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

Author

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  • Chien‐Huang Lin
  • Ching‐Huai Peng
  • Danny T. Kao

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.

Suggested Citation

  • Chien‐Huang Lin & Ching‐Huai Peng & Danny T. Kao, 2008. "The innovativeness effect of market orientation and learning orientation on business performance," International Journal of Manpower, Emerald Group Publishing Limited, vol. 29(8), pages 752-772, November.
    • Handle: RePEc:eme:ijmpps:v:29:y:2008:i:8:p:752-772
    DOI: 10.1108/01437720810919332
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    Citations

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    Cited by:

    1. S. Yaakub* & N. A. H. Nik Abdullah, 2018. "The Moderating Effects of Logistics and Supply Chain Issues on the Relationship Between Organisational Innovations, Entrepreneurial Orientation and Market Orientation of Smes in Malaysia," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 973-985:6.
    2. 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 Limited, vol. 32(5/6), pages 704-723, August.
    3. Zhenia Tahmasebinia & Aliakbar Jokar & Amir Mohebi & Sogand Fardmehregan & Mehdi Beigi & Foozhan Tahmasebinia, 2022. "A Study on the Impact of Market and Strategic Orientations on Business Performance by Emphasizing the Role of Innovation as a Mediator," Business Management and Strategy, Macrothink Institute, vol. 13(2), pages 67-84, December.
    4. Pilar Fidel & Walesska Schlesinger & Esposito Emilo, 2018. "EFFECTS OF CUSTOMER KNOWLEDGE MANAGEMENT AND CUSTOMER ORIENTATION ON INNOVATION CAPACITY AND MARKETING RESULTS IN SMEs: THE MEDIATING ROLE OF INNOVATION ORIENTATION," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-26, October.
    5. Dev K. Dutta & Vishal K. Gupta & Xiujian Chen, 2016. "A Tale of Three Strategic Orientations: A Moderated-Mediation Framework of the Impact of Entrepreneurial Orientation, Market Orientation, and Learning Orientation on Firm Performance," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 313-348, September.
    6. M. Mohd Rosli & Rosman Mahmood, 2013. "Moderating Effects of Human Resource Management Practices and Entrepreneur Training on Innovation and Small-Medium Firm Performance," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 4(2), pages 60-69, May.
    7. Marina Dabić & Marta Ortiz‐De‐Urbina‐Criado & Ana M. Romero‐Martínez, 2011. "Human resource management in entrepreneurial firms: a literature review," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(1), pages 14-33, March.
    8. 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.
    9. Nuryakin & Vincent Didiek Wiet Aryanto & Mulyo Budi Setiawan, 2018. "Mediating effect of value creation in the relationship between relational capabilities on business performance," Contaduría y Administración, Accounting and Management, vol. 63(1), pages 33-34, Enero - M.
    10. Turulja Lejla & Bajgorić Nijaz, 2018. "Knowing Means Existing: Organizational Learning Dimensions and Knowledge Management Capability," Business Systems Research, Sciendo, vol. 9(1), pages 1-18, March.
    11. Atkočiūnienė Zenona & Praspaliauskytė Greta, 2018. "The Influence of Intellectual Capital and Knowledge Management on Organizational Performance in Lithuanian Software Companies," Ekonomika (Economics), Sciendo, vol. 97(2), pages 106-120, December.
    12. Baker, William E. & Mukherjee, Debmalya & Gattermann Perin, Marcelo, 2022. "Learning orientation and competitive advantage: A critical synthesis and future directions," Journal of Business Research, Elsevier, vol. 144(C), pages 863-873.
    13. Camelia-Beatrice MAEREAN & Eugen ALBU, 2019. "Befriending Innovation €“ From Entrepreneurial Vision To Public Policy," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 499-507, November.
    14. Palacios-Marqués, Daniel & Gallego-Nicholls, José Fernando & Guijarro-García, María, 2021. "A recipe for success: Crowdsourcing, online social networks, and their impact on organizational performance," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
    15. Rayees Farooq & Sandeep Vij, 2019. "Does Market Orientation Mediate between Knowledge Management Orientation and Business Performance?," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 18(04), pages 1-35, December.
    16. Wilson, Grant Alexander & Case, Tyler & Dobni, C. Brooke, 2023. "A global study of innovation-oriented firms: Dimensions, practices, and performance," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    17. Aris Tri Haryanto & Tulus Haryono & Hunik Sri Runing Sawitri, 2017. "Market Orientation, Learning Orientation and Small Medium Enterprises Performance:The Mediating Role of Innovation," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 484-491.
    18. 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.
    19. Amal Alnamrouti & Husam Rjoub & Hale Ozgit, 2022. "Do Strategic Human Resources and Artificial Intelligence Help to Make Organisations More Sustainable? Evidence from Non-Governmental Organisations," Sustainability, MDPI, vol. 14(12), pages 1-23, June.
    20. Hasan Ali Al-Zu’bi & Mustafa Suleiman Al-Nawasrah, 2017. "Analyzing the Impact of Strategic Thinking Competencies in Building Intelligent Organization," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(7), pages 356-365, July.
    21. María del Rosario Demuner-Flores & Alejandro Delgado-Cruz & Elva Esther Vargas-Martínez, 2022. "Innovación y rendimiento: relación mediada por la orientación al aprendizaje y al mercado en empresas mexicanas," Estudios Gerenciales, Universidad Icesi, vol. 38(162), pages 82-94, March.
    22. 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.
    23. Sema Yigit & Kadir Aksay, 2015. "A Comparison between Generation X and Generation Y in Terms of Individual Innovativeness Behavior: The Case of Turkish Health Professionals," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 6(2), pages 106-117, March.
    24. Rizwan Ullah Khan & Yashar Salamzadeh & Hiroko Kawamorita & Gabor Rethi, 2021. "Entrepreneurial Orientation and Small and Medium-sized Enterprises’ Performance; Does ‘Access to Finance’ Moderate the Relation in Emerging Economies?," Vision, , vol. 25(1), pages 88-102, March.
    25. Pratono, Aluisius Hery & Mahmood, Rosli, 2014. "The Moderating Effect of Environmental Turbulence in the Relationship between Entrepreneurial Management and Firm Performance," MPRA Paper 58493, University Library of Munich, Germany.

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