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Market orientation, knowledge competence, and innovation

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  • Ozkaya, H. Erkan
  • Droge, Cornelia
  • Hult, G. Tomas M.
  • Calantone, Roger
  • Ozkaya, Elif

Abstract

This study focuses on two dimensions of market orientation and the corresponding dimensions of market knowledge competence: i.e., the customer and competitor dimensions. We examine whether customer and competitor orientations are transmuted into market-based innovation either directly, or through customer and competitor knowledge competencies indirectly. The findings support that knowledge competencies are indeed mediators of the positive relationships between orientations and market-based innovation. Also, market-based innovation mediates the positive relationships between customer and competitor knowledge competencies and overall firm performance. A cross-country comparison reveals that, in the U.S. as compared to Chinese firms, customer (or competitor) orientation leads to both higher customer (or competitor) knowledge competence and enhanced market-based innovations; in other words, the model's relationship strengths are greater in U.S. firms, indicating that they are better able to leverage customer (or competitor) orientation to obtain performance consequences.

Suggested Citation

  • Ozkaya, H. Erkan & Droge, Cornelia & Hult, G. Tomas M. & Calantone, Roger & Ozkaya, Elif, 2015. "Market orientation, knowledge competence, and innovation," International Journal of Research in Marketing, Elsevier, vol. 32(3), pages 309-318.
    • Handle: RePEc:eee:ijrema:v:32:y:2015:i:3:p:309-318
    DOI: 10.1016/j.ijresmar.2014.10.004
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