Abstract
The traditional perception of market orientation – as the satisfaction of expressed customer needs – is considered to be too customer-led, thus producing no radical but only incremental innovation. The present study deals with the second facet of market orientation – proactive market orientation, i.e. the discovery and satisfaction of latent customer needs – and investigates the relationship of firm performance with both market orientation facets in conjunction with incremental and radical innovation. We test interaction effects based on survey data from 737 firms from Austria, Germany, Switzerland, Thailand and the USA, and conduct a cross-cultural comparison of the results. The empirical results indicate significant relationships between market orientations and market effectiveness and reveal significant interactions between each market orientation facet and the corresponding innovation focus. These findings suggest that firms across cultures benefit when they act in a market-oriented way and when they align their market orientation with their innovation strategy.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call