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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, vol. 29(8), pages 752-772, November.
  • Handle: RePEc:eme:ijmpps:v:29:y:2008:i:8:p:752-772
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Chee-Yang Fong, 2011. "HRM practices and knowledge sharing: an empirical study," International Journal of Manpower, Emerald Group Publishing, vol. 32(5/6), pages 704-723, August.
    2. 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.
    3. Marina Dabic, 2011. "Human resource management in entrepreneurial firms: a literature review," International Journal of Manpower, Emerald Group Publishing, vol. 32(1), pages 14-33, March.
    4. 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.
    5. 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, pages 484-491.
    6. 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.
    7. repec:hur:ijarbs:v:7:y:2017:i:7:p:356-365 is not listed on IDEAS
    8. Zgrzywa-Ziemak Anna, 2015. "The Impact of Organisational Learning on Organisational Performance," Management and Business Administration. Central Europe, De Gruyter Open, vol. 23(4), pages 98-112, December.
    9. 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.
    10. 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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