Managing the product innovations paradox: the individual and synergistic role of the firm inside-out and outside-in marketing capability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shabahat Ali ◽  
Weiwei Wu ◽  
Sadaqat Ali
Keyword(s):  
Market Orientation ◽  
Product Innovation ◽  
Marketing Capabilities ◽  
Marketing Capability ◽  
Radical Product ◽  
Content Type ◽  
Product Innovations ◽  
The Individual ◽  
Inside Out ◽  
Innovation Outcomes

PurposeBuilding upon the firm market orientation theories, this study aims to examine the individual and synergistic effects of the firm inside-out and outside-in marketing capability on its incremental and radical product innovation outcomes.Design/methodology/approachBy collecting cross-sectional data from 203 manufacturing firms in Pakistan, confirmatory factor analysis in AMOS and hierarchical multiple regression analysis in SPSS are performed to validate the study measurement models and test the hypothesized relationships, respectively.FindingsThe findings of this study suggest both inside-out and outside-in marketing capability critical for incremental and radical product innovation. Specifically, inside-out marketing capability is found positively associated with incremental product innovation and non-linearly (inverted U-shaped) associated with radical product innovation. Conversely, outside-in marketing capability is found positively associated with radical product innovation but non-linearly (inverted U-shaped) associated with incremental product innovation. However, the results indorse that developing synergy between the inside-out and outside-in marketing capability positively impacts both incremental and radical product innovation.Originality/valueDrawing from the firm inside-out and outside-in market orientation theories, the study extends the existing research on product innovation outcomes from the marketing capabilities perspective. Previous literature highly recognized the value of the firm market orientation and being market-driven in market-based product innovations. However, there was a lack of understanding of how the firm marketing capabilities facilitate incremental and radical product innovation. This study provides a novel understanding of the firm inside-out and outside-in marketing capability role in inducing incremental and radical product innovation which enrich and extend the current literature on firm capabilities and product innovations from a marketing perspective.

Roles of strategic orientations in radical product innovation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chih-Wei Lin ◽  
Li Keng Cheng ◽  
Lei-Yu Wu
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Product Innovation ◽  
Life Cycles ◽  
Radical Product ◽  
Content Type ◽  
Proactive Market Orientation ◽  
Strategic Orientations ◽  
Market Feedback

PurposeBecause of relatively short product life cycles, radical product innovation has more significant influences on firms' competitive advantages in dynamic environments. Past studies identified various cultural characteristics of a firm, which are key drivers of developing radical product innovation on an ongoing basis. However, few studies have investigated the interaction between organizational culture and external market feedback in developing radical product innovation.Design/methodology/approachTo address the identified research gaps, this empirical research began by presenting conceptual foundations that lead to the hypothesized model and then analyzed survey data from 201 original equipment manufacturer suppliers in search of evidence supporting the hypotheses.FindingsThe results suggested that a supplier's entrepreneurial orientation and long-term orientation significantly and positively affected proactive market orientation, with proactive market orientation significantly and positively correlated with radical product innovation. The study confirmed that a proactive market orientation is essential in order for entrepreneurial orientation and long-term orientation to affect radical product innovation. Additionally, this study found that supplier–customer electronic integration has a moderating effect on proactive market orientation and radical product innovation.Originality/valueRadical product innovation is a topic of great interest for both academia and industry, yet a comprehensive conceptual framework for its antecedents is still lacking. To fill this theoretical gap, the present study extended the studies on radical product innovation and examined the relationship between different strategic orientation types in terms of supplier–customer strategic behaviors to determine how suppliers enhance radical product innovation.

Developing the capability of marketing intelligence

2015 ◽  
Vol 22 (7) ◽  
pp. 1341-1359 ◽  
Author(s):  
Wei-Shong Lin ◽  
Jing-Wen Hsu ◽  
Ming-Yih Yeh
Keyword(s):  
Firm Performance ◽  
Tacit Knowledge ◽  
Market Orientation ◽  
Organizational Capabilities ◽  
Small Scale ◽  
Marketing Capabilities ◽  
Marketing Capability ◽  
Organizational Capability ◽  
Content Type ◽  
Marketing Intelligence

