DOES THE LINK BETWEEN MARKETING ORIENTATION AND INNOVATION LEAD TO SUCCESS? A SURVEY BASED ON SEM IN TURKEY

Year 2014, Special Issue of XIV. International Symposium on Econometrics, Operations Research and Statistics, 419 - 440, 01.10.2014

Metin Reyhanlıoğlu , Özden Akın

Abstract

Innovation has
been long discussed to be an important element for sustaining a competitive
advantage. The relationship between market orientation and innovation has not
been argued enough in literature. Innovation can be defined as firms gain
position through an introduction of new technologies, production processes, and
products in the market place. According to the Schumpeterian view (1934) to
take a competitive advantage, firms should link between marketing and
innovation orientation. However, Drucker (1954) defines that the two basic
elements, of the firms’ are marketing and innovation, so that innovation
concept fits on the centrality of market orientation. The purpose of this study
is to investigate the impact of innovation on a firm's performance in the
context of product and marketing innovation among over 10.000 firms, the data
of which were provided by the Turkish Statistical Institute. It examines the relation
between firm innovation and financial performance as a firm performance
criterion. Structural Equation Modeling has used to analyze the possibility of
a marketing/innovation effect on performance model, as the basis of the
Community Innovation Statistics questionnaire survey.

Keywords

Innovation Orientation, Marketing Innovation, Product Innovation

PAZARLAMA YÖNLÜLÜK İLE INOVASYON ARASINDAKİ İLİŞKİ BAŞARIYI GETİRİR Mİ? TÜRKİYE’DE SEM TEMELLİ BİR ARAŞTIRMA

Abstract

İnovasyon,
rekabetin avantajının sürdürülmesinde önemli bir eleman olarak uzun süredir
tartışılmaktadır. Pazarlama odaklılık ile inovasyon arasındaki ilişki
literatürde yeterince tartışılmamıştır. İnovasyon firmaların yeni teknolojiler,
üretim süreçleri ve ürünler yoluyla pazarda bir pozisyon elde etmeleri olarak
tanımlanabilir. Schumpeteryan bakış açısına (1934) göre bir rekabet avantajı
elde etmek, firmaların pazarlama ile inovasyon odaklılık arasında bir bağ
oluşturmasıyla olmaktadır. Ancak, Drucker (1954) firmaların iki temel unsurunu
pazarlama ve inovasyon olarak açıklamakta ve inovasyon kavramını pazarlama
odaklılığının merkezine yerleşmektedir. Bu çalışmanın amacı, Türkiye İstatistik
Kurumu’ndan sağlanan yaklaşık 10.000’inin üzerinde firma verisi yoluyla ürün ve
pazar inovasyonu çerçevesinde inovasyonun firma performansı üzerindeki etkisini
araştırmaktır. Finansal performans ölçütü olarak finansal performans ile firma
inovasyonu arasındaki ilişki incelenmiştir. Pazarlama/İnovasyonun Performansa
Etkisi Modelinin analiz edilmesinde Topluluk İnovasyon İstatistikleri (Community Innovation Statistics) çerçevesinde
oluşturulmuş olan anket araştırması temelinde Yapısal Eşitlik Modeli
kullanılmıştır.

Keywords

Pazarlama Odaklılık, İnovasyon Odaklılık, Pazarlama İnovasyonu, Ürün İnovasyonu, Yapısal Eşitlik Modeli (SEM)

