Linking Strategic and Market Orientations to Organizational Performance: The Role of Innovation in Private Healthcare Organizations

Abstract

Scholars have been extensively researching the link between strategic and market orientations and organizational performance and the link between innovativeness and organizational performance in various different settings. Given the centrality of those orientations and of innovativeness to the organizational performance in both manufacturing and service industries, scholars do not focus on the missing link of innovativeness among the relationship of those orientations with the performance, particularly in a service industry. Thus, this study aspiresto be the bridge among those variables in a highly competitive environment in developing country of whose results indicate that innovativeness is largely dependent on market orientation and seems to be playing a mediator role to drive organizational performance in private healthcare organizations. However, it does not support the link between strategic orientation and innovativeness as well as organizational performance. Thus, strategic orientation seems not to be a descriptive variable for and have interaction with organizational performance as well as innovativeness although they are highly correlated to each other.