Responsive Market Orientation Research Articles

How does market orientation affect disruptive green innovation? The mediating role of resource bricolage

PurposeBased on the resource bricolage theory, we investigate the impact of proactive market orientation and responsive market orientation on firms’ disruptive green innovation. We also examine the impact of resource bricolage on disruptive green innovation and the mediating role of resource bricolage.Design/methodology/approachQuantitative data were collected from 232 firms in China. Structural equation modelling was used to test hypotheses.FindingsThe result show that proactive market orientation had positive effect on firm’s disruptive green innovation, whereas responsive market orientation had negative effect on firm’s disruptive green innovation. In addition, resource bricolage positively promotes firm’s disruptive green innovation. Resource bricolage played a mediating role between proactive market orientation and disruptive green innovation. Resource bricolage had a suppressing effect between responsive market orientation and disruptive green innovation.Originality/valueThis study makes up for the deficiency of the existing research on the relationship between market orientation and enterprise disruptive green innovation, improves the guidance mechanism of disruptive green innovation.

Strategic Orientation and Absorptive Capacity: The Mediating Role Of Functional Conflict

"Research Aims: This study investigates the mediating role of functional conflict in explaining the effect of market orientation on the absorptive capacity of small and medium enterprises (SME) exporters in emerging markets. Design/Methodology/Approach: The data were successfully collected from 124 respondents and tested using structural equation modelling via Smart-PLS. Research Findings: The results support the notion that responsive market orientation and proactive market orientation positively influence absorptive capacity. In addition, functional conflicts serve as a quasi-mediator in the relationship between responsive market orientation and absorptive capacity. Theoretical Contribution/Originality: The export competitiveness of SMEs is the output of intangible assets of external knowledge. The ability to identify the relevant knowledge, disseminate that knowledge within the organisation and transform it into valuable products or services is pertinent. Nevertheless, firms vary in terms of the ability to develop absorptive capacity. Accordingly, previous research investigates the antecedent of absorptive capacity, but very few have looked at the role of market orientation and the conditions that influence the relationship. Managerial Implications in the South East Asian Context: Interaction with foreign importers affects SME knowledge development. Functional conflict requires open dialogues to develop meaningful outputs; as such, SMEs in South East Asia should aim to build good connections with their overseas importers. Research Limitations & Implications: The limitations of this study include the small sample size, the external condition of Covid-19 that was not included in this study and the cross-sectional approach of data collection which did not capture the dynamic nature of the firm’s capability. Keywords: Absorptive Capacity, Exporter-Importer Relationship, Functional Conflict, Market Orientation, Malaysia, SMEs"

Knowledge Coupling and Organizational Resilience: The Moderating Effect of Market Orientation

This study conducts an empirical study on the relationship between knowledge coupling and organizational resilience based on the knowledge-based view. Meanwhile, market orientation is considered a moderating variable because of its role in this transmission mechanism. The hypotheses are tested through a survey of 359 Chinese manufacturing firms. The results show that both complementary knowledge coupling and substitutive knowledge coupling have significant positive impacts on organizational resilience, and the proactive market orientation positively moderates the relationship between complementary/substitutive knowledge coupling and organizational resilience, while the responsive market orientation negatively moderates the relationship between complementary knowledge coupling and organizational resilience. In the context of the current globalization of the COVID-19 epidemic, this study explores the critical factors needed to survive and develop by firms in adversity, which enriches the research on organizational resilience and market orientation theory and provides suggestions for firms’ strategic planning.

How market orientation affects open innovation? Exploring the role of information and communication technology capability

PurposeBased on the organizational learning theory, this study regards market orientation as market-based learning and seeks to advance insight into how proactive and responsive market orientations affect two kinds of open innovation strategies, sourcing and selling. A firm’s information and communication technology (ICT) capability is considered an essential moderator in these relationships.Design/methodology/approachThis study adopted a quantitative design and used the questionnaire survey method to collect data. The authors finally collected data on samples in China. Multiple regression analysis was used to test the hypotheses.FindingsThe results show that proactive and responsive market orientations act as antecedents of open innovation, showing linear and curvilinear relationships between them. Specifically, responsive market orientation positively affects selling, and proactive market orientation positively affects sourcing. Responsive market orientation has an inverted U-shaped relationship with sourcing, and proactive market orientation has a U-shaped relationship with selling. In addition, ICT capability strengthens the positive effects of market orientation on open innovation and weakens the negative effects.Originality/valueDrawing on organizational learning theory, this study provides a novel perspective to explain the complex mechanism between market orientation and open innovation. This study also explores the moderating role of ICT capability in this process, which advances research on how to select open innovation strategies under different conditions.

