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The relationships between responsive and proactive market orientation and innovation performance in family firms
 

The relationships between responsive and proactive market orientation and innovation performance in family firms

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The relationships between responsive and proactive market orientation and innovation performance in family firms. ...

The relationships between responsive and proactive market orientation and innovation performance in family firms.

Paper presented at EIASM 2010 Workshop on Family Firms Research in Barcelona (Spain).

Authors: Lien Beck, Marion Debruyne, Wim Janssens, Tinne Lommelen (Hasselt University, Belgium)

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    The relationships between responsive and proactive market orientation and innovation performance in family firms The relationships between responsive and proactive market orientation and innovation performance in family firms Presentation Transcript

    • The relationships between responsive and proactive market orientation and innovation performance in family firms
      Lien Beck, Marion Debruyne, Wim Janssens, Tinne Lommelen (Hasselt University, Belgium)
    • Outline
      Purpose
      Literature review
      Market orientation and innovation performance
      The relationship between market orientation and innovation performance in a family firm context
      Research methodology
      Results
      Conclusion
    • Competitive intensity
      Market orientation
      Responsive market orientation
      Innovation performance
      Proactive market orientation
      Generational involvement
      Purpose
      • The relationships between responsive and proactive market orientation and innovation performance in a family firm context
      • Taking into account the moderating influence of
      • generational involvement
      • competitive intensity
    • Market orientation and innovation performance
      • Originated in the early 1990s
      • Definition: A firm’s ability to generate and disseminate market intelligence and to respond on it (Kohli & Jaworski, 1990)
      • 2 dimensions (Narver et al., 2004):
      • Responsive MO – current customers and their expressed needs
      • Proactive MO – customers’ latent needs
      • Responsive and proactive MO have a positive influence on innovation performance
    • Market orientation – innovation performance in family firms
      • Generational involvement
      • Creates a distinction in the group of family firms
      • Moderating influence because of difference in:
      • Innovation orientation
      • External orientation
      • Decision-making structure
      H1a: The positive influence of responsive market orientation will be more strongly associated with innovation performance in subsequent generations than in first generation family firms.
      H1b: The positive influence of proactive market orientation will be more strongly associated with innovation performance in subsequent generations than in first generation family firms.
    • Market orientation – innovation performance in family firms
      • Competitive intensity
      • Frequently considers as moderating factor in the MO – innovation relationship
      • Moderating influence because of:
      • Monitoring customers’ needs becomes more important because customers have plenty alternative sources to satisfy their needs
      • Necessity of exploring new knowledge increases
      H2a: The positive influence of responsive market orientation will be more strongly associated with innovation performance when family firms act in markets with high competitive intensity.
      H2b: The positive influence of proactive market orientation will be more strongly associated with innovation performance when family firms act in markets with high competitive intensity.
    • Researchmethodology
      • Sample: Project ‘Strategic Innovation’
      • 63 family firms
      • Measures
      • Questionnaire
      • MO and innovation performance: Validated scales of Likert-type from 1 to 5
      • Interview
      • Generational involvement
      • Perception of competitiveness in the market
      • 2 control variables
      • Size and age of the firms
      • Analysis
      • Multiple regression
    • Results
      * p<.10; ** p<.05; ***p<.01
    • Results - Discussion
      • Responsive and proactive MO are positively associated with innovation performance in family firms
      • Competitive intensity exercises a moderating effect with proactive MO
      • Contrary to our expectations, competitive intensity restrains the positive effect of proactive MO on innovation performance
    • Conclusion
      • Limitations
      • SI-database
      • Limited sample
      • Cross-sectional research
      • Future research
      • Other interesting context variables
      • Differentiate between more generations
      • More complex models
    • Conclusion
      • Generational involvement exercises no moderating effect on the relationship between MO and innovation performance
      • Competitive intensity negatively moderates the influence of proactive MO on innovation performance
      • This study emphasizes the importance of research on the relationship between MO and innovation in the special context of the family firm
    • Questions?
      Suggestions?
      For more information: lien.beck@uhasselt.be