Does market orientation facilitate balanced innovation programs? An organizational learning perspective

Citation

Baker, W.E. (2008), "Does market orientation facilitate balanced innovation programs? An organizational learning perspective", Development and Learning in Organizations, Vol. 22 No. 1. https://doi.org/10.1108/dlo.2008.08122aad.004

Does market orientation facilitate balanced innovation programs? An organizational learning perspective

Does market orientation facilitate balanced innovation programs? An organizational learning perspective

Baker W.E., Sinkula J.M. The Journal of Product Innovation Management, July 2007 Vol 24 No 4, Start page: 316, No of pages: 19

Purpose – The purpose of the paper is to determine if firms’ market orientation assists balanced innovation. Design/methodology/approach – Overviews radical and incremental innovation in light of adaptive and generative learning, which lead, respectively, to new product success via customer-led incremental innovation and “lead the customer” radical innovation. Observes researchers believe market-oriented firms are able to adopt the latter innovation strategy, but notes others believe such orientation also requires adaptive learning to optimize innovation through both approaches. Explores this by developing several hypotheses into a structural equation model (SEM) covering market orientation (adapted MARKOR scale, organizational learning style (generative, adaptive, gleaning), innovation priority (radical, incremental, initiative) and new product success (relative to competitors). Tests these by surveying US marketing executives at vice-president level or above, of OEM and consumer product firms. Analyses 243 questionnaire (appended) returns (15.1 per cent response) for unidimensionality, discriminant, and convergent validity, and confirmatory factor analyses (for three SEMs). Findings – Establishes, inter alia that: high MARKOR score firms operate a balanced approach; radical innovation priority is positively related to new product success (imitation negatively); and, market orientation has positive indirect effects on new product success via generative-learning-inspired innovation (gleaning negatively). Research limitations/implications – The paper recognizes limitations as the survey’s subjective assessment approach. Seeks further research into operationalization of market orientation. Practical implications – Opines long-term innovation success requires both approaches, so managers should encourage appropriate organizational learning. Originality/value – The paper shows that firms with strong market orientation are likely to be capable of both incremental and radical innovation.ISSN: 0737-6782Reference: 36AS147

Keywords: Innovation, New products, Organizational learning, Product development, R&D, Strategic choices