scholarly journals A Study of the Mediating Role of Product Management on Relationship between Market orientation and firm Performance (Case Study: Home appliances manufacturing companies in Esfahan Province)

Author(s):  
Hassan Ghorbani ◽  
Azade Yaghootkar
2016 ◽  
Vol 13 (06) ◽  
pp. 1750003 ◽  
Author(s):  
Cevahir Uzkurt ◽  
Halil Semih Kimzan ◽  
Cengiz Yılmaz

In recent years, environmental uncertainty and market orientation have been considered key elements of superior firm performance. Although environmental uncertainty and market orientation may affect firm performance, innovation also mediates these effects. In this study, a conceptual model was developed to test the mediating effect of innovation on the relationships between these constructs. Data for the study were collected from Turkey’s Top 500 Companies. Hierarchical regression and multiple regression analyses were employed to test the research hypotheses. The findings of the study revealed that the direct effects of environmental uncertainty and innovation on firm performance were statistically significant, although the effect of market orientation was not. The results obtained from the present study seem to indicate a possible “dual effect” of market orientation on firm performance. The results also indicated that innovation, especially product innovation, mediates the relationship between environmental uncertainty and firm performance. The findings indicate that innovation, especially product innovation, is critical for firm performance.


2021 ◽  
Vol 5 (3) ◽  
pp. 149-156
Author(s):  
Anggiat Maju Lubis ◽  
Firdaus Basbeth

Performance of PT WIKON in two consecutive years indicated run into downtrend from the year 2018 to the year 2019. Low levels of Entrepreneurial Orientation, Innovation Capability, and Market Orientation have been suspected as factors leading to the performance of PT WIKA Industri & Konstruksi.  The objective of this study is to investigate Market Orientation as the mediator of relationship Entrepreneurial Orientation and Innovation Capability on Firm Performance in a construction company. However, study-related Market Orientation as a mediator on the indirect effect of Innovation Capability and Firm Performance is still rare, therefore research on this subject can be seen as Novelty. There are Six theory-based hypotheses are measured. This research employs a quantitative approach with empirical evidence of employees and BOD of PT WIKA Industri & Konstruksi. Survey data are from 93 respondents were analyzed used structural equation modeling (SEM). The findings of this research showed that Market Orientation has a positive effect on Firm Performance. Surprisingly, Entrepreneurial Orientation (EO) and Innovation Capability (IC) independently do not have a direct effect on Firm Performance. The Effect of Entrepreneurial Orientation (EO) on Firm Performance (FP) is mediated by Market Orientation. Likewise, the effect of Innovation Capability (IC) on Firm Performance (FP) is mediated by Market Orientation. These results suggest that Entrepreneurial Orientation and Innovation Capability should focus on Market Orientation to improve the overall Firm Performance. Besides, it is highly recommended to middle management and above of PT WIKA Industri & Konstruksi should focus and allocate resources to Market Orientation to improve their Firm Performance.


2020 ◽  
Vol 30 (4) ◽  
pp. 457-490 ◽  
Author(s):  
Randy Kurniawan ◽  
Dyah Budiastuti ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih

Purpose This study aims to examine the impact of balanced agile project management (balanced APM) on firm performance through the mediating role of market orientation and strategic agility of medium and large telecommunication technology providers in Indonesia. Design/methodology/approach Research data was collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit through confirmatory factor analysis and causal relationships through structural equation modeling. Findings The results indicate that market orientation mediates the link between balanced APM and strategic agility and that strategic agility mediates the link between market orientation and firm performance. Research limitations/implications The choice of single telecommunication industry in a single country, Indonesia, provides a limitation on external validity. It is, therefore, suggested to extend the research efforts to other industry sectors in multi-country environments. Originality/value This study extends the knowledge about agile project management by embracing balancing control enforcement and tests it empirically. This study also re-conceptualizes strategic agility to embrace business partner switching capability and market orientation to embrace the inter-partner coordination dimension. Finally, the results highlight that agile project management needs to be framed by market orientation to create higher value for customers. However, market orientation alone is not enough and that the organization requires strategic agility to achieve firm performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zafran Ahmad ◽  
Liu Chao ◽  
Wang Chao ◽  
Saqib Ilyas

