The effects of market orientation on new service performance: the mediating role of innovation
Source: International Journal of Services Technology and Management, Volume 16, Number 1, August 2011 , pp. 49-73(25)
Publisher: Inderscience Publishers
Abstract:The empirical results of the relationship between market orientation and new service performance are mixed, implying that this relationship is more complicated than expected. To respond to this complication, this study takes a component-wise approach to investigate how three market orientation components contribute to new service performance by way of two service innovations and also examine how three environmental factors interact with each market orientation component to affect service innovation. Based on a survey of 235 senior managers using structural equation modelling, the results indicate that customer orientation has a positive relationship with incremental service innovation, while competitor orientation and inter-functional coordination are significantly associated with radical service innovation, and all of which positively lead to two types of new service performances. In addition, both market and technological turbulence significantly and positively moderate the relationship between customer and competitor orientations and service innovation.
Keywords: COMPUTING AND MATHEMATICS; Information Systems and Technology; Internet and Web Services; MANAGEMENT AND BUSINESS; Operational Management, Marketing and Services; Policy and Organisational Management; PUBLIC POLICY AND ADMINISTRATION; Public Policy and Public Services; MANAGEMENT AND BUSINESS; Technology Management
Document Type: Research article
Affiliations: 1: College of Management, Yuan Ze University, 135 Yuantung Rd. Chungli City, 320, Taiwan. 2: College of Business Administration, Idaho State University, Campus Box 8265, Administration 138, 921 South 8th Avenue, Pocatello, ID 83209, USA
Publication date: 2011-08-01