Abstract
The purpose of this paper is to analyze the concept of market orientation as an outer source of innovation for organizations in the context of Albania. We investigate the market orientation relation with innovation and firm performance by analyzing a sample of 99 companies operating in Albania. The relationships and the impact of market orientation on innovation and performance is tested empirically through structural equation modeling techniques (SEM). The analysis confirms prior theoretical and empirical findings in developed economies, however, it gives way to some contextual interpretations. The implications of this study are considerable in academia and in managerial purposes. In academia, considering that there is no research in Albania on the topic of us being aware of, nevertheless, we identify the need for deeper and wider research, especially with bigger sample sizes, industry-specific, and across industries to grasp more about market reality. On managerial account, its relevance relies in the distinction of market orientation construct and the right division of components within the company, and the adequate approach toward intelligence generation, dissemination, and reaction on it by responding to market needs and competition with innovative products and services.
Highlights
Economic development and innovation is a sine qua non symbiosis
The main objective of this paper is to investigate the relationship between market orientation and innovation
The confirmation of the first and second hypothesis shows that intelligence generation, dissemination and acting on it is a process that transforms market feedback into valuable action
Summary
Economic development and innovation is a sine qua non symbiosis. The Schumpeterian distinction between knowledge creation and innovation (Schumpeter 1934) or idea commercialization, conditions the analysis in context of the knowledge economy, especially when it comes to countries like Albania. The specificity of the country comes due to its scarcity of resources and abilities to invest in whichever innovation driver. In an economy that requires knowledge to grow and develop, this distinction plays a substantial role. Capello and Lenzi (2014) find that knowledge and innovation are economic growth drivers with different spatial impact, Prifti and Alimehmeti Journal of Innovation and Entrepreneurship (2017) 6:8 implying that knowledge benefits in growth are more concentrated, while growth benefits from innovation (idea commercialization) tend to be more widespread In an economy that requires knowledge to grow and develop, this distinction plays a substantial role. Capello and Lenzi (2014) find that knowledge and innovation are economic growth drivers with different spatial impact, Prifti and Alimehmeti Journal of Innovation and Entrepreneurship (2017) 6:8 implying that knowledge benefits in growth are more concentrated, while growth benefits from innovation (idea commercialization) tend to be more widespread
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