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The innovativeness effect of market orientation and learning orientation on business performance

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  • Chien-Huang Lin
  • Ching-Huai Peng
  • Danny T. Kao
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    Abstract

    Purpose – The purpose of this paper is to provide a quantitative analysis, in which learning orientation, market orientation, entrepreneurial orientation, and innovativeness function as key success factors in technology-intensive firms. The authors formulate a structural equation model to examine the relationship among these constructs. Design/methodology/approach – A structural equation model was designed to examine the relationship. To test the model, the authors conducted covariance structural analyses of data collected from 333 venture companies, including innovation companies, in Taiwan. Findings – The central finding is that learning orientation plays a full mediating role in the relationship between market orientation and innovativeness. The results indicate that organizational structure (formalization and decentralization) does not play a moderating role in the relationship between innovativeness and business performance; however, the extent of formalization of an organizational structure negatively correlates with business performance. Practical implications – Market orientation can strengthen innovativeness via organizational learning. In the high-tech industry, the market information obtained from customers and competitors helps firms to keep an eye on the market. For better competitive advantages and business performance, firms must have learning capabilities and employees' identity with corporate mission. Originality/value – The research empirically examines the mediating role of learning orientation and the moderating role of organizational structure in the model. The findings indicate that firms should strengthen their learning orientation and innovativeness, and avoid interfering in the organizational structure to improve business performance.

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

    Volume (Year): 29 (2008)
    Issue (Month): 8 (November)
    Pages: 752-772

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    Handle: RePEc:eme:ijmpps:v:29:y:2008:i:8:p:752-772

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    Related research

    Keywords: Entrepreneurialism; Innovation; Learning methods; Market orientation; Organizational structures;

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    Cited by:
    1. Marina Dabic & Marta Ortiz-De-Urbina-Criado & Ana M. Romero-Martínez, 2011. "Human resource management in entrepreneurial firms: a literature review Purpose – This paper seeks to review the literature on human resource management (HRM) in entrepreneurial firms. Given the imp," International Journal of Manpower, Emerald Group Publishing, vol. 32(1), pages 14-33, March.
    2. Carmen Bălan & Daniela Ioniţă, 2011. "Exploratory Research on the Organizational Learning in Small Enterprises and Implications for the Economic Higher Education," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(30), pages 464-481, June.
    3. Chee-Yang Fong & Keng-Boon Ooi & Boon-In Tan & Voon-Hsien Lee & Alain Yee-Loong Chong, 2011. "HRM practices and knowledge sharing: an empirical study," International Journal of Manpower, Emerald Group Publishing, vol. 32(5/6), pages 704-723, September.
    4. Santos-Vijande, María Leticia & del Río-Lanza, Ana Belén & Suárez-Álvarez, Leticia & Díaz-Martín, Ana María, 2013. "The brand management system and service firm competitiveness," Journal of Business Research, Elsevier, vol. 66(2), pages 148-157.
    5. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.

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