Exploring the indirect role of green business practices in transmitting eco-market orientation into positive organizational outcomes: an empirical study

PurposeThis study aims to examine whether the types of eco-market orientation (eco-proactive market orientation and eco-responsive market orientation) result in green knowledge acquisition and positive organizational outcomes (green customer satisfaction [GCS], green brand image [GBI] and green value-based competitiveness [GVC]). The study further aims to explore the mediation role of green business practices in the relationship between the types of eco-market orientation and organizational outcomes.Design/methodology/approachQuestionnaire was used to garner data from managers from Ghanaian hospitality firms. The hypothesized relationships were tested using partial least square structural equation modeling.FindingsThe result confirms the notion that although both eco-proactive market orientation and eco-responsive market orientation contribute significantly to enhancing the acquisition of green knowledge, eco-responsive market orientation has a strong effect on green knowledge acquisition. Also, the outcome of the mediation analysis proves that green business practices (GBPs) play an important indirect role in the relationship between eco-market orientation (eco-proactive market orientation and eco-responsive market orientation), GCS, GBI and GVC.Originality/valueAnchored on the resource advantage theory and natural resource-based view theory, this study offers a fresh contribution to marketing and environmental management literature by developing a unified research model that explores the mediation roles of GBPs between the types of eco-market orientation (eco-proactive market orientation and eco-responsive market orientation), GCS, GBI and GVC.

Proactive market orientation and business model innovation to attain superior new smart connected products performance

Purpose Smart connected products (SCP) are the new archetype of products evolving. SCP are subtly changing the product-centric business to system-centric. Development and monetization of new SCP is an uphill task, it necessitates unique market orientation and business models. The purpose of this study is to establish a framework of variables influencing new smart connected products performance (NSCPP) at the market place, suggest methods to operationalize the framework. Design/methodology/approach The study identified key variables influencing NSCPP from existing literature. Conceptualized unique theoretical frameworks of these variables and empirically validated structural relationships. The study performed structural equation modeling using the data collected from 163 respondents having managed the development and monetization of 138 new SCP launches. Findings The study established structural relationships among selected variables proactive market orientation (ProMO), new product development proficiency (NPDPro) and business model innovation (BMoI). It revealed that the effect of ProMO is manifested through NPDPro. BMoI and NPDPro significantly influence NSCPP. Practical implications The study presented “ProMO Canvas” to plan and operationalize ProMO integrated with new product development (NPD) stage-gate activities. The study suggested the practitioners to execute ProMO activities preceding NPD activities and execute NPD, business model development activities in parallel to attain superior NSCPP. Originality/value This study is a novel effort to derive a unique empirical framework of variables ProMO, NPDPro and BMoI to attain superior NSCPP.

Roles of strategic orientations in radical product innovation

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.

Importance of Innovation Resources for Market Orientation – Financial Performance Link: Mediating Role of Proactive Market Orientation

The purpose of this paper is to explore the relationship between market orientation, innovation resources and companies’ financial performance. Focus is put on the mediator role of proactive market orientation (PMO) in the relationship between reactive market orientation (RMO), innovation resources and financial performance in the context of Central and Eastern European (CEE) countries. Research builds on reliable scales. Four hundred and fifteen usable questionnaires were collected from companies in Slovenia with more than 20 employees. The results show a strong and positive relationship between RMO and PMO. The impact of RMO on innovativeness as an element of organisational culture is both positive and stronger than the impact of PMO. PMO proved to have a significant positive influence on the capacity to innovate. While innovativeness alone does not directly influence financial performance, the results do confirm the positive impact of an organisational capacity to innovate on financial performance. The finding of our paper is that when PMO was included as a mediator between RMO and the capacity to innovate, the result was that this indirect impact proved to be one of the strongest in the model. Also, it proves that in CEE countries, it is important to stress the influence of market and market orientation in building innovation resources and consequently financial performance. The limitation of the current study is that we considered the relationship only among few marketing resources and organisational performance. In future research, additional measures of market performance may be introduced as mediators between innovation resources and financial performance.

Nonlinear and complementary effects of responsive and proactive market orientation on firms’ competitive advantage

Purpose The purpose of this paper is to clarify how responsive market orientation (RMO) and proactive market orientation (PMO) create competitive advantage. Design/methodology/approach Nonlinear and interaction effects are tested by applying hierarchical regression analysis to a sample of 272 Colombian manufacturing companies. Findings The results show that although market orientation promotes the competitive advantage of a business, both approaches – responsive and proactive – exhibit saturation effects and a positive interaction. Research limitations/implications The main limitation of this study is the cross-sectional design and the use of a single source for data collection. It is suggested that future research includes different orientations combined with these two market orientations – responsive and proactive – for achieving competitive advantage. In addition, further studies could replicate this analysis for different environmental conditions. Originality/value This paper simultaneously evaluates the nonlinear and complementary effects of RMO and PMO. From a strategic standpoint, it presents an empirical confirmation of the familiarity trap, the failure trap and the positive effects of combining RMO and PMO.

Presentation and Communication of Financial Information for Investment Decision: Synthesis of the Literature

The focus of investment failure is seen as consequential to investors’ irrational decision. Capital structure and classical theories, by literature, informed the investor in making their portfolio choices. Currently behavioural finance positslack of cognitive and psychological capacity of the investor in the use of complex information to make a rational investment decision. The rationality of information, how presented and communicated by management is not on the radar of experts and analysts. Literature is reviewed, addressing the presentation and communication of financial information in proactive market orientation for rational investment decision.The studyposits the relevance of communicating financial information in proactive market orientation as againstthe linearone‐step modelapproach. Management should be responsible for any investment and corporate failure dependent on relevant financial information and how rationally communicated. Capital structure is a response of investors to management behaviour and not management choice.

The Effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance: A Case Study on MSMEs in the Culinary Field in D.I. Yogyakarta

This study aims to determine the effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance. The population in this study is the Micro, Small, and Medium Enterprise (MSME) in the Culinary Division at D.I. Yogyakarta and use 200 respondents as a sample. By using convenience sampling technique, the researchers have the freedom to choose any culinary MSME found around D.I. Yogyakarta to be the respondent. Hypothesis testing using Structural Equation Model (SEM) analysis. The findings show that there is a positive influence of responsive market orientation on product innovation performance, proactive market orientation on product innovation performance, product innovation performance on the company's market performance, and the company's market performance on the company's financial performance. The findings of this study contribute to MSMEs that information about market orientation adopted by business actors or companies can affect the performance of new product innovations in the market to improve the company's market performance which then affects the company's financial performance.