Service Dominant Logic and Market Orientation: A Case Study of Brazilian Agribusiness Firms

Abstract The purpose of this paper is to evaluate the Service Dominant Orientation (S-DO), Responsive Market Orientation (RMO) and Proactive Market Orientation (PMO) complementary effect on Brand Performance in the Brazilian agribusiness B2B context. We conducted a survey with 147 Brazilian agribusiness firms that sell supplies directly to farmers. The data were analysed through a three-model hierarchical regression analysis. The results indicated that S-DO complemented by PMO and RMO impacts and explains brand performance at more significant levels than S-DO by itself. The complementary effect is highlighted when firms give voice and partner up with their customers that leads the proactively innovative research based on their latent needs. The study allows agribusiness marketing managers to reflect on the insertion of the B2B customer in the firm’s value co-creation process through a guided innovative research process.

The Sustainability of Market Orientation from a Dynamic Perspective: The Mediation of Dynamic Capability and the Moderation of Error Management Climate

In a dynamic, highly competitive environment, corporate strategies need to be re-studied. Market orientation reflects a firm’s emphasis on creating customer value and is an important factor for firms to build competitive advantages, it is crucial to understand the mechanism of market orientation on firm performance in a dynamic environment. In contrast to previous studies, this study aims to explain the impact of different types of market orientation on firm performance, and has two major contributions. First, it demonstrates the relationship between responsive, proactive market orientation and performance from a dynamic perspective, as well as the influencing mechanism. Second, the boundary conditions of market orientation are defined from the perspective of organizational culture. Findings of this empirical study of 336 firms show that: (1) both responsive and proactive market orientation have a significant positive correlation with financial performance and growth performance; (2) dynamic capability mediates the influence of responsive market orientation on financial performance, but shows a “suppressing effect” on the influence of responsive market orientation on growth performance, and in the relationship between proactive market orientation, financial performance, and growth performance, the mediating effect both are significant; (3) error management climate positively moderates the influence of proactive market orientation on financial performance and growth performance.

Responsive Market Orientation: A Qualitative Research on Turkish Startup Companies

Responsive Market Orientation: A Qualitative Research on Turkish Startup Companies

Capabilities, market and new product performance in Brazilian technology-based firms

