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Market orientation, innovation, and firm performance—an analysis of Albanian firms

Author

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  • Rezart Prifti

    (University of Tirana)

  • Genc Alimehmeti

    (University of Tirana)

Abstract

The purpose of this paper is to analyze the concept of market orientation as an outer source of innovation for organizations in the context of Albania. We investigate the market orientation relation with innovation and firm performance by analyzing a sample of 99 companies operating in Albania. The relationships and the impact of market orientation on innovation and performance is tested empirically through structural equation modeling techniques (SEM). The analysis confirms prior theoretical and empirical findings in developed economies, however, it gives way to some contextual interpretations. The implications of this study are considerable in academia and in managerial purposes. In academia, considering that there is no research in Albania on the topic of us being aware of, nevertheless, we identify the need for deeper and wider research, especially with bigger sample sizes, industry-specific, and across industries to grasp more about market reality. On managerial account, its relevance relies in the distinction of market orientation construct and the right division of components within the company, and the adequate approach toward intelligence generation, dissemination, and reaction on it by responding to market needs and competition with innovative products and services.

Suggested Citation

  • Rezart Prifti & Genc Alimehmeti, 2017. "Market orientation, innovation, and firm performance—an analysis of Albanian firms," Journal of Innovation and Entrepreneurship, Springer, vol. 6(1), pages 1-19, December.
    • Handle: RePEc:spr:joiaen:v:6:y:2017:i:1:d:10.1186_s13731-017-0069-9
    DOI: 10.1186/s13731-017-0069-9
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    3. Asef Karimi & Mahmood Ahmadpour Daryani & Soma Rahmani, 2021. "The influence of entrepreneurial orientation on firm growth among Iranian agricultural SMEs: the mediation role of entrepreneurial leadership and market orientation," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 519-531, December.
    4. Dawit Tsegaye Sisay & Frans J. H. M. Verhees & Hans C. M. Trijp, 2023. "Market orientation practices of Ethiopian seed producer cooperatives," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    5. Ali Sher & Saman Mazhar & Azhar Abbas & Muhammad Amjed Iqbal & Xiangmei Li, 2019. "Linking Entrepreneurial Skills and Opportunity Recognition with Improved Food Distribution in the Context of the CPEC: A Case of Pakistan," Sustainability, MDPI, vol. 11(7), pages 1-22, March.
    6. Leo Huang & Kuang-Yu Chang & Yu-Chen Yeh, 2020. "How Can Travel Agencies Create Sustainable Competitive Advantages? Perspective on Employee Role Stress and Initiative Behavior," Sustainability, MDPI, vol. 12(11), pages 1-15, June.
    7. Samuel Godadaw Ayinaddis, 2023. "The effect of innovation orientation on firm performance: evidence from micro and small manufacturing firms in selected towns of Awi Zone, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-19, December.
    8. Olalekan Asikhia & Vannie Naidoo, 2020. "SMEs Management Success Determinants and its Implications on Their Performance in South West, Nigeria," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 1057-1072.
    9. Natenapang Thongsri & Alex Kung-Hsiung Chang, 2019. "Interactions Among Factors Influencing Product Innovation and Innovation Behaviour: Market Orientation, Managerial Ties, and Government Support," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    10. Musaab Mousa & Saeed Nosratabadi & Judit Sagi & Amir Mosavi, 2021. "The Effect of Marketing Investment on Firm Value and Systematic Risk," Papers 2104.14301, arXiv.org.

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    More about this item

    Keywords

    Innovation; Market orientation; Intelligence generation; Intelligence dissemination; Performance;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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