitive advantage for companies. Innovation, versus imitation, motivates companies to launch new products and become pioneers on markets. Many factors have been shown to be determinants for supporting an organizational innovative orientation. One of them is organizational culture. The objective of this paper is to analyze the organizational culture that fosters or inhibits organizational innovation and imitation strategy.

Design/methodology/approach

The paper uses a sample of 471 Spanish companies for examining the hypotheses. Using hierarchical multiple regression analysis, it relates the effect of organizational culture with an innovation strategy.

Findings

The results confirm the hypotheses. The paper finds that organizational culture is a clear determinant of innovation strategy. Moreover, adhocracy cultures foster innovation strategies and hierarchical cultures promote imitation cultures.

Research limitations/implications

The main limitations are that data in the study were collected from one source for the cross‐sectional design of this research.

Practical implications

Managers should pay more attention to their organization culture if they pursue innovation/imitation strategies. Moreover, depending on this orientation (to be the first company to introduce in new markets or develop new products for a market versus to follow a pioneer), companies should promote different values and norms in their organizations.

Originality/value

The main value of this paper is its analysis and testing of the relation of organizational culture and innovation orientation. The majority of the literature underlines the paper's seeking after organizational culture for innovation. However, this topic has not been studied in depth and requires attention to different organizational cultures and innovation orientations.

Details

Management Decision, vol. 49 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

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