PurposeIt should be highlighted that innovation is related to the absorption of knowledge, dynamicity and market orientation, with these elements seeking to aid efficiency, increasing firms’ competitive advantage. This study aims to gauge the influence of absorptive capacity, dynamic capability and market orientation on new product performance in Brazilian technology-based firms.Design/methodology/approachThe study was characterized as quantitative, using primary data from Brazilian technology-based firms, as they are dynamic contexts that stimulate the absorption and exchange of knowledge and other organizational resources. It should be highlighted that this study received funding from the National Council for Scientific and Technological Development. The research hypotheses were empirically tested, confirming the relationship between dynamic capability and absorptive capacity, market orientation and new product performance.FindingsRegarding the empirical contribution of the research results, it could be argued that for the purpose of improving performance in innovation, reflected in new product performance, companies need to develop strategies that correspond to market demand. Furthermore, these empirical findings provide an integrating view of the constructs and identify the importance of companies anticipating and responding to the demands of their customers quickly so that they can enjoy better performance. Therefore, companies need to adjust their processes, resources and capabilities to obtain better results, and for this, the involvement of managers is fundamental because they are the only ones with the clout to stimulate such initiatives. This approach favors recognizing and valuing absorptive capacity and dynamic capabilities and helps to identify new constructs such as responsive and proactive market orientation, which need to be adequately developed by managers to create competitive advantages that stem from better new product performance.Research limitations/implicationsA limitation of the study is that it does not address a specific analysis of the sector in which the technology-based firms (TBFs) under study operate. No tests were conducted regarding whether it is possible to perceive different structural paths for absorptive capacity, market orientation, dynamic capability and new product performance according to the sector of the TBFs.Practical implicationsRegarding the empirical contribution of the research results, it could be argued that for the purpose of improving performance in innovation, reflected in new product performance, companies need to develop strategies that correspond to market demand. Furthermore, these empirical findings provide an integrating view of the constructs and identify the importance of companies anticipating and responding to the demands of their customers quickly so that they can enjoy better performance. Therefore, companies need to adjust their processes, resources and capabilities to obtain better results and, for this, the involvement of managers is fundamental because they are the only ones with the clout to stimulate such initiatives.Social implicationsOne of the main contributions of the study is that it provides an empirical demonstration that on its own absorptive capacity cannot boost new product performance. For this purpose, it needs to be combined with dynamic capabilities. Through this proposed model, it was possible to characterize the antecedent relationship of absorptive capacity and illustrate its relationship with dynamic capabilities. Another relevant theoretical contribution is the statistical proof of the positive relationship of both proactive and responsive market orientation with dynamic capability, and that dynamic capability has a positive influence on new product performance, which will generate better financial performance of TBFs.Originality/valueAs a contribution to the field, it was empirically demonstrated that on its own absorptive capacity cannot improve new product performance. For this to occur, it must be combined with dynamic capabilities. Through the proposed model, it is possible to characterize the antecedent relationship of absorptive capacity and illustrate its relationship with dynamic capability.

Effects of absorptive capacity and innovation spillover on manufacturing flexibility

PurposeShifting demand and ever-shorter production cycles pressure manufacturing flexibility. Although the literature has established the positive effect of the firm's absorptive capacity on manufacturing flexibility, the separate role of the innovation competencies of exploitation and exploration in such a relationship is still under-investigated. In this study, the authors examine how these competencies affect manufacturing flexibility.Design/methodology/approachThe authors use survey data from 370 manufacturing firms and analyze them using covariance-based structural equation modeling (CB–SEM).FindingsThe results indicate that absorptive capacity has a strong, positive and direct effect on exploitative and exploratory innovation competencies, proactive and responsive market orientations, and manufacturing flexibility. The authors’ findings also demonstrate that the exploitative innovation competencies mediate the relation between responsive market orientation and manufacturing flexibility. Essentially, these exploitative innovation competencies produce a direct positive effect on manufacturing flexibility while simultaneously being a vehicle for absorptive capacity's indirect effects on it. An exploration innovation strategy does not significantly affect manufacturing flexibility.Originality/valueThis study contributes by combining key strategic features of firms with manufacturing flexibility, while providing new empirical evidence of the mediation of the exploitative innovation competencies in the relation between responsive market orientation and manufacturing flexibility.

Peranan Orientasi Pasar dalam Hubungan Kinerja Perusahaan pada Industri Manufaktur di Solo Raya

This study aims to provide additional benefits to the literature on the role of market orientation on the performance relationship of manufacturing industrial companies in Solo Raya. This type of research is a causality study with a sample size of 100 respondents, which is obtained from 5 times the number of parameters (20). The research uses path analysis which has a direct or indirect effect. The results of this study indicate: 1) responsive market orientation has a significant positive effect on marketing performance, 2) proactive market orientation has a significant positive effect on marketing performance, 3) responsive market orientation has a significant positive effect on financial performance, 4) Complaint handling has no significant negative effect on financial performance, 5) Marketing performance has a significant positive effect on financial performance. The result of the direct effect of responsive market orientation on financial performance is smaller than the indirect effect. The direct effect of proactive market orientation on financial performance is smaller than the indirect effect. It shows that all are effective through direct channels without going through the mediating variable. https://doi.org/10.26905/jmdk.v8i2.4109

