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The moderating role of reward systems in the relationship between market orientation and new product performance in China

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  • Wei, Yinghong (Susan)
  • Atuahene-Gima, Kwaku

Abstract

Extant studies concerning the relationship between market orientation and new product performance have produced inconclusive results. Drawing on the contingency theory, the authors argue that one reason for these mixed results may be the lack of an appropriate reward system within the new product development process. This study theoretically and empirically examines the moderating role of reward systems in the relationship between market orientation and new product performance. The authors conducted interviews and surveys in China. The moderating effects suggest that Chinese firms should simultaneously use both a high-level, long-term-oriented reward system and a low-level, risk-taking reward system in order to enhance the positive effects of market orientation on new product performance. The results provide a more refined understanding of how the interplay between marketing and human resource management influences the implementation of market orientation and new product innovation.

Suggested Citation

  • Wei, Yinghong (Susan) & Atuahene-Gima, Kwaku, 2009. "The moderating role of reward systems in the relationship between market orientation and new product performance in China," International Journal of Research in Marketing, Elsevier, vol. 26(2), pages 89-96.
  • Handle: RePEc:eee:ijrema:v:26:y:2009:i:2:p:89-96
    DOI: 10.1016/j.ijresmar.2008.11.001
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    Cited by:

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    2. K. Sivakumar & Subroto Roy, 2019. "Global new product development: moderating role of national culture on the link between buyer–seller interactions and innovation outcomes," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 205-229, December.
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    7. Abdul Qadir Rahomee & Dileep Kumar M, 2014. "The Mediating Role of Absorptive Capacity in Its Effect on Organizational Support Factors and Technological Innovation," Information Management and Business Review, AMH International, vol. 6(1), pages 25-41.
    8. Wang, Liwen & Zhao, Jane Zheng & Zhou, Kevin Zheng, 2018. "How do incentives motivate absorptive capacity development? The mediating role of employee learning and relational contingencies," Journal of Business Research, Elsevier, vol. 85(C), pages 226-237.
    9. Bhandari, Krishna Raj & Rana, Sudhir & Paul, Justin & Salo, Jari, 2020. "Relative exploration and firm performance: Why resource-theory alone is not sufficient?," Journal of Business Research, Elsevier, vol. 118(C), pages 363-377.
    10. 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.
    11. Mahmoud M. Migdadi & Mohammed K. Abu Zaid & Mohammed Yousif & Ra’d Almestarihi & Khalil Al-Hyari, 2017. "An Empirical Examination of Knowledge Management Processes and Market Orientation, Innovation Capability, and Organisational Performance: Insights from Jordan," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 1-32, March.
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