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Mediating effect of innovation with market orientation and performance relationship

Mediating effect of innovation with market orientation and performance relationship The purpose of this study is to examine the effect of market orientation on performance and to figure out the mediator effect of incremental innovation on this relationship with an implementation on Indian small and medium enterprises (SMEs).Design/methodology/approachFollowing a survey among 333 owners/managers of SMEs in Indian, six research propositions were framed. Confirmatory factor analysis (CFA) and regression analysis was used for the purpose of data analysis.FindingsThe outcome of the study demonstrates a significant effect of market orientation on SMEs performance. In addition, the mediating effect of innovation between market orientation and business performance was not supported in the context.Research limitations/implicationsThis study uses cross-sectional research, which limits the ability to test the causality; hence, such studies should be replicated in other settings also to get more evidences about the relationship.Practical implicationsThe research will help managers especially in manufacturing SMEs of developing countries to understand benefits of being market-oriented to improve performance.Originality/valueThe study attempts to enrich the market orientation literature especially in developing economies. It identifies the significant effect of interfunctional coordination on performance of small and medium enterprises working in more volatile environment. Further, the study also examines mediating role of innovation between market orientation and performance linkage. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Research The Journal of the Iberoamerican Academy of Management Emerald Publishing

Mediating effect of innovation with market orientation and performance relationship

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References (65)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1536-5433
DOI
10.1108/mrjiam-03-2018-0827
Publisher site
See Article on Publisher Site

Abstract

The purpose of this study is to examine the effect of market orientation on performance and to figure out the mediator effect of incremental innovation on this relationship with an implementation on Indian small and medium enterprises (SMEs).Design/methodology/approachFollowing a survey among 333 owners/managers of SMEs in Indian, six research propositions were framed. Confirmatory factor analysis (CFA) and regression analysis was used for the purpose of data analysis.FindingsThe outcome of the study demonstrates a significant effect of market orientation on SMEs performance. In addition, the mediating effect of innovation between market orientation and business performance was not supported in the context.Research limitations/implicationsThis study uses cross-sectional research, which limits the ability to test the causality; hence, such studies should be replicated in other settings also to get more evidences about the relationship.Practical implicationsThe research will help managers especially in manufacturing SMEs of developing countries to understand benefits of being market-oriented to improve performance.Originality/valueThe study attempts to enrich the market orientation literature especially in developing economies. It identifies the significant effect of interfunctional coordination on performance of small and medium enterprises working in more volatile environment. Further, the study also examines mediating role of innovation between market orientation and performance linkage.

Journal

Management Research The Journal of the Iberoamerican Academy of Management – Emerald Publishing

Published: Aug 20, 2019

Keywords: Mediation; Market orientation; SMEs; Incremental innovation

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