Differential Mediat ing Effect s of Rad ica l and Incrementa l
Innovat ion on Market Or ientat ion–Performance Relat ionship:
A Meta -Analysis
Woojung Chang, George R. Franke, Timothy D. Butler, Carolyn F. Musgrove, and Alexander E. Ellinger
Research shows that innovation mediates the relationship between market orientation and firm performance.
However, researchers disagree on whether market orientation leads to differential emphases on
radical or incremental innovation, and how each type of innovation influences performance. Drawing
on organizational learning theory, this study clarifies these relationships through structural analysis of
meta-analytic correlations from 441 samples. The findings indicate that market orientation has similar
effects on firm performance for both manufacturers and service firms, but that radical and incremental
innovation play differential mediating roles across product types on the market orientation–performance
relationship. The findings offer new insights for both marketing theory and practice.
Differential Mediat ing Effect s of Rad ica l and Incrementa l
Innovat ion on Market Or ientat ion–Performance Relat ionship:
A Meta -Analysis
Woojung Chang, George R. Franke, Timothy D. Butler, Carolyn F. Musgrove, and Alexander E. Ellinger
Research shows that innovation mediates the relationship between market orientation and firm performance.
However, researchers disagree on whether market orientation leads to differential emphases on
radical or incremental innovation, and how each type of innovation influences performance. Drawing
on organizational learning theory, this study clarifies these relationships through structural analysis of
meta-analytic correlations from 441 samples. The findings indicate that market orientation has similar
effects on firm performance for both manufacturers and service firms, but that radical and incremental
innovation play differential mediating roles across product types on the market orientation–performance
relationship. The findings offer new insights for both marketing theory and practice.
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