IMPACT OF MARKET ORIENTATION ON FIRM PERFORMANCE; THE MEDIATING ROLE OF INNOVATION STRATEGIES IN EXCELLENCE AWARDED CORPORATE SECTOR

Abstract

Innovation strategy and market orientation is vital for firm performance and competitive advantage. The survival of organizations dependent on its innovation strategies regarding the product, process and technological development and market orientation in order to increase firm performance. Innovation strategies. Market orientation helps in giving direction to the organization by providing superior value to the customers. The market orientation from organization perspective makes the customer as the focal point that influence on its performance. These main objectives of this study are; to examine the direct relationship between market orientation and firm performance and examine the indirect relationship of innovation strategies (mediation) between market orientation and firm performance. Using quantitative technique, this study collected questionnaires from 240 employees and managers working in corporate excellence awarded organizations. The data was analyzed in SPSS and PLS-SEM for analysis. The results indicated that market orientation has direct relationship with firm performance. The results also confirmed the indirect effect of innovation strategies between market orientation and firm performance. This indirect effect indicated that innovation strategies partially mediate between market orientation and firm performance. The finding of this study suggest that the corporate sector top managers and policy makers should adopt and implement the innovation strategy for the long term success and gain superior performance.