Purpose – The purpose of this paper is to help firms to create competitiveness by developing marketing capabilities. It analyzes how the component and architectural competences affect and enhance market orientation and firm performance. Design/methodology/approach – Built on the theories of organizational capability, knowledge creation, and market orientation, this research develops the contents of marketing capabilities, including component and architectural competences that contribute to marketing capability by responding to external changes, and analyzes their influence on market orientation and firm performance. Findings – The study reveals the following effective marketing capabilities which benefit to marketing performance. First, hiring and retaining employees with higher professional, local, and specific knowledge. Second, firms with higher tacit knowledge enhance market orientation. Third, arranging employees into teamwork to implement marketing tasks. Fourth, assigning employees into small-scale experiments on creative proposals. Fifth, standardizing procedures of generation, dissemination, and response of marketing intelligence. Sixth, providing written market information and training programs to non-marketing staff. Seventh, appropriately delegating to staff. Eighth, establishing apprenticeship among the staff to deliver experiential know-how. Research limitations/implications – From a dynamic capability perspective, this research construct the two kinds of marketing competences and examine their effect on market orientation and firm performance. For further understanding the complementary effects of marketing capabilities, market orientation, and synergistic performance, a larger sample data (e.g. product, market share, sales, characteristics of staff, firm, and knowledge, etc.) and objective evaluation are encouraged. Otherwise, from the viewpoint of agency theory, the incentive system should also be discussed. Practical implications – This research has potentially significant implications for knowledge management and marketing management fields as well as managerial practice. The results suggest the importance of marketing capability for market orientation and firm performance. Originality/value – Marketing resources and marketing capabilities are significant drivers of firm performance, and their impact is greater when they are complementary to each other. This study takes the perspectives of organizational capabilities and market orientation to find out the factors which contribute to marketing capability and performance. This study provides practitioners with a framework for analyzing marketing capabilities as an object of improving firm performance by creating market orientation. Furthermore, this research empirically introduced strategic specific competence (tacit knowledge and autonomy) into the model and tests their effect of market orientation and firm performance.

Resolving the Capability–Rigidity Paradox in New Product Innovation

2005 ◽  
Vol 69 (4) ◽  
pp. 61-83 ◽  
Author(s):  
Kwaku Atuahene-Gima
Keyword(s):  
Market Orientation ◽  
Product Innovation ◽  
Radical Innovation ◽  
Innovation Performance ◽  
Radical Product ◽  
Research Attention ◽  
Managerial Task ◽  
Exploitation And Exploration ◽  
The Relationship ◽  
Innovation Outcomes

Managers face an important strategic dilemma in product innovation: how to exploit existing product innovation competencies (competence exploitation) while avoiding their dysfunctional rigidity effects by renewing and replacing them with entirely new competencies (competence exploration). Although the resolution of what is termed the “capability–rigidity paradox” is considered a fundamental managerial task in enhancing product innovation outcomes and the firm's competitive advantage, it has received little research attention. The author argues and finds support that market orientation provides a key to this paradox. Specifically, customer and competitor orientations ensure simultaneous investments in exploiting existing product innovation competencies and exploring new ones. The author also finds that the effects of these orientations on competence exploitation and exploration are differentially moderated by interfunctional coordination and perceived market opportunity. Regarding outcomes, competence exploitation and exploration have opposing relationships with incremental and radical innovation performance. However, the relationship between competence exploration and radical innovation performance is positively moderated by interfunctional coordination. Overall, the results of this study suggest that market orientation can prevent a firm from becoming operationally efficient but strategically inefficient by simultaneously engendering competence exploitation and exploration, which are differentially related to incremental and radical product innovation outcomes.

Design thinking and radical innovation: enter the smartwatch

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amir Bahman Radnejad ◽  
Michael F. Ziolkowski ◽  
Oleksiy Osiyevskyy
Keyword(s):  
Product Innovation ◽  
Design Thinking ◽  
Illustrative Case ◽  
Radical Product ◽  
Content Type ◽  
Human Needs ◽  
Radical Innovations ◽  
Product Innovations ◽  
Watch Industry

Purpose This paper aims to expand the understanding of the design thinking (DT) field and provides evidence that DT as an innovation mindset centered on user/human needs is able to lead enterprises to the development of radical product innovation. Design/methodology/approach The study is based on an illustrative case analysis of four eras of radical innovations in the watch industry, from the mechanical wristwatches to smartwatches. Findings The findings from the watch industry substantiate the developed DT triangle framework for designers, managers and executives, enabling the development of radical product innovation. Originality/value The study provides evidence for the claim that human-centered approach (rather than design-driven, meaning-changing approach) in DT can successfully lead to radical product innovations. For this, this paper distinguishes between “need” and “meaning” in the DT field and reemphasize the role of creating empathy with users to be able to identify their newly shaped needs. Fulfilling these newly shaped needs would ultimately result in the development of radically new products.