Purpose This article extends knowledge of market orientation (MO) and strategic collaboration by analyzing MO-collaborations in the context of firm performance of small- and medium-sized enterprises (SMEs). Design/methodology/approach A proposed framework built on the Knowledge and resource-based theory was tested using Structural Equation Modelling with data collected from 171 SMEs. Findings This research study supported the direct impact of market orientation on performance as well as the mediating role of collaboration in this focal relationship and assumed it would have a significant role in SME’s performance. Practical implications These findings have noteworthy implications for managers. Managers can focus on potential collaboration in order to acquire the needed assets. Owners-mangers should closely evaluate the FTAs, economic corridors, and regional cooperation agreements like BRI as these sources can lead them to collaboration with international partners. Additionally, it provides insight for entrepreneurs, business practitioners, and stakeholders of SMEs that are already operating or plan to increase their market share. Originality/value The study findings give interesting bits of knowledge to academia, entrepreneurs, and small- and medium-sized enterprises (SMEs). Given that market orientation and collaboration must proceed in parallel to improve firm performance, Assets like MO provide valuable knowledge and information about partners, which will lead to further valuable information to help the SME succeed. This study further extend the KBV theory recommendation that information and knowledge on collaboration works better and integration will be more successful in ‘resource rich’ firms.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Randy Kurniawan ◽  
Dyah Budiastuti ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih

Purpose This study aims to examine the effect of networking capability through market orientation and business process agility on the firm performance of medium and large telecommunication technology providers in Indonesia. Design/methodology/approach Research data was collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analysed the overall model fit and hypotheses through confirmatory factor analysis and structural equation modelling. Findings The results reveal that networking capability has a positive and significant effect on market orientation. However, networking capability does not have a significant direct effect on business process agility. The results also indicate that market orientation does not have a significant direct effect on firm performance but through the mediating role of business process agility. Practical implications The findings provide a practical foundation for the organisation’s networking capability to be framed by market orientation and business process agility to enhance firm performance. Originality/value The results indicate that market orientation mediates the relationship between networking capability and business process agility. The findings also reveal that business process agility mediates the relationship between market orientation and firm performance. This study also reconceptualises market orientation to embody the inter-partner coordination dimension and reconceptualise business process agility to embody business partner switching capability.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Clare D'souza ◽  
Marthin Nanere ◽  
Malliga Marimuthu ◽  
Mokhamad Arwani ◽  
Ninh Nguyen

PurposeDespite the theoretical advancements of market orientation and firm performance, there is a paucity of research regarding SMEs in Indonesia. Customer and competitor orientation were examined as two distinct constructs as per the literature, as it has been questioned for its robustness. They have been used synonymously, even though customer orientation is operationalised as a component of a market orientation construct. There is support for the argument from a theoretical point of view to keep customer orientation and competitor orientation separate. The objective of this research was to empirically test market orientation concepts on firm performance and assessing customer and competitor orientation separately. Furthermore, it also tests whether innovation plays a mediating role.Design/methodology/approachA sample of 309 small and medium-sized firms was found eligible for this study. Structural Equation Modelling was used to analyze the data. A multi-industry sample of firms was used to strengthen the generalisability of the results. The sample was acquired from two databases of SMEs directory in Kudus and Pati, East Java Indonesia, participants were randomly selected.FindingsThe findings show that innovation mediates the relationship between competitor orientation and firm performance, while competitor orientation had no significant relationship with firm performance. Customer orientation was found to positively influence firm performance.Originality/valueThe role of innovation as a mediator within SMEs in a developing country opens up avenues for further research among other developing countries. By examining both the concepts of customer and competitor orientation separately and establishing relationships, we validate support for this argument both from a methodological and theoretical point of view.


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