Essay on Marketng

983 Words Jun 14th, 2014 4 Pages
Jin K. Han, Namwoon Kim, & Rajendra K. Srivastava

Market Orientation and Organizational Performance: Is Innovation a Missing Link?
In recent years, a market-oriented corporate culture increasingly has been considered a key element of superior corporate performance. Although organizational innovativeness is believed to be a potential mediator of this market orientation-corporate performance relationship, much of the evidence to date remains anecdotal or speculative. In this context, the authors present a systematic framework to test the postulated "market orientationinnovation-performance" chain. To this end, the direct causality assumption of market orientation on organizational performance is examined with Narver and Slater's (1990)
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In line with tbis reasoning, researchers have pursued extensively an understanding of the link between market orientation and perfonnance, investigating a direct causal link (Narver and Slater 1990; Ruekert 1992). a moderated relationship (Day and Wensley 1988; Diatiiantopoulos and Hart 1993; Greenley 1995; Jaworski and Kohli 1993; Slater and Narver 1994a). and even the roles of market orientation's antecedents (Jaworski and Kohli 1993).


Jin K. Han and Namwoon Kim are Assistant Protessors of Marketing, School of Business and Management, Hong Kong University of Science and Technology. Raiendra K. Srivastava is the Jack R. Crosby Regents Chair Professor, College and Graduate School of Business Administration, University of Texas at Austin. The authors thank the three anonymous JM reviewers for their helpful comments on a previous version of the article.

The interest in the assumed relationship between market orientation and performance ostensibly has remained steadfast for its apparent strategic importance. Innovation also is an important function of management because it is linked to business perfonnance, as has been demonstrated in many studies (e.g.. Damanpour and Evan 1984; Damanpour. Szabat. and Evan 1989; Khan and Manopichetwattana 1989; Zahra, de Belardino. and Boxx 1988). The fmdings uniformiy indicate that a robust

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