Cooperation with suppliers, firm size and product innovation

2014 ◽  
Vol 114 (3) ◽  
pp. 438-455 ◽  
Author(s):  
Beatriz Minguela-Rata ◽  
Jose Fernández-Menéndez ◽  
Marta Fossas-Olalla
Keyword(s):  
Firm Size ◽  
Product Innovation ◽  
Small Firms ◽  
Business Strategies ◽  
Manufacturing Companies ◽  
Radical Product ◽  
Content Type ◽  
Radical Innovations ◽  
Product Innovations ◽  
Conservative Attitude

Purpose – The purpose of this paper is to analyze the effect of technological cooperation with suppliers (TCS) and the firm size on propensity to develop product innovations and on propensity to radical innovations. Design/methodology/approach – The study uses data from Business Strategies Survey (ESSE in Spanish). The final sample was composed by 1,952 companies representing the Spanish manufacturing industries. Some control variables were introduced: age, propensity to export and sector technological intensity level. Logistic regression analyses were adopted to analyze the data. Findings – The results indicate that those firms that cooperate technologically with suppliers have a greater propensity for product innovation and, specifying, for radical innovations; and the larger firm size, greater the propensity to product innovations. However, radical product innovations depend of some characteristics of firms and environment. Research limitations/implications – The sample just focusses on Spanish manufacturing companies. Small firms will benefit more from the TCS. Practical implications – Some characteristics of firms and environment can originate some rigidity and take a more conservative attitude. In this sense, large and small firms, as well as, the oldest firms have a more conservative attitude when they carry out radical product innovations. Originality/value – The study contributes to product innovation literature and also to the debate regarding firm size and innovation. It distinguishes between radical and incremental innovations. Indeed, some characteristics of firms (such as size or age) and environment should be considered when the firms carry out the innovation process.

Adaptive marketing capability and product innovations: the role of market ambidexterity and transformational leadership (evidence from Pakistani manufacturing industry)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shabahat Ali ◽  
Weiwei Wu ◽  
Sadaqat Ali
Keyword(s):  
Transformational Leadership ◽  
Manufacturing Firms ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Marketing Capability ◽  
Radical Product ◽  
Content Type ◽  
Product Innovations ◽  
Exploitation And Exploration

PurposeThis study aims to offer and validate an integrated marketing capability-product innovations framework. Particularly, it aims to examine the role of adaptive marketing capability in enabling market ambidexterity and incremental as well as radical product innovation. Also it intends to investigate the moderating role of transformational leadership between adaptive marketing capability and market ambidexterity.Design/methodology/approachManufacturing firms in Pakistan, an emerging economy, are taken as the context for this study. A designed survey questionnaire is used for data collection. Partial least square technique is employed to empirically validate and test the hypothesized model with a sample of 192 manufacturing firms. Particularly, the two-stage approach in SmartPLS is used to validate measurement models, and structural equation modeling technique is used to test the proposed hypothesis.FindingsThe findings not only confirm that adaptive marketing capability is instrumental to both incremental and radical product innovations but also reveal that adaptive marketing capability serves an important antecedent to market ambidexterity shedding new lights on its mediating role in the relationship of adaptive marketing capability with incremental and radical product innovations. Moreover, the results find that the effectiveness of adaptive marketing capability to support market ambidexterity may involve a possible trade-off between exploitation and exploration when the leaders exhibit a low or high level of transformational leadership behavior.Originality/valueThis study contributes to outside-in strategic perspective and contextual ambidexterity literature by revealing the role of adaptive marketing capability as an important enabler of market ambidexterity which, in turn, allows the firm to simultaneously introduce incremental and radical product innovations. In this way, this study advances the current understanding of the antecedents and consequences of contextual ambidexterity. Also, this study provides insight into the types of capabilities needed for the firm's contextual and employees' behavioral adaptation to simultaneously manage exploitation and exploration within the same business unit which was lacking in the previous literature. Further, this study also offers a novel understanding of the conditional role of transformational leadership between adaptive marketing capability and market ambidexterity.

How does corporate learning orientation enhance industrial brand equity? The roles of firm capabilities and size

2019 ◽  
Vol 35 (2) ◽  
pp. 231-243 ◽  
Author(s):  
Yi Xie ◽  
Xiaoying Zheng
Keyword(s):  
Brand Equity ◽  
Firm Size ◽  
Small Firms ◽  
Learning Orientation ◽  
Innovation Capability ◽  
Marketing Capabilities ◽  
Marketing Capability ◽  
Content Type ◽  
Corporate Learning ◽  
The Impact

Purpose This paper aims to examine the role of learning orientation in building brand equity for B2B firms. The present research proposes that learning orientation contributes to the development of innovation and marketing capabilities and, in turn, leads to enhanced industrial brand equity. Furthermore, the moderating effect of firm size in these processes is investigated. Design/methodology/approach The hypotheses are tested by administering a survey with a set of managers of manufacturing firms in China. Findings Innovation capability and marketing capability serve as the mediators between learning orientation and industrial brand equity. The mediating path through innovation capability is stronger for small firms than for large firms. Research limitations/implications Learning orientation provides a cultural base for B2B firms to cultivate brand equity. Measurement of industrial brand equity and contingency of its effect requires further investigation. Practical implications To transform learning-oriented culture into brand equity, firms need to develop and manage innovation and marketing capabilities. The learning orientation–innovation capability route is more beneficial for small firms. Originality/value While a majority of prior literature ignores the impact of organizational culture in driving industrial brand equity, the present research explores learning orientation as a key cultural antecedent of industrial brand equity. A more refined industrial-brand-equity-building mechanism from learning orientation to corporate capabilities and then to brand equity is proposed and tested. The mechanism varies with firm size.

