The Mediating Effect of Npd-Activities and Npd-Performance on the Relationship between Market Orientation and Organizational Performance

53 Pages Posted: 26 Aug 2006

See all articles by Fred Langerak

Fred Langerak

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

E.J. Hultink

Delft University of Technology

Henry S.J. Robben

Nyenrode University

Date Written: 27 2000, 11

Abstract

Empirical research has demonstrated that a market orientation has in general a positive effect on organizational performance. The potential benefits of a market orientation have, however, not been realized because academics and practitioners do not yet understand the modus operandi that transform market orientation into superior organizational performance. Recent research has demonstrated that the proficiency in new product development (NPD) activities might be the key in the conversion of market orientation into superior NPD-performance, and hence, organizational performance. This study is designed to test a set of hypotheses related to the interrelationships among market orientation, the proficiency in NPD-activities, NPD-performance, and organizational performance. The results from a sample of 126 manufacturing firms in the Netherlands present evidence for the mediating role of the proficiency in several NPD-activities and NPD-performance in the relationship between market orientation and organizational performance. The fact that this mediating role has been found thus provides a better understanding of how market-oriented behaviors are transformed into superior value for customers.

Keywords: market orientation, innovation, performance evaluation, studies, statistical analysis

JEL Classification: M, C44

Suggested Citation

Langerak, Fred and Hultink, Erik Jan and Robben, Henry S.J., The Mediating Effect of Npd-Activities and Npd-Performance on the Relationship between Market Orientation and Organizational Performance (27 2000, 11). ERIM Report Series Reference No. ERS-2000-50-MKT, Available at SSRN: https://ssrn.com/abstract=370851

Fred Langerak (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Erik Jan Hultink

Delft University of Technology ( email )

Jaffalaan 9
NL-2628 BX Delft
Netherlands
+31.15.27.83.032 (Phone)
+31.15.27.87.662 (Fax)

Henry S.J. Robben

Nyenrode University ( email )

Straatweg 25
NL-3621 Breukelen, 3621 BG
Netherlands
+31.34.62.91.211 (Phone)
+31.34.62.64.204 (Fax)

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