References

• Akova, B., Ulusoy, G., Payzın, E. & Kaylan, A. R. (1998). New product development capabilities of the Turkish electronics industry. In: Proceedings of the Fifth International Product Development Management Conference (pp. 863–876), Como, Italy,.
• Atuahene-Gima, K. (1996). Market orientation and innovation. Journal of Business Research, 35, 93-103.
• Ayyagari, M., Demirgüç-Kunt, A. & Maksimovic, V. (2011). Firm innovation in emerging markets: The role of finance, governance, and competition. Journal of Financial and Quantitative Analysis, 46(6), 1545-1580.
• Banbury, C. M. & Mitchell, W. (1995). The effect of introducing important incremental innovations on market share and business survival. Strategic Management Journal, 16, 161−182.
• Berry, L. L. (2002). Relationship marketing of services perspectives from 1983 and 2000. Journal of Relationship Marketing, 1(1), 59-77.
• Berthon, P., Hulbert, J. M. & Pitt, L. F. (1999). Brand management prognostications. Sloan Management Review, 40(2), 53-65.
• Brown, S. L. & Eisenhardt, K. M. (1997). The art of continuous change: linking complexity theory and timepaced evolution in relentlessly shifting organizations. Administrative Science Quarterly, 42, 1–34.
• Calantone, R. J. & di Benedetto, C. A. (1988). An integrative model of the new product development process: An empirical validation. Journal of Product Innovation Management, 5(3), 201–215.
• Camisón, C. & Monfort-Mir, V. M. (2012). Measuring innovation in tourism from the Schumpeterian and the dynamic-capabilities perspectives. Tourism Management, 33(4), 776–789.
• Carbonell P. & Rodriguez A. (2006). The impact of market characteristics and innovation speed on perceptions of positional advantage and new product performance. International Journal of Research in Marketing, 1(March), 1-12.
• Cassiman, B. & Veugelers, R. (2002). R&D cooperation and spillovers: some empirical evidence from Belgium. American Economic Review 92(4), 1169–1184.
• Chen, Y., Lin, M. J. & Chang, C. H. (2009). The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets. Industrial Marketing Managemen,t 38, 152–158.
• Cooper, R. G. & de Brentani, U. (1991). New industrial financial services: What distinguishes the winners. Journal of Product Innovation Management, 8, 75-90.
• Cooper, R. G. & Kleinschmidt, E. J. (1987). New products: what separates winners from losers?. Journal of Product Innovation Management, 4(3), 169-184.
• Cooper, R. G. & Kleinschmidt, E. J. (1995). Performance typologies of new product projects. Industrial Marketing Management 24, 439-456.
• Daft, R. L. (1978). A dual-core model of organizational innovation. The Academy of Management Journal, 21(2), 193-210.
• Damanpour, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. The Academy of Management Journal, 34(3), 555-590.
• Damanpour, F, Walker, R. M. & Avellaneda C. N. (2009). Combinative effects of Innovation types and organizational performance: A Longitudinal study of service organizations. Journal of Management Studies, 46(4), 650–674.
• Danneels, E. (2002). The dynamics of product innovation and firm competences. Strategic Management Journal, 23, 1095-1121.
• Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58, 37−52.
• Deshpande, R., Farley, J. U. & Webster, F. E. (1993). Corporate culture, customer orientation, and innovativeness in Japanese firms: A Quadrad Analysis. Journal of Marketing, 57, 22-27.
• Dibrell, C., Craig, J. B. & Hansen, E. N. (2011). How managerial attitudes toward the natural environment affect market orientation and innovation. Journal of Business Research, 64(4), 401-407.
• Drechsler, W. & Natter, M. (2012). Understanding a firm's openness decisions in innovation. Journal of Business Research, 65(3), 438-445.
• Drucker, P. F. (1954). The practice of management. New York: Harper & Brothers.
• Drucker, P. F. (1985). Innovative and entrepreneurship practice and principles. New York: Harper & Row. Retrieved April 7, 2013 from http://www.extension.iastate.edu/agdm/wholefarm/pdf/c5-10.pdf
• Ehie, I. C. & Olibo, K. (2010). The effect of R&D investment on firm value: An examination of US manufacturing and service industries. International Journal of Production Economics, 128(1), 127-135.
