THE RELATIONSHIP BETWEEN MARKET ORIENTATION AND ORGANIZATIONAL INNOVATION: THE ROLE OF THE SHR PRACTICES

Year 2014, Volume: 9 Issue: 2, 121 - 135, 01.12.2014

Mine Afacan Fındıklı Yasin Rofcanı·n Uğur Yozgat

Abstract

The current study was an effort to test the effects of market orientation and strategic human resources practices (SHR) over organizational level innovation. In an era where companies need to implement key strategic human resources and be market oriented, we aimed at testing the effects of these two important perspectives with data drawn collected from the IT industry (N = 174). Results showed that only participation in decision making from SHR practices and customer orientation from market orientation predicted organizational level innovation positively. Moreover, our findings also emphasized that the relationship between SHR practices and organizational level innovation were more pronounced for companies which had high degrees of market orientation. Our findings speak to significant managerial implications and emphasize the need to include employees in decision making processes. Further suggestions, limitations and conclusions are also discussed

Keywords

market orientation, technical innovation, managerial innovation, human resources practices

THE RELATIONSHIP BETWEEN MARKET ORIENTATION AND ORGANIZATIONAL INNOVATION: THE ROLE OF THE SHR PRACTICES

Abstract

The current study was an effort to test the effects of market orientation and strategic human resources
practices (SHR) over organizational level innovation. In an era where companies need to implement key
strategic human resources and be market oriented, we aimed at testing the effects of these two important
perspectives with data drawn collected from the IT industry (N = 174). Results showed that only
participation in decision making from SHR practices and customer orientation from market orientation
predicted organizational level innovation positively. Moreover, our findings also emphasized that the
relationship between SHR practices and organizational level innovation were more pronounced for
companies which had high degrees of market orientation. Our findings speak to significant managerial
implications and emphasize the need to include employees in decision making processes. Further
suggestions, limitations and conclusions are also discussed.

Keywords

market orientation

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