Market orientation and product innovation: the mediating role of technological capability

Abstract

PurposeThis study aims to examine the relationship between market orientation and product innovation and the mediating role of technological capability in this relationship. It also aims to examine the effect of market orientation on product innovation within the framework of technological intensity classification of the fields of business activity.Design/methodology/approachThe research data were obtained from 186 senior and mid-level managers of 627 manufacturing firms that are widely considered to be innovative, and that are ranked among Turkey's largest 1,000 manufacturing firms (ISO 1000). The data were analyzed using partial least squares structural equation modeling.FindingsCustomer orientation and interfunctional coordination, two distinct dimensions of market orientation, had positive effects on product innovation. Technological capability played a mediating role in the effect of customer orientation and interfunctional coordination on product innovation. In addition, interfunctional coordination positively affected product innovation in firms with low technological intensity, whereas customer orientation positively affected product innovation in firms with medium-high technological intensity.Practical implicationsFor the success of product innovations, firms should establish mechanisms to obtain information about customer needs and expectations and to disseminate and effectively use this information among organizational functions. They also need to improve their technological capabilities to effectively transform market knowledge into product innovation.Originality/valueThe relationship between market orientation and product innovation has been examined in previous studies; however, there is an insufficient number of studies on the mediating role of technological capability in this relationship. This study aimed to eliminate the gap in the literature regarding the mediating role of technological capability. In addition, innovation activities of firms vary depending on the technological intensity, but only a limited number of evaluations have been conducted on this subject. This study contributes valuable knowledge to the relevant literature by examining the impact of market orientation dimensions on product innovation according to technological intensity.

Peran Kemitraan Stakeholder Terhadap Kapabilitas Inovasi Dan Dampaknya Pada Kinerja Bisnis UKM Di Bali Dengan Mediasi Relational Quality

“…Yusof et al, (2021) Fokus klien ditemukan memiliki efek mediasi parsial komplementer pada hubungan antara inovasi dan kinerja keuangan perusahaan dan bahwa inovasi secara independen mempengaruhi kinerja keuangan perusahaan dengan pengaruh yang lebih kuat di perusahaan arsitektur daripada di kontraktor perusahaan. Aydin (2021) Kemampuan teknologi memainkan peran mediasi dalam pengaruh orientasi pelanggan dan koordinasi interfungsional pada inovasi produk. Selain itu, koordinasi interfungsional mempengaruhi inovasi produk secara positif di perusahaan dengan intensitas teknologi rendah, sedangkan orientasi pelanggan secara positif mempengaruhi inovasi produk di perusahaan dengan intensitas teknologi sedang-tinggi.…”

Antecedents and Consequences of Organizational Innovation: Study on Small and Medium Enterprises in the Consumer Goods Industry

“…O'Dwyer et al evaluated marketing innovation in SMEs [8]. Research on product innovation in manufacturing companies in Turkey was carried out by Aydin [9]. Other research in SMEs was conducted by Ko et al and Wahyono [10], [11].…”

Effect of Product Innovation on Performance of Printing Smes in Kampala Central District

“…In Turkey, Aydin (2020) focused on manufacturing firms to ascertain the effect of product innovation on performance. The research data were obtained from 186 senior and mid-level managers of 627 manufacturing firms that are widely considered to be innovative, and that were ranked among Turkey's largest 1,000 manufacturing firms.…”