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The impact of market-based assets on innovativeness and business performance

Author

Listed:
  • Sami Kajalo
  • Arto Rajala
  • Matti Tuominen

Abstract

This study examines the influence of market-based assets on innovativeness and business performance. The concept of market-based assets builds on the resource-based view (RBV) of the firm. Despite several recent studies, empirical evidence of the dependencies between market-based assets and innovativeness remains scarce. Based on existing literature, this paper identifies three distinct market-based assets: customer-based assets, channel-based assets and partner-based assets. In particular, the study investigates the effects of these assets on both product innovativeness and business process innovativeness, and on business performance in terms of effectiveness and efficiency. The data are from 5,627 firms from 13 countries analysed using structural equation modelling. The results show that the three market-based assets affect product innovativeness more strongly than business process innovativeness. The results show that market-based assets and innovativeness are key drivers of business performance.

Suggested Citation

  • Sami Kajalo & Arto Rajala & Matti Tuominen, 2016. "The impact of market-based assets on innovativeness and business performance," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 11(4), pages 584-596.
    • Handle: RePEc:ids:ijbire:v:11:y:2016:i:4:p:584-596
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