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.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

The associations among market orientation, technology orientation, entrepreneurial orientation and organizational performance

2018 ◽  
Vol 25 (8) ◽  
pp. 3117-3142 ◽  
Author(s):  
Ra’ed Masa’deh ◽  
Jawaher Al-Henzab ◽  
Ali Tarhini ◽  
Bader Yousef Obeidat
Keyword(s):  
Organizational Performance ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Strategic Orientation ◽  
Pharmaceutical Companies ◽  
Pharmaceutical Sector ◽  
Content Type ◽  
Strategic Orientations ◽  
Technology Orientation ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between three variables of strategic orientation (market orientation, technology orientation entrepreneurial orientation) and organizational performance in the Jordanian pharmaceutical sector.Design/methodology/approachThis study employed a quantitative research design where 252 questionnaires were collected form respondents operating in various pharmaceutical companies in Jordan to obtain necessary data to test the hypotheses developed for the study. Multiple regressions were used to analyze the research data.FindingsThe results of the analysis revealed that strategic orientations were positively and significantly related to organizational performance. The findings also showed that market orientation contributed the most to the enhancement of organizational development followed by technology orientation and finally entrepreneurship orientation.Practical implicationsThese findings contribute to the understanding of the importance of employing multiple strategic orientations in order to enhance organizational performance, particularly in pharmaceutical companiesOriginality/valueThis is the first study which adequately covers the relationship between three variables of strategic orientation (market orientation, technology orientation, entrepreneurial orientation) and organizational performance in the Jordanian pharmaceutical sector.

Effect of entrepreneurial orientation, market orientation and total quality management on performance

2020 ◽  
Vol 27 (4) ◽  
pp. 1503-1531 ◽  
Author(s):  
Gamal Abdualmajed Ali ◽  
Haim Hilman ◽  
Abdullahi Hassan Gorondutse
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Developing Economies ◽  
Superior Performance ◽  
Organisational Performance ◽  
Total Quality ◽  
Content Type ◽  
Strategic Orientations

PurposeThis study aims to examine the joint effect of entrepreneurial orientation (EO), market orientation (MO), total quality management (TQM) and organisational performance in the Kingdom of Saudi Arabia’s (KSA's) small and medium enterprise (SME) sector.Design/methodology/approachThis paper used a quantitative research design. A total of 393 questionnaires were distributed to and collected from owners/managers of SMEs in KSA to acquire requisite data for examining the hypothesised model of the study. Partial least squares structural equation modelling was used to analyse the research data.FindingsThe results indicate that EO, MO and TQM are positively and significantly related to the organisational performance of SMEs. In addition, the findings reveal that TQM has contributed the most to the enhancement of organisational development, which is followed by EO and finally, MO.Practical implicationsDeveloping economies consider SMEs as an approach to generate new jobs and enhance economic growth. The results provide owners/managers, practitioners and academicians with an enhanced understanding of the relationship and effects of EO, MO and TQM on organisational performance, particularly in the SME sector. Thus, owners/managers are guided to develop improved and further effective decisions for the implementation of TQM practices with strong EO and MO. Consequently, firms realise superior performance and continuously compete within their market.Originality/valueFrom the perspective of developing countries, this study contributes to the existing literature by providing empirical evidence regarding the effects of EO, MO, TQM and SMEs' performance. This study is the first to empirically examine the SME sector within the KSA's economy regarding the new orientation among decision makers in terms of increasing the significance of non-oil activities. This study also confirms the usability of resource-based view theory and strategic orientations variables in the KSA SMEs.

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.

Do types of strategic orientations make a difference?

