The Effects of Strategic Orientations on Innovation Capabilities and Market Performance: The Case of ASEM

Abstract

In this study, the term strategic orientation that was developed within the scope of competitive advantage theories in the literature is analysed through the case of ASEM (Furniture Market of Sakarya). Throughout the study, the status of ASEM members is defined and the relationship of the strategic orientation of the firms with their innovation strategies is determined. This study has been conducted for defining the status of strategic orientation of the firms (market orientation, entrepreneurial orientation and technology orientation) in using innovation capabilities. Within the study, a model has been developed under the assumption that strategic orientations have positive effects on market performance and creating costumer value through innovation capabilities. The data is collected through a survey that tests strategic orientations, innovation types and market performance for SMEs in ASEM. The findings suggest that proactive market orientation, proactive entrepreneurial orientation and technology orientation are positively related in innovation capabilities. In addition, innovation capabilities play a key role between strategic orientation and market performance.