Market Orientation and Innovators’ Success: an Exploration of the Influence of Customer and Competitor Orientation

Michael Lewrick, Maktoba Omar, Robert L. Williams, Jr.

Abstract


The concepts of market orientation and innovation and their interrelationship with business success have been explored from a number of perspectives. However, research in this area has not explored the differences between start-up and mature companies. The research study acquired data from over two hundred Chief Operating Officers (CEO’s) and Managing Directors from both start-up and mature companies. The results illustrate the differences in both types of company and reveals new insights with regard to market orientation and its constituent elements and its relationship with both incremental and radical innovations. Key research results are that strong competitor orientation, a key ingredient of market orientation, has positive relationship to incremental innovation for start-up companies but it is contra productive for mature companies. In mature organizations a strong customer orientation is associated with radical innovation.

Keywords


Innovation, Market Orientation, Customer Orientation, Competitor Orientation

Full Text:

PDF [en]

References


AUDRETSCH, D. (2001), "Research Issues Relating to Structure, Competition, and Performance of Small Technology-Based Firms," Small Business Economics, 16, 1, 37-51.

BARNEY, J. (1991), "Firm Resources and Sustained Competitive Advantage,"Journal of Management, 17, 99-120.

BENNETT, R. C. and Cooper, R. (1979), "Beyond the Marketing Concept", Business Business Research, 35, 93-103.

BIGLIARDI, B., Colacino, P. and Dormio, A. (2011), Innovative Characteristics of Small and Medium Enterprises, Journal of Technology Management & Innovation, Vol 6, No 2, pp. 83-93.

CANO, C.R., Carrillat, F. and Jaramillo, F. (2004), "A Meta-Analysis of the Relationship between Market Orientation and Business Performance: Evidence from Five Continents," International Journal of Research in Marketing, 21, 179-100.

CLAYTON C, and Bower, J. (1996), "Customer Power, Strategic Investment, and Failure of Leading Firms," Strategic Management Journal, 17, 197-218.

COHEN, W. M and Klepper, S. (1992), "The Trade off between Firm Size and Diversity in the Pursuit of Technological Progress," Small Business Economics, 4, 1, 1-14.

DESHPANDÉ, R. (1999) Developing a Market Orientation. Thousand Oaks, CA: Sage Publications.

DRUCKER, P. (1954), The Practice of Management. New York: Harper.

GAINER, B. and Padanyi, P. (2005), "The Relationship between Market-Oriented Activities and Market-Oriented Culture: Implications for the Development of Market Orientation in non-Profit Service Organizations," Journal of Business Research, 58, 854-862

GATIGNON, H., Tushman, M., and Anderson, W. (2002), "A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type, and Characteristics," Management Science, Vol. 48, 1103-1122

GATIGNON, H. and Xuereb, J-M (1997), "Strategic Orientation of the Firm and New Product Performance," Journal of Marketing Research, XXXIV, 77-90

GIANNOPOULOU, E. Ystròm, A., Ollila, S; Fredberg, T; and Elmquist, T. (2010), Implications of Openness: A Study into (All) the Growing Literature on Open Innovation, Journal of Technology Management & Innovation, Vol. 3, No. 3, pp.162-180

GREENLY, G. E. (1995), "Forms of market orientation in UK companies," Journal of Management Studies, 32, 1, 47-66

HAN, J., Kim, N. and Srivastava, R. (1998), "Market Orientation and Organizational Performance: Is Innovation a Missing Link?" Journal of Marketing, 62, 30-45

HOOLEY, G., Cox, T., Fahy, J., Shipley, D. Beracs, J.; Fonfara, K. and Snoj, B. (2000) "Market Orientation in the Transition Economies of Central Europe: Tests of the Narver and Slater Market Orientation Scales," Journal of Business Research, 50, (December), 273-285

HULT, G. T.; Ketchen, D. J. Slater, S. F. (2005), Market Orientation and Performance: An Integration of Disparate Approaches, Strategic Management Journal, 26, 1173-1181

HUNT, S. and Lambe, J (2000), "Marketing's contribution to business strategy: market orientation, relationship marketing and resource-advantage theory," International Journal of Management Reviews, 2, 1, 17-43

HURLEY, R. F. and Hult, T. (1998), "Innovation, Market Orientation and Organizational Learning: An Integration and Empirical Examination," Journal of Marketing 62, (July), 42-54

HYVONEN, S. and Tuominen, M. (2006), "Entrepreneurial Innovations, Market-Driven Intangibles and Learning Orientation: Critical Indicators for Performance Advantages in SMEs," International Journal of Management and Decision Making, 7, 6, 643-660

JAWORSKI, B.J. and Kohli, A. (1993), " Market Orientation: Antecedents and Consequences", Journal of Marketing," 57, (July), 53-70

KAHN, K. B. (2001), "Market Orientation, Interdepartmental Integration, and Product Development Performance," Journal of Product Innovation Management, 18, 5, 314-23

KARA, A., Spillan, J.E. and Oscar W. D. (2005), "The Effect of a Market Orientation on Business Performance: A study of Small-Sized Service Retailers using MARKOR scale," Journal of Small Business Management, 43, 2, 105-18

KIM, C. and Mauborgne, R. (2005), Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant, Boston: Harvard Business School Press

