Market Orientation, Marketing Innovation as Performance Drivers: Extending the Paradigm

Recent academic literature suggests that there is a link between organizational market orientation and firm performance (see, e.g. Han et al., 1998). There is debate regarding the nature of this link, with some literature indicating positive relationships (Narver and Slater, 1990; Pelham, 2000) and others suggesting no significant relationship (e.g. Hart and Diamantopoulos, 1993). Other findings suggest that there may be a stronger positive relationship between innovation and performance rather than between market orientation and performance (Han, Kim and Srivastava,1998). One recent study (Matear, Osborne, Garrett and Gray, 2002) found a strong, positive relationship between market orientation and performance in service firms. An understanding of the nature and strength of the relationship between market orientation and market performance, together with any moderating or intervening variables such as size or age of the firm, industry in which it operates, etc., is important for strategic planning. Our study researched this link through a survey of middle and senior level executives of Indian companies.

Author: Nargundkar, Rajendra, Shergill, Gurvinder

Source: Indian Institute of Management Kozhikode

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