• Govindarajan, V. & Kopalle, P. K. (2006). The usefulness of measuring disruptiveness of innovations ex post in making ex ante predictions. Journal of Product Innovation Management, 23(1), 12–18.
• Grewal, R. & Tansuhaj, P. (2001). Building organizational capabilities for managing economic crisis: the role of market orientation and strategic flexibility. The Journal of Marketing, 65(2), 67-80.
• Griffin, A. & Hauser, J. R. (1996). Integrating R&D and marketing: A review and analysis of the literature. The Journal of Product Innovation Management, 13(3), 191-215.
• Gunday, G., Ulusoy, G., Kılıc, K. & Alpkan, L. (2011). Effects of innovation types on firm performance. International Journal Production Economics, 133, 662-676.
• Hair, J. F., Black, W. C., Babin, B. J. Anderson, R. E. & Tatham, R. L. (2006) Multivariate Data Analysis (6th ed.). New Jersey: Pearson Prentice Hall.
• Han, J. K., Kim, N. & Srivastava, R. K. (1998). Market orientation and organizational performance: is innovation a missing link?. The Journal of Marketing, 62(4), 30-45.
• He, Z. & Wong, P. (2004). Exploration vs. exploitation: An empirical test of the ambidexterity hypothesis. Organization Science, 15(4), 481−494.
• Houstan, F. S. (1986). The marketing concept: What it is and what it is not. Journal of Marketing, 50, 81-87.
• Iyer, G. R., LaPlaca, P. J. & Sharma, A. (2006) Innovation and new product introductions in emerging markets: Strategic recommendations for the Indian market. Industrial Marketing Management, 35(3),. 373–382.
• Jaworski, B. J. & Kohli, A. K. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57, 53-70.
• Kessler, E. H. & Bierly, P. E. III. (2002). Is faster really better? An empirical test of the implications of innovation speed. Engineering Management, IEEE Transactions, 49(1), 2-12.
• Kim, N. & Atuahene‐Gima, K. (2010). Using exploratory and exploitative market learning for new product development. Journal of Product Innovation Management, 27(4), 519-536.
• Kirca, A. H., Jayachandran, S. & Bearden, W. O. (2005). Market orientation: a meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing, 24-41.
• Kohli, A. K. & Jaworski, B. J. (1990). Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1-18.
• Kotler, P. (1991). Marketing management: Analysis, planning, implementation and control (7th ed.). New Jersey: Prentice-Hall International.
• Laforet, S. (2008). Size, strategic, and market orientation affects on innovation. Journal of Business Research, 61, 753–764.
• Lambert, D. & Slater, S. F. (1999). Perspective: First, fast, and on time: The path to success. Or is it?. Journal of Product Innovation Management, 16 (5), 427–438.
• Laursen, K. & Salter, A. (2006). Open for innovation: The role of openness in explaining innovation performance among UK manufacturing firms. Strategic Management Journal, 27(2), 131-150.
• Lawton, L. & Parasuraman, A. (1980). The impact of the marketing concept on new product planning, Journal of Marketing, 44(1), 19–26.
• Lukas, B. A. & Menon, A. (2004). New product quality: intended and unintended consequences of new product development speed. Journal of Business Research, 57(11), 1258-1264.
• Manu, F. A. & Sriram, V. (1996), Innovation, Marketing Strategy, Environment and Performance. Journal of Business Research 35(1): 79-91.
• March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71−87.
• Mariadoss, B. J., Tansuhaj, P. S. & Mouri, N. (2011). Marketing capabilities and innovation-based strategies for environmental sustainability: An exploratory investigation of B2B firms. Industrial Marketing Management, 40, 1305-1318.
• McEvily, S. K., Eisenhardt, K. M. & Prescott, J. E. (2004). The global acquisition, leverage, and protection of technological competencies. Strategic Management Journal, 25, 713−722.
• Narver, J., C. & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20-34.
• Nerkar, A. & Roberts, P. W. (2004). Technological and product–market experience and the success of new product introductions in the pharmaceutical industry. Strategic Management Journal, 25, 779−799.
• O'Cassa, A. & Ngo L. V. (2011). Winning through innovation and marketing: Lessons from Australia and Vietnam, Industrial Marketing Management, 40(8), 1319–1329.