2020 ◽  
Vol 32 (1) ◽  
pp. 26-45
Author(s):  
Tobias Pehrsson
Keyword(s):  
Market Orientation ◽  
Multinational Corporations ◽  
Entrepreneurial Orientation ◽  
Linear Regression Analysis ◽  
Research Direction ◽  
Foreign Markets ◽  
Content Type ◽  
Strategic Orientations ◽  
Resource Advantage Theory ◽  
New Research

Purpose The purpose of this paper is to create a new research direction within the domain of firms’ strategic orientations. Design/methodology/approach Based on data from Swedish multinational corporations (MNCs), this paper identifies types, i.e. configurations, of strategic orientations involving the components of entrepreneurial orientation and market orientation, and examines relationships with performance in foreign markets. Cluster analysis identifies types, and linear regression analysis examines relationships with performance in foreign markets. Findings Four types of orientations were found: conservative; entrepreneurial; maximizing; and irresolute. Furthermore, it was found that the relationship with performance in foreign markets is most positive for the maximizing followed by the conservative and irresolute. Research limitations/implications First, it is established that entrepreneurial orientation and market orientation do not operate in isolation but are mutually supportive. Second, by establishing that type of orientations makes a difference for performance, this paper goes beyond the predominant view saying that just degrees matter. Third, the findings contribute to resource-advantage theory by establishing that competitive advantage results from resources being complementary in nature. Practical implications Instead of solely relying only on entrepreneurial orientation, or market orientation, corporations are advised to carefully evaluate their configuration of orientations. The evaluation is decisive because it cites implications for performance. Originality/value The study contributes to the literature on strategic orientation in a unique way as it captures performance implications stemming from types of strategic orientations.

How does cooperation affect innovation in micro-enterprises?

2014 ◽  
Vol 52 (8) ◽  
pp. 1390-1409 ◽  
Author(s):  
Chiayu Tu ◽  
Shiuh-Nan Hwang ◽  
Jehn-Yih Wong
Keyword(s):  
Product Innovation ◽  
Entrepreneurial Success ◽  
Resource Based View ◽  
Content Type ◽  
Success Stories ◽  
Final Questionnaire ◽  
Practical Implications ◽  
Micro Enterprises ◽  
Night Markets

Purpose – This research investigates how micro-enterprises cooperate with external parties in order to promote innovation and entrepreneurial success. The purpose of this paper is to describe supplier and consumer cooperation and analyzes how these two behavioral modes influence the product and service innovations of micro-enterprises. Based on the resource-based view of the firm, the authors show that micro-enterprises help the source of innovation by tapping into the resources and abilities of suppliers. Design/methodology/approach – This research used a questionnaire to randomly sample micro-entrepreneurs that run stalls at night markets. Before distributing the final questionnaire, the authors in-depth interviewed ten micro-entrepreneurs and asked them to openly describe their entrepreneurial processes and success stories. Findings – The results of this study show that cooperation with consumers does not improve product and service innovations. By contrast, the cooperation of micro-enterprises with suppliers was found to increase the generation of product and service innovations in the present study. And the findings show that the effect of innovation approaches on entrepreneurial success indicates that product innovation positively improves firm performance. Last, from the perspective of cooperation behavior, product innovation mediates entrepreneurial success through cooperation with suppliers. Research limitations/implications – Because of respondents were night market vendors and thus the results are not necessarily generalizable to other types of micro-enterprises. Therefore, researchers are encouraged to test multiple types of micro-enterprises. Second, this research aimed to differentiate the relationships between innovation approaches and entrepreneurial success by focussing exclusively on product and service innovations. Therefore, other variables should be included in future studies. Practical implications – As for practical implications in the field of cooperation behavior, the authors have shown that it is crucial to maintain long-term cooperative relations with trusted suppliers. Social implications – As for practical implications in the field of cooperation behavior, the authors have shown that it is crucial to maintain long-term cooperative relations with trusted suppliers. Originality/value – This paper fulfills an identified need to study how innovation in micro-enterprises.

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.

Strategic orientations and firm innovativeness: a necessary condition analysis

2019 ◽  
Vol 14 (3) ◽  
pp. 427-442 ◽  
Author(s):  
Nguyen Dinh Tho
Keyword(s):  
Relationship Quality ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Necessary Condition ◽  
Learning Orientation ◽  
Business Relationship ◽  
Content Type ◽  
Strategic Orientations ◽  
Marketing Orientation ◽  
Firm Innovativeness

