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Market information approaches, product innovativeness, and firm performance: An empirical study in the fashion industry


  • Cillo, Paola
  • De Luca, Luigi M.
  • Troilo, Gabriele


In this study the authors propose a distinction between two approaches to market information, rooted in the marked-based learning theory. The two approaches are conceptualized and operationalized on the basis of their differences along three processes: generation, dissemination and use of market information. In the retrospective approach, the generation process is based on expressed customer needs and extant market relations; the dissemination is based on formal mechanisms; the use process is more instrumental. In the forward-looking approach, the generation process is based on latent customer needs and on the evolutionary patterns of the future market relations; the dissemination process is more informal; the use of information is more conceptual. A series of hypotheses concerning the relationships between these approaches, product innovativeness and firm performance are tested on a sample of Italian fashion firms. Results suggest that the two approaches are complementary for firm performance, but have opposite effects on product innovativeness: while a forward-looking approach is positively related to product innovativeness, a retrospective approach seems to be negatively related. The results also shed light on how market information approaches and product innovativeness jointly affect firm performance.

Suggested Citation

  • Cillo, Paola & De Luca, Luigi M. & Troilo, Gabriele, 2010. "Market information approaches, product innovativeness, and firm performance: An empirical study in the fashion industry," Research Policy, Elsevier, vol. 39(9), pages 1242-1252, November.
  • Handle: RePEc:eee:respol:v:39:y:2010:i:9:p:1242-1252

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    References listed on IDEAS

    1. Pesendorfer, Wolfgang, 1995. "Design Innovation and Fashion Cycles," American Economic Review, American Economic Association, vol. 85(4), pages 771-792, September.
    2. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. " A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Oxford University Press, vol. 30(2), pages 199-218, September.
    3. Atuahene-Gima, Kwaku, 1996. "Market orientation and innovation," Journal of Business Research, Elsevier, vol. 35(2), pages 93-103, February.
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    Cited by:

    1. Macchion, Laura & Moretto, Antonella & Caniato, Federico & Caridi, Maria & Danese, Pamela & Vinelli, Andrea, 2015. "Production and supply network strategies within the fashion industry," International Journal of Production Economics, Elsevier, vol. 163(C), pages 173-188.
    2. Herhausen, Dennis, 2016. "Unfolding the ambidextrous effects of proactive and responsive market orientation," Journal of Business Research, Elsevier, vol. 69(7), pages 2585-2593.
    3. Patrick Spieth & Sabrina Schneider, 2016. "Business model innovativeness: designing a formative measure for business model innovation," Journal of Business Economics, Springer, vol. 86(6), pages 671-696, August.
    4. Caniato, Federico & Caridi, Maria & Moretto, Antonella & Sianesi, Andrea & Spina, Gianluca, 2014. "Integrating international fashion retail into new product development," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 294-306.
    5. Zhang, Hao & Liang, Xiaoning & Wang, Shiquan, 2016. "Customer value anticipation, product innovativeness, and customer lifetime value: The moderating role of advertising strategy," Journal of Business Research, Elsevier, vol. 69(9), pages 3725-3730.


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