KIMBERLY, J. R. and Evanisko, J.. (1981), "Organizational Innovation: The influence of Individual, Organizational, and Contextual Factors on Hospital Adoption of Technological and Administrative Innovations," Academy of Management Journal, 24 (Dec), 689-713

KOHLI, Ajay K. and Jaworski, B. (1990), "Market Orientation: The Construct, Research Propositions, and Managerial Implications", Journal of Marketing, 54 (April), 1-8

KWAKU ATUAHENE-GIMA (1996), "Market Orientation and Innovation", Journal of Business Research, 35, 93-103

KWAKU ATUAHENE-GIMA (2005), "Resolving the Capability-Rigidity Paradox in New Product Innovation," Journal of Marketing, 69 (October), 61-83

KWAKU ATUAHENE-GIMA; Slater, S. and Olson, E.M. (2005), "The Contingent Value of Responsive and Proactive Market Orientations on New Product Program Performance" Journal of Product Innovation Management 22 (6), 464-482

LANGERAK, F. (2001), "Effects of Market Orientation on the Behaviours of Salespersons and Purchasers, Channel Relationship, and the Performance of Manufacturers," International Journal of Research in Marketing, 18, (September), 221-234

LAWTON, L. and Parasuraman, A., (1980), "The Impact of the Marketing Concept on New Product Planning," Journal of Marketing, 44, 19-25

LEONARD-BARTON, D. and Doyle, J.L. (1996), "Commercializing Technology: Imaginative Understanding of User Needs," in Engines of Innovation, Richard S. Rosenbloom and William J. Spencer, eds. Boston, Harvard Business School Press, 177-208

LEVITT, Theodore (1960), Marketing Myopia, Harvard Business Review, 38, 4, 45-57

LEWRICK, M. (2004), "Customer Relationship Management: Applying Relationship Management to Deliver More Value to Clients and Partners of the Automotive Industry Development Centre in South Africa," masters dissertation, Bristol Business School

LEWRICK, M. (2007), "Changes in Innovation Styles: Comprehensive Study of the Changes in Innovation Styles to Identify the Causes and Effects of Different Influencing Factors and Capabilities to Create a General Innovation Pattern" doctoral dissertation, Edinburgh Napier University Business School, Edinburgh Napier University

LEWRICK, M. (2009) Introduction of an Evaluation Tool to Predict the Probability of Success of Companies: The Innovativeness, Capabilities and Potential Model (ICP), Journal of Technology Management & Innovation, Vol. 4, No. 1, pp.33-47

LUKAS, B. and Ferrell, O. (2000), "The Effect of Market Orientation on Product Innovation." Journal of the Academy of Marketing Science, 28(2), 239-247

NARVER, C. and Stanley F. (1990), "The Effect of a Market Orientation on Business Profitability," Journal of Marketing, 54, (October), 20-35

ROSANNA, G. and Calantone, R. (2002) "A critical look at technological innovation typology and innovativeness terminology: A literature review", Journal of Product Innovation Management, March, 19(2): 110-132

ROBINSON, R. Jr., and Pearce, J (1984), "Research Thrusts in Small Firm Strategic Planning," Academy of Management Review, 9 (1), 128-137

RUEKERT, Robert W. (1992), "Developing a Market Orientation: An Organizational Strategy Perspective," International Journal of Research in Marketing, 9, 225-245

SLATER, S. and Narver, C. (1994), "Marketing Orientation, Customer Value and Superior Performance," Business Horizons, 37, 22-28

TAREK, S. and Bain, C. (1990), "Making Small Business Planning Easier: Microcomputers Facilitate the Process," Journal of Accountancy, 170, 1, 53-58

TIDD, J., Bessant, J. and Pavitt, K. (2003), Managing Innovation, Chichester: John Wiley and Sons

UTTERBACK, M. (1974) "Innovation and the Diffusion of Technology," Science, 83, 4125, (February), 620-626

UTTERBACK, M. (1996), Mastering the Dynamics of Innovation. Boston, MA: Harvard Business School Press

VERBEES, F. and Meulenberg, M.T. (2004) "Market Orientation, Innovativeness, Product Innovation, and Performance in Small Firms," Journal of Small Business Management, 42, 2, 134 - 154

VON HIPPEL, E. (2005), Democratizing Innovation, Cambridge MA: The MIT Press.

WILLIAMS, R., Omar, M. and Ensor, J. (2011), "Sourcing and Selling: The Value Flame at the Base of the Pyramid", Marketing Intelligence & Planning, Vol. 29, No.3

WREN, B. (1997), "The Market Orientation Construct: Measurement and scaling issues," Journal of Marketing Theory and Practice, 15, 3, 31-54

ZHUO, Z., Yim, C. and K. Tse (2005), "The Effects of Strategic Orientations on Technology- and Market-Based Breakthrough Innovations," Journal of Marketing, 69, 42-60




DOI: http://dx.doi.org/10.4067/S0718-27242011000300004



Copyright (c)



2017 © Universidad Alberto Hurtado - Facultad de Economía y Negocios. 
Erasmo Escala 1835 - Santiago, Chile.
Economic Analysis Review | Observatorio Económico | Gestión y Tendencias 

Journal Supported by Chimera Innova Group