Science Research Management ›› 2011, Vol. 32 ›› Issue (5): 68-77.

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The impact of market orientation on types and performance of product innovation

Zhang Jing, Duan Yanling   

  1. School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
  • Received:2009-06-08 Revised:2009-12-18 Online:2011-05-27 Published:2011-06-14

Abstract: The empirical research findings on whether or not and how market orientation impacts on product innovation are quite inconsistent, relevant studies rarely distinguish innovation types and empirical verification of export-oriented enterprises are not available. Based on a questionnaire survey of 220 Chinese export-oriented manufacturing enterprises, the following conclusion are drawn: (1) Two types of innovation are significantly positively related to the product innovation performance, and among them, the role of radical innovation is more significant; (2) Among three dimensions of export market orientation, customer orientation and inter-functional coordination have significant positive impact on radical and incremental innovations. In addition, inter-functional coordination impacts radical innovation more significantly, while customer orientation impacts incremental innovation more significantly; (3) inter-functional coordination has a greatest total effect on new product performance, customer orientation plays a less important role, and the impact of competitor orientation is not significant. Managerial implications on how to improve innovation activity and enhance product innovation performance are provided for Chinese export-oriented manufacturing enterprises.

Key words: market orientation, radical innovation, incremental innovation, product innovation performance, export-oriented manufacturing enterprise

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