Purpose The purpose of this paper is to decipher the levels of three strategic orientations – learning orientation, entrepreneurial orientation (proactiveness and risk taking) and marketing orientation (responsiveness to customers, responsiveness to competitors, responsiveness to the macro-environment and business relationship quality) – that are necessary for firm innovativeness. Design/methodology/approach Data were collected from a sample of 316 firms in Ho Chi Minh City, Vietnam. Multiple regression analysis (MRA) was employed to examine the net effects of seven factors (learning orientation, proactiveness, risk taking, responsiveness to customers, responsiveness to competitors, responsiveness to changes in the macro-environment and business relationship quality) on firm innovativeness. Necessary condition analysis (NCA) was then employed to discover the level of these factors as necessary conditions for firm innovativeness. Findings The results produced by MRA show that learning orientation, proactiveness, responsiveness to customers and responsiveness to competitors have positive effects on firm innovativeness. The results from the NCA reveal that six out of seven conditions exhibit varying necessary levels for firm innovativeness. Practical implications The findings are relevant to senior managers and suggest that the levels of strategic orientations necessary for firm innovativeness vary. Firms therefore should pay attention not only to the net effects (beta weights) but also to their necessary levels. Based on their resources and capabilities, firms should take into account the necessary level of each strategic orientation in order to achieve their innovativeness goal. Originality/value This study is among the first to decipher the levels of three strategic orientations (learning orientation, entrepreneurial orientation and marketing orientation) that are necessary for firm innovativeness.

Market orientation and women-owned SMEs performance

2020 ◽  
Vol 9 (2) ◽  
pp. 215-234 ◽  
Author(s):  
Muhammad Amir Rashid ◽  
Masood Nawaz Kalyar ◽  
Imran Shafique
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Strategic Decision ◽  
Hierarchical Regression ◽  
Full Potential ◽  
Survey Questionnaire ◽  
Content Type ◽  
And Performance ◽  
Practical Implications

PurposeThis research aims to investigate the contingent effect of entrepreneurial orientation (EO) and strategic decision responsiveness (SDR) on the link of market orientation (MO) and performance of women-owned small and medium-sized enterprises (WSMEs).Design/methodology/approachData were collected from 909 WSMEs of Punjab province Pakistan through survey questionnaire. Hierarchical regression is employed to perform the analysis.FindingsResults reveal that although higher-level dimensions of MO directly affect the WSMEs performance, however this linkage becomes stronger under SDR and higher-level dimensions of EO.Practical implicationsManagers should emphasis on the demonstration of EO's dimensions and SDR to utilize the full potential of MO to promote WSMEs performance.Originality/valueTo study the contingent effect of SDR and EO's dimensions in the MO–WSMEs performance nexus is the novelty of this study.

scholarly journals Strategic orientations and cooperation of external agents in the innovation process of rural enterprises

2016 ◽  
Vol 46 (10) ◽  
pp. 1878-1884 ◽  
Author(s):  
José Francisco dos Reis Neto ◽  
Pablo Antonio Muñoz-Gallego ◽  
Celso Correia de Souza ◽  
Denise Renata Pedrinho ◽  
Silvio Favero ◽  
...  
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Radical Innovations ◽  
Strategic Orientations ◽  
Rural Enterprises ◽  
Generic Agents ◽  
Innovation Processes

ABSTRACT: This article provides empirical evidence for the relationship between the market orientation, entrepreneurial orientation, and collaboration of external actors in the processes of incremental and radical innovations in rural enterprises. The research tested two sets of assumptions: first, the relation between contributions of strategic orientation and innovation processes; and second, collaborations of external stakeholders in the implementation of innovation processes. Data were collected from 208 rural enterprises and analyzed with the use of techniques of partial least squares structural equation modeling. Results showed that the market orientation contributes to the development of incremental innovation, and that the entrepreneurial orientation contributes to the implementation of the incremental and radical innovations. Specific agents (buyers, suppliers of goods and services, consultants, and others producers), collaborate positively in implementing incremental innovation; however, generic agents do not. The generic agents (universities and specialized public organizations) are the ones that most intervene in radical innovations. The use of consistent theory in the areas of strategy, marketing and management in identifying that some of their causal relationships are confirmed for rural businesses unlike others, due to the structure of the market and the products produced by them.

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