In recent years, a market-oriented corporate culture increasingly has been considered a key element of superior corporate performance. Although organizational innovativeness is believed to be a potential mediator of this market orientation - corporate performance relationship, much of the evidence to date remains anecdotal or speculative. In this context, a systematic framework is presented to test the postulated market orientation-innovation-performance chain. To this end, the direct causality assumption of market orientation on organizational performance is examined with Narver and Slater's (1990) market orientation framework. Moreover, a componentwise approach is taken, and an examination is conducted of how the 3 core components of market orientation affect the 2 core components organizational innovativeness en route to affecting corporate performance. Using banking industry data, innovation's mediating role in the market orientation-corporate performance relationship is empirically tested and substantiated.
corporate performance, innovation, market orientation, marketing, corporate culture, strategic planning
Business | Marketing | Technology and Innovation
Journal of Marketing
HAN, Jin K.; KIM, Namwoon; and SRIVASTAVA, Rajendra K..
Market Orientation and Organizational Performance: Is Innovation a Missing Link?. (1998). Journal of Marketing. 62, (4), 30-45. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/2234