Strategic orientations, marketing proactivity and firm market performance

Guided by strategic orientations, firms must continuously deliver superior value in order to maintain a strong position in the market over the long-term. This study explores how two prominent strategic orientations (i.e., market and technological orientations) influence a firm's marketing proactivity and performance, with marketing proactivity being the key to delivering continuously superior value. Specifically, we examine how the cultural (i.e., a proactive market orientation) and the behavioral (i.e., market pioneering) dimensions of marketing proactivity, and the interaction between them, affects a firm's market performance. A structural equation modeling analysis of survey data from 109 firms shows that a proactive market orientation and market pioneering have a significant positive impact on the sales per employee and the growth rate of a firm. Our findings suggest that market pioneering strengthens the positive relationship between proactive market orientation and sales per employee and growth rate. A firm's technological orientation is positively related to both its proactive market orientation and market pioneering. However, the responsive market orientation of a firm only has a significant positive effect on proactive market orientation, and not on market pioneering. We discuss the theoretical and managerial implications of these findings.

Market orientation, strategic flexibility and business model innovation

PurposeThis study aims to investigate how market orientation (MO) motivates firms to develop business model innovation and how such effects are moderated by strategic flexibility.Design/methodology/approachIn this study, a questionnaire-based survey was undertaken to test the proposed hypotheses. The empirical study was conducted on a sample of 204 firms using two key informants (408 respondents) in China. The regression model is used to test the proposed model.FindingsThis research finds that both responsive market orientation (RMO) and proactive market orientation (PMO) have a positive effect on business model innovation. The effects of RMO and PMO on business model innovation are contingent on resource (coordination) flexibility in different ways. More importantly, this study finds that resource flexibility enhances the positive effect of RMO and weakens the positive effect of PMO. The study also finds that coordination flexibility enhances the positive effect of PMO.Research limitations/implicationsFuture research can explore the internal mechanisms through which RMO and PMO promote business model innovations. Although the study finds that both the MOs promote business model innovation, they may promote business model innovation through different mediating effects. Future research can explore the role of external dynamic capabilities. This research mainly focuses on the internal dynamic capability of focal firms. However, as a focal firm-centered boundary spanning activity system, to transform into a new business model, firms not only need to reconfigure internal resource base, but also need to realign external collaboration network.Practical implicationsThis research also bears important managerial implications. First, firms should be aware of the positive effect of MO on business model innovation. Firms with higher level of RMO or PMO can promote business model innovation. Second, when firms implement RMO for business model innovation, managers should focus on resource flexibility. Where MO is responsive, marketing managers need to be concerned with ensuring various applications of existing resource so as to understand effectively the current customers and market domain. Third, to leverage PMO for business model innovation, firms should adopt coordination flexibility. For firms with higher level PMO, firms should try to find the new internal coordination process for customer latent needs.Originality/valueThe conclusion extends the business model innovation research from the view of dynamic capabilities. As one of types of dynamic capabilities, MO is also the important antecedent of business model innovation. Further, this research also discusses the role strategic flexibility plays in business model innovation.

Market orientation, brand management processes and brand performance

PurposeThe purpose of this study is to investigate the manner in which market orientation types facilitate the development of brand management processes (strategic brand management and internal branding), and brand performance.Design/methodology/approachThe research model is assessed using data collected from brand executives. Existing scales are used to measure all the focal constructs. Partial least squares-based structural equation modeling (PLS-SEM) using the Smart-PLS 3.0 software is used to check for the psychometric properties of the scales and to test the hypotheses.FindingsThe results of this study indicate that proactive and reactive market orientation influence the internal branding and strategic brand management. The mediating role of strategic brand management in the relationship between proactive market orientation (PMO) and brand performance is significant. Similarly, internal branding mediates the relationship between PMO and brand performance. Also, strategic brand management and internal branding mediate the relationship between responsive market orientation (RMO) and brand performance. Results also indicate that market turbulence negatively moderates the relationship between strategic brand management and brand performance.Research limitations/implicationsBuilding on literature from brand management, organizational capabilities and market orientation, this study explicates the role of PMO and RMO in influencing different strategic brand management and internal branding, and subsequently, brand performance. The perspective used in this study provides an insight into how organizations can develop and manage brands from a process perspective.Practical implicationsTo develop the brand management capability, organizations may benefit from cultivating processes that seek to meet the latent customer needs through explorative and proactive information seeking, and at the same time, pursing processes that focus on capturing the existing customer and competitor trends in the market.Social implicationsThis study hopefully helps marketers realize that brand management function needs to move toward being more dynamic in nature.Originality/valueThis study borrows from the existing research on market orientation, branding and brand management to argue that organizations are required to not only maximize the brand returns in the existing market but also to adapt to the changes in the future.

