Market Orientation, Knowledge Competence, and Innovation

International Journal of Research in Marketing, Issue 3, Volume 32, 2015

38 Pages Posted: 11 Oct 2014

See all articles by H. Erkan Ozkaya

H. Erkan Ozkaya

California State Polytechnic University, Pomona - International Business and Marketing

Cornelia Droge

Michigan State University - Department of Marketing and Supply Chain Management

G. Tomas M. Hult

Michigan State University

Roger Calantone

Michigan State University

Elif Ozkaya

California State Polytechnic University, Pomona - International Business and Marketing

Date Written: October 9, 2014

Abstract

This study focuses on two dimensions of market orientation and the corresponding dimensions of market knowledge competence: i.e., the customer and competitor dimensions. We examine whether customer and competitor orientations are transmuted into market-based innovation either directly, or through customer and competitor knowledge competencies indirectly. The findings support that knowledge competencies are indeed mediators of the positive relationships between orientations and market-based innovation. Also, market-based innovation mediates the positive relationships between customer and competitor knowledge competencies and overall firm performance. A cross-country comparison reveals that, in the U.S. as compared to Chinese firms, customer (or competitor) orientation leads to both higher customer (or competitor) knowledge competence and enhanced market-based innovations; in other words, the model’s relationship strengths are greater in U.S. firms, indicating that they are better able to leverage customer (or competitor) orientation to obtain performance consequences.

Keywords: Market knowledge competence, market orientation, market-based innovation, U.S. versus China

Suggested Citation

Ozkaya, H. Erkan and Droge, Cornelia and Hult, G. Tomas M. and Calantone, Roger and Ozkaya, Elif, Market Orientation, Knowledge Competence, and Innovation (October 9, 2014). International Journal of Research in Marketing, Issue 3, Volume 32, 2015. Available at SSRN: https://ssrn.com/abstract=2507956

H. Erkan Ozkaya (Contact Author)

California State Polytechnic University, Pomona - International Business and Marketing ( email )

United States

Cornelia Droge

Michigan State University - Department of Marketing and Supply Chain Management ( email )

East Lansing, MI 48824-1121
United States

G. Tomas M. Hult

Michigan State University ( email )

East Lansing, MI 48824-1121
United States

Roger Calantone

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Elif Ozkaya

California State Polytechnic University, Pomona - International Business and Marketing ( email )

United States

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