Market Orientation, Knowledge Competence, and Innovation
International Journal of Research in Marketing, Issue 3, Volume 32, 2015
38 Pages Posted: 11 Oct 2014
Date Written: October 9, 2014
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
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