Pure or ambidextrous strategy? A study of responsive and proactive market orientations in industrial firms

PurposeThe purpose of this study is to investigate the environmental conditions (i.e. competitive intensity) under which a pure strategy or an ambidextrous strategy of implementing responsive market orientations (RMOs) and/or proactive market orientations (PMOs) is more advantageous for firm’s performance.Design/methodology/approachDrawing upon the market orientation (MO) and strategy literatures, the authors test the study’s model empirically using a sample of 308 US-based firms operating in industrial markets. All measurement items are taken from the widely used maturity scale which has been confirmed in the literature.FindingsThe empirical results suggest that when the competitive intensity is high, pursuing a purity strategy of RMO while decreasing PMO is the best course of action. On the other hand, balancing between RMO and PMO (implementing a strategy of ambidexterity) can increase firm’s performance in a low competitive intensity environment.Research limitations/implicationsThis study aims to contribute to the existing MO literature in several ways: first, this study advances the MO literature by emphasizing the moderating role of competitive intensity on the effects of different MO strategies (purity or ambidextrous MO strategy); second, this study focuses on the firms operating in industrial markets and informs managers on how to adopt RMO and PMO under different level of competitive intensity; third, this study is the extended research of the prior study published in this journal (Wang et al., 2013), which examined the environmental antecedents of adopting RMO and PMO.Practical implicationsFirst, firms operating in industrial markets should increase RMO, while at the same time decrease PMO, in a highly competitive intensity environment. Second, companies should pursue both RMO and PMO at the same time in a low competitive intensity environment. Balancing between RMO and PMO can improve firms’ performance in a low competitive intensity environment.Originality/valueThis study contributes to the industrial business and marketing literature by sharpening the theoretical understanding of the impact of RMOs and PMOs on firm’s performance. It also offers practical insights to managers of industrial firms on when to adopt RMOs and/or PMOs under different levels of competitive intensity.

Innovation reliability and variability strategies: the importance of absorptive capacity to systemic outcomes

The role of absorptive capacity (AC) has been widely recognised in the innovation literature. This study examines the predictive role of AC for business performance, and evaluates the mediation of market orientation (responsive-proactive) and innovation competences orientation (exploitation-exploration) in that relationship. The findings show that innovation competence orientations are more important to business performance than market orientations and that innovation competences are better enhanced by AC than by market orientations. AC is not only confirmed as an antecedent of ambidextrous market and innovation competence orientation, but it also helps directly and indirectly to explain business performance. Responsive market orientation (REMKTOR) and innovation competence orientation mediate the positive relationship between AC and business performance. The intensity and significance of the indirect effects reveal the specific knowledge-transformative roles of market and innovation competences orientations. Firms seem to mitigate uncertainty by adjusting their preferences toward less risky innovation strategies.

Innovation reliability and variability strategies: the importance of absorptive capacity to systemic outcomes

The role of absorptive capacity (AC) has been widely recognised in the innovation literature. This study examines the predictive role of AC for business performance, and evaluates the mediation of market orientation (responsive-proactive) and innovation competences orientation (exploitation-exploration) in that relationship. The findings show that innovation competence orientations are more important to business performance than market orientations and that innovation competences are better enhanced by AC than by market orientations. AC is not only confirmed as an antecedent of ambidextrous market and innovation competence orientation, but it also helps directly and indirectly to explain business performance. Responsive market orientation (REMKTOR) and innovation competence orientation mediate the positive relationship between AC and business performance. The intensity and significance of the indirect effects reveal the specific knowledge-transformative roles of market and innovation competences orientations. Firms seem to mitigate uncertainty by adjusting their preferences toward less risky innovation strategies.

