The role of national institutions in the effects of consumers’ perceived customer orientation and firm innovativeness

Abstract

Many multinational corporations force global customer orientation and firm innovativeness. However, little is known about how or why they benefit from perceived customer orientation and firm innovativeness in one country but not in another. The authors fill this gap by referring to information processing and institutional theories. They contribute to research by analyzing the roles of country development and dimensions of national culture in the direct and indirect effects of perceived customer orientation through firm innovativeness on consumer product purchase intention across 53 countries. The results of multilevel structural equation modeling show different explained variances of the institutions and varying moderations for the differently strong effects of perceived customer orientation and firm innovativeness. Institutional theory strongly complements behavioral theorizing. The findings have direct implications for managers interested in understanding how perceived customer orientation and firm innovativeness interact and attract consumers in different country contexts.