Publication Type

Journal Article

Version

Publisher’s Version

Publication Date

10-1998

Abstract

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.

Keywords

corporate performance, innovation, market orientation, marketing, corporate culture, strategic planning

Discipline

Business | Marketing | Technology and Innovation

Research Areas

Marketing

Publication

Journal of Marketing

Volume

62

Issue

4

First Page

30

Last Page

45

ISSN

0022-2437

Publisher

AMA

Additional URL

http://www.jstor.org/stable/1252285

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