• O'Cass, A. & Weerawardena, J. (2009). Examining the role of international entrepreneurship, innovation and international market performance in SME internationalization. European Journal of Marketing, 43(11/12), 1325–1348.
• O'Driscoll, A., Carson, D. & Gilmore, A. (2000). Developing Marketing Competence and Managing in Networks: A strategic approach. Journal of Strategic Marketing, 8(2), 183-196.
• O'Reilly, C. A. & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: Resolving the innovator's dilemma. Research in Organizational Behavior, 28, 185−206.
• OECD. (2005) Oslo manual: Guidelines for collecting and interpreting innovation data (3rd ed.). France: OECD Publishing. Retrieved April 7, 2013 from http://www.sourceoecd.org/scienceIT/9264013083
• Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y. & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology 88, 879-903.
• Quadros, F. A., Roberto, B. & Franco, E. (2001). Technological innovation in Brazilian industry: An assessment based on the Sao Paulo innovation survey. Technological Forecasting and Social Change, 67, 203–219.
• Ruekert, R. W. (1992). Developing a market orientation: An organizational strategy perspective. International Journal of Research in Marketing, 9(3), 225-245.
• Schaefer, S. (1999). Product design partitions with complementary components. Journal of Economic Behavior & Organization, 38 (3), 311-330.
• Schumpeter, J. A. (1934). The Theory of Economic Development. Translated by Redvers Opie, Cambridge: Harvard University Press. Retrieved April 7, 2013 from http://books.google.fr/books?id=-OZwWcOGeOwC&printsec=frontcover&hl=fr&source=gbs_ge_summary_r&cad=0
• Slater, S. F. & Narver, J. C. (1994). Does competitive environment moderate the market orientation-performance relationship?. Journal of Marketing, 58, 46-55.
• Slevin, D. P. & J. G. Covin (1994). Entrepreneurship as firm behavior: A research model. In J. E. Katz, & R. H. Brockhaus (ds.), Advances in firm emergence, growth and entrepreneurship (pp. 175–224). Greenwich CT: JAI Press.
• Song, X. M. & Parry, M. E. (1997). The determinants of Japanese new product successes. Journal of Marketing Research, 36, 64-76.
• Sorescu, A. B., Chandy, R. K. & Prabhu, J. C. (2003). Sources and financial consequences of radical innovation: Insights from pharmaceuticals. Journal of Marketing, 67, 82−102.
• Szymanski, D. M. & Henard, D. H. (2001). Customer satisfaction: A meta-analysis of the empirical evidence. Journal of The Academy of Marketing Science, 29(1), 16-35.
• Tajeddini, K., Trueman, M. & Larsen, G. (2006). Examining the effect of market orientation on innovativeness. Journal of Marketing Management, 22(5-6), 529-551.
• Teece, D. J. (1987). The competitive challenge: Strategies for industrial innovation and renewal. Camridge MA: Ballinger Pub. Co.
• The European Commission (1995). Green Paper on innovation. Retrieved February 12, 2012 from http://europa.eu/documents/comm/green_papers/pdf/com95_688_en.pdf.
• Tsai, W. (2001). Knowledge transfer in intra-organizational networks: Effects of network position and absorptive capacity on business unit innovation and performance. Academy of Management Journal, 44, 996–1004.
• TurkStat (2013), Retrieved March 13, 2013 from http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=8638
• Tushman, M. L. & O'Reilly III, C. A. (1997). Winning through innovation: A practical guide to leading organizational change. Boston, MA: Harvard Business School Press.
• Vieira, A. L. (2011). Interactive LISREL in Practice, Berlin: Springer, (Chapter 2), [Online] Available: http://www.springer.com/cda/ content/document/cda_downloaddocument/9783642180439-c1.pdf?SGWID=0-0-45-1113983-p174094763 (April 7, 2013).
• Wang, E. T. G. & Wei, H. L. (2005). The importance of market orientation, learning orientation, and quality orientation capabilities in TQM: An example from Taiwanese software industry. Total Quality Management, 16(10), 1161–1177.
• Weerawardena, J. & O’Cass, A. (2004), Exploring the characteristics of the market-driven firms and antecedents to sustained competitive advantage. Industrial Marketing Management, 33, 419–428.
• Yalcinkaya, G., Calantone, R. J. & Griffith, D. A. (2007). An examination of exploration and exploitation capabilities: Implications for product innovation and market performance. Journal of International Marketing, 15(4), 63−93.