scholarly journals Effect of market orientation, marketing capability, product innovation on performance

2021 ◽  
Author(s):  
Putu Pradipta Widya Nugraha
Keyword(s):  
Market Orientation ◽  
Product Innovation ◽  
Marketing Capability

Krisis ekonomi yang dialami Indnesia pada tahun 1997 bertumpu pada pembangunan dan pengembangan usaha-usaha besar. Usaha besar ini diharapkan dapat mendorong sektor perekonomian baik mikro maupun makro. Namun krisis yang terjadi mengehentikan pembangunan yang sedang berlangsung karena kebanyakan perusahaan besar mengalami kebangkrutan dan pemutusan hubungan kerja dengan skala besar. . Oleh karena itu menjaga stabilitas kinerja suatu usaha atau bahkan meningkatkannya. Tujuan dari penelitian ini adalah menganalisa pengaruh orientasi dari pasar, kapabilitas, serta inovasi dalam usaha yang dijalankan terutama untuk daerah Jakarta Barat. Penelitian ini menggunakan metode kuesioner yang diolah dengan aplikasi SPSS.

Impact of marketing effectiveness and capabilities, and export market orientation on export performance

2016 ◽  
Vol 28 (5) ◽  
pp. 532-559 ◽  
Author(s):  
Aydin Kayabasi ◽  
Thandiwe Mtetwa
Keyword(s):  
Market Orientation ◽  
Structural Equation ◽  
Structural Model ◽  
Export Performance ◽  
Export Market ◽  
Marketing Capabilities ◽  
Content Type ◽  
Marketing Effectiveness ◽  
Confirmatory Factor

Purpose The purpose of this paper is to examine the relationships between marketing effectiveness, marketing capabilities, export market orientation and export performance. Design/methodology/approach The research analyses whether export market orientation, marketing effectiveness and marketing capabilities are antecedents of export performance with structural equation modelling. Data to test the model were obtained through a structured survey of 443 export companies operating in the Aegean region of Turkey. After explanatory and confirmatory factor analysis, the structural model was tested. Findings The findings suggest that export market orientation has a significant impact on marketing capabilities and marketing effectiveness, and that marketing effectiveness has a significant impact on export performance. This indicates that export market orientation is central to the development of marketing capabilities, while marketing effectiveness contributes to explaining export performance. Research limitations/implications There are several limitations of the research. The first significant limitation is that the variables had various sub-dimensions. The second limitation is about sampling of the research that it is not specific to a particular sector. Practical implications This paper provides useful insights to exporters on market orientation, focal dimensions of marketing effectiveness and marketing capabilities that would help them enhance their export performance. Originality/value Using the resource-based view, this paper contributes to the explanation for export performance by assessing the role of export market orientation behaviour on marketing capabilities and marketing effectiveness.

The missing links of sustainable supply chain management and green radical product innovation between sustainable entrepreneurship orientation and sustainability performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebenezer Afum ◽  
Kassimu Issau ◽  
Yaw Agyabeng-Mensah ◽  
Charles Baah ◽  
Essel Dacosta ◽  
...  
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Product Innovation ◽  
Social Performance ◽  
Sustainable Supply Chain ◽  
Radical Product ◽  
Chain Management ◽  
Content Type ◽  
Sustainable Supply Chain Management ◽  
Sustainability Performance

Purpose Anchored on the natural resource-based view and stakeholder theories, this study aims to investigate the mediating roles of sustainable supply chain management and green radical product innovation (GRPI) in the link between sustainable entrepreneurial orientation (SEO) and sustainability performance. Design/methodology/approach The comprehensive research model developed in this study is empirically tested by using data garnered from 248 managers of Ghanaian small and medium-sized enterprises. Partial least square structural equation modeling is applied as the methodological technique to test all the hypothesized relationships. Findings Results of the study indicate that SEO has a direct significant positive impact on environmental performance and social performance but not financial performance. However, through sustainable supply chain management and GRPI (both mediating variables), SEO tends to have significant impact on all sustainability performance dimensions (environmental, financial and social performance). Originality/value This study offers fresh empirical evidence by developing a unified research model that validates the specific mediation role of sustainable supply chain management between SEO and green radical product innovation, as well as the mediating roles of both sustainable supply chain management and GRPI between SEO and sustainability performance dimensions.

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