Strategic orientations, marketing capabilities and radical innovation launch success

Abstract

Purpose The purpose of this paper is to develop a radical innovation launch model that shows the relationship of the market, entrepreneurial and learning orientations with each other, with radical innovation launch marketing capabilities and the subsequent effect on radical innovation launch success. It will provide practitioners with best practices and add to current marketing theory. Design/methodology/approach An online survey was done, resulting in a usable sample of 176 radical innovation launch practitioners from a cross-section of US companies, namely, small to large, business-to-business and business-to-consumer firms offering a variety of products and services. A partial least squares structural equation modeling technique was used to test construct relationships and the effect on each other. Findings An organizational learning orientation has a direct effect on the market and entrepreneurial orientations. Learning and marketing orientations are critical links to having radical innovation launch marketing capabilities. While an entrepreneurial orientation has a direct effect on radical innovation launch success, proper, dynamic marketing capabilities are a significant driver. Over 40% of the variance in radical innovation launch success is directly or indirectly affected by the three studied strategic orientations and radical innovation launch marketing capabilities. Research limitations/implications This study was conducted only in the USA. A cross-cultural study could be undertaken. Type and size of firm, type of external environment, radical innovation department structure, transformational leadership strength and competitive intensity effect could be studied. New, up-to-date adaptable marketing capabilities should be researched and validated. Practical implications For radical innovation launch success, it is critical that a firm develop the market, entrepreneurial and learning orientations and have specific, dynamic marketing capabilities in place. Existing managers should be trained, or new talent hired, to give the firm the capability to develop unique, radical innovation launch strategic, brand identity and new target market plans, to select and manage new downstream partners, and to have quick, customer launch feedback mechanisms in place. Originality/value An empirical study of the effect of all three strategic orientations on radical innovation launch marketing capabilities and subsequent radical innovation launch success has not been previously addressed.

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Are born global firms really a “new breed” of exporters? Empirical evidence from an emerging market

“…Liu et al (2020) suggested that the possible missing link between learning orientation and financial performance could be the relationship between knowledge internalization and international marketing performance. In addition, Cake et al (2020) found that learning orientation has an impact on radical innovation launch success through marketing capabilities. Ismail and Kuivalainen (2015) observed that firms with international scope and global scope have different levels of internal capabilities; the former relies more on founders' foreign experiential knowledge, while the latter has heterogeneous capabilities such as dynamic marketing capabilities.…”

“…Market orientation refers to a firm's focus on market needs and its sensitivity to changes in the market environment. Market orientation is often an antecedent of marketing capabilities, which have been tested in many international marketing studies (Acikdilli et al, 2020;Alnawas and Farha 2020;Cake et al 2020), but market orientation in the BG context has yet to receive much attention (Øyna and Alon 2018). Relatedly, Morgan et al (2018) observed that there is insufficient interaction between the academic literature on international business and international marketing in terms of empirical research on BG firms.…”

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“…Radical innovations are well-recognized for their importance to enable renewal and long-term business growth (Cake et al, 2020). Research on knowledge intense firms illustrates that a difference can be detected between radical and incremental innovations (Van Poucke, 2005).…”