Understanding the Cultural Factors to Build Innovation in Organizations

Radical Innovation is the key for organizations to reinvent themselves and becoming successful in competitive international markets. Compared to other types of innovation such as incremental which focuses on customers’ immediate needs, radical innovation offers a company unprecedented customer benefits and the ability to create new businesses and markets. Research from literature has shown that cultural factors play an important role in the successful integration of radical innovation efforts. Using the Adhocracy component within the Competing Values Framework moderated by market orientation, we developed a testable model of the relationship among 4 cultural factors and radical innovation. The 4 cultural areas are commitment to learning, shared vision, Open mindedness using responsive market orientation as a moderator. The study included a pilot of 50 participants followed by the main study that included 187 participants across different organizations and worldwide locations. We did a hierarchical linear regression in order to examine both the direct and moderated effects of the predictors on the outcome. With the exception of open mindedness, the results show a positive relationship among the variables. Proactive Market Orientation does not have a negative effect on radical innovation. Noting the fact that the organizational context differs with companies, the insights from the analysis will be used as recommendations for interventions to increase the innovation levels in multiple organizations.

Proactive or responsive market orientation for stronger service innovation capability: the moderating roles of contractual and relational governance

Purpose Based on the business-to-business context in the service industry, this study aims to address two balancing problems that a supplier firm may face in an integrated framework: the trade-off between the two-dimensional market orientations (MO) (i.e. proactive and responsive MO) and the trade-off between two categories of governance mechanisms (i.e. contractual governance [CG] and relational governance [RG]). In doing so, the contingent effects of the governance mechanisms on the relationships between two-dimensional MO and service innovation capability (SIC) are empirically examined and tested. Design/methodology/approach A dyadic questionnaire survey of 168 services outsourcing firms’ project managers and strategy managers was used to collect data, which was then used to test the hypotheses by conducting hierarchical regression analysis. Findings It was observed that CG weakens the positive relationship between proactive MO (PMO) and SIC, while the positive impact of responsive MO (RMO) on SIC is strengthened. By contrast, RG plays an inverted U-shaped moderating role in the positive relationship between PMO and SIC. Nevertheless, the hypothesis that RG has an inverted U-shaped moderating effect on the effectiveness of RMO is not supported. Originality/value Drawing on transaction cost economics and relational exchange theory, this study contributes to the existing literature on MO by revealing how CG and RG differentially shape the value of PMO and RMO.

Nonlinear and complementary effects of responsive and proactive market orientation on firms’ competitive advantage

PurposeThe purpose of this paper is to clarify how responsive market orientation (RMO) and proactive market orientation (PMO) create competitive advantage.Design/methodology/approachNonlinear and interaction effects are tested by applying hierarchical regression analysis to a sample of 272 Colombian manufacturing companies.FindingsThe results show that although market orientation promotes the competitive advantage of a business, both approaches – responsive and proactive – exhibit saturation effects and a positive interaction.Research limitations/implicationsThe main limitation of this study is the cross-sectional design and the use of a single source for data collection. It is suggested that future research includes different orientations combined with these two market orientations – responsive and proactive – for achieving competitive advantage. In addition, further studies could replicate this analysis for different environmental conditions.Originality/valueThis paper simultaneously evaluates the nonlinear and complementary effects of RMO and PMO. From a strategic standpoint, it presents an empirical confirmation of the familiarity trap, the failure trap and the positive effects of combining RMO and PMO.

Exploring the Mediating Effect of Responsive Market Orientation between the Relationship of Entrepreneurial Orientation and Firm Performance

The purpose of this paper is to investigate the mediating effect of responsive market orientation (RMO) on the relationship between entrepreneurial orientation (EO) and performance in small and medium-size enterprises (SMEs) in Oman. The study specifically investigates whether there is a mediating effect of responsive market orientation in the hypothesized relationships. A field survey was used to collect data from 175 SMEs. Structural equation modelling (SEM) was used to conduct a confirmatory factor analysis and Andrew Hay’s process macro was used to compute the mediating effect of RMO on the relationship between EO and SME’s performance. While the results indicate a significant relationship between entrepreneurial orientation and performance, responsive market orientation was found to be the mediator in the relationship (i.e. between EO and performance). The study underscores the importance of entrepreneurial and responsive market orientation for managers and owners of SMEs in Oman in order to compete and grow in regional market of GCC.