Analyzing the Effects of Market and Resource Orientations on Innovative Outcomes in Times of Turbulence^*

Abstract

Innovation and new product success are often a core precursor to superior performance. Although research has examined the resource-based view (RBV) and market orientation (MO) individually, limited research has evaluated and compared their effect on innovation and new product success in one study. Furthermore, relative to MO, comparatively less research has been conducted to evaluate the relationship between organizational learning (OL) and the RBV to examine their effects on a firm's ability to innovate and succeed. The purpose of this paper is to investigate the role of environmental variables (i.e., market turbulence and technological turbulence) on the relationship between two strategic orientations and performance and to extend a previous study. Specifically, it aims to evaluate whether a focus on the customer or the firm will impact innovation, product quality, new product success, financial performance, and customer value in settings of varying environmental turbulence. Data were collected from more than 200 senior executives. LISREL was applied to evaluate the relationships under examination. Interaction effects were assessed using a nested goodness-of-fit strategy using a multiple-group solution. Results depicted significant relationships between organizational learning and both resource and market orientations. Significant relationships also emerged between each strategic orientation and various performance indicators. Interaction effects were observed for market turbulence on customer value and market orientation as well as for resource orientation (RO) on innovation in times of high technological turbulence. The paper concludes with a review of theoretical and managerial implications to stimulate further debate. These results suggest that managers seeking innovation and new product success cannot afford to ignore the environment and do so at their peril. The provision of customer value is essential for positive financial performance. Thus, management needs to monitor environmental contexts so that they are able to adjust their investment in market orientation and the requisite processes that enable its implementation. Conversely, the effects of RO on performance are more robust across industry conditions, presenting an alternative avenue for management to achieve market superiority. The paper concludes with a review of theoretical and managerial implications to stimulate further debate.

Determinants of Agri‐food Firms’ Participation in Public Funded Research and Development

“…Finally, though the managerial literature reflects a broad agreement on innovation as a key driver for firms' success (Paladino, 2008), further evidence is needed on the question about not only the factors affecting R&D participation but also the impact of R&D on agri-food firms' performance in rural and urban areas…”

O Papel Da Open-Mindedness No Sucesso De Novos Produtos Das Organizações

“…Rijsdijk, Langerak e Hultink (2011) acrescentam que, sob essas condições, a atmosfera do mercado pode ser considerada incerta e instável. Em outras palavras, em períodos de alta turbulência de mercado as organizações possuem uma maior dificuldade em pesquisar a evolução das necessidades de seus consumidores, pois é mais complicado obter informações atualizadas (PALADINO, 2008).…”

Business strategies, profitability and efficiency of production

“…A clear consensus in the literature about the influence of the innovation indicates its relevance to economic performance in both organizations and countries (Paladino, 2008). This is due, among other reasons, to the fact that companies adopting innovativeness attitude are better able to protect themselves in an unstable environment, respond rapidly to changes and find the capacity to discover and exploit new products and market options (Miles & Snow, 1978).…”