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.

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)

Published in: Business, Education
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The relationships between responsive and proactive market orientation and innovation performance in family firms

  1. 1. The relationships between responsive and proactive market orientation and innovation performance in family firms<br />Lien Beck, Marion Debruyne, Wim Janssens, Tinne Lommelen (Hasselt University, Belgium)<br />
  2. 2. Outline<br />Purpose <br />Literature review<br />Market orientation and innovation performance<br />The relationship between market orientation and innovation performance in a family firm context<br />Research methodology <br />Results <br />Conclusion <br />
  3. 3. Competitive intensity<br />Market orientation<br />Responsive market orientation<br />Innovation performance<br />Proactive market orientation<br />Generational involvement<br />Purpose<br /><ul><li>The relationships between responsive and proactive market orientation and innovation performance in a family firm context
  4. 4. Taking into account the moderating influence of
  5. 5. generational involvement
  6. 6. competitive intensity</li></li></ul><li>Market orientation and innovation performance<br /><ul><li>Originated in the early 1990s
  7. 7. Definition: A firm’s ability to generate and disseminate market intelligence and to respond on it (Kohli & Jaworski, 1990)
  8. 8. 2 dimensions (Narver et al., 2004):
  9. 9. Responsive MO – current customers and their expressed needs
  10. 10. Proactive MO – customers’ latent needs
  11. 11. Responsive and proactive MO have a positive influence on innovation performance</li></li></ul><li>Market orientation – innovation performance in family firms<br /><ul><li>Generational involvement
  12. 12. Creates a distinction in the group of family firms
  13. 13. Moderating influence because of difference in:
  14. 14. Innovation orientation
  15. 15. External orientation
  16. 16. Decision-making structure</li></ul>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. <br />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. <br />
  17. 17. Market orientation – innovation performance in family firms<br /><ul><li>Competitive intensity
  18. 18. Frequently considers as moderating factor in the MO – innovation relationship
  19. 19. Moderating influence because of:
  20. 20. Monitoring customers’ needs becomes more important because customers have plenty alternative sources to satisfy their needs
  21. 21. Necessity of exploring new knowledge increases</li></ul>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. <br />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. <br />
  22. 22. Researchmethodology<br /><ul><li>Sample: Project ‘Strategic Innovation’
  23. 23. 63 family firms
  24. 24. Measures
  25. 25. Questionnaire
  26. 26. MO and innovation performance: Validated scales of Likert-type from 1 to 5
  27. 27. Interview
  28. 28. Generational involvement
  29. 29. Perception of competitiveness in the market
  30. 30. 2 control variables
  31. 31. Size and age of the firms
  32. 32. Analysis
  33. 33. Multiple regression</li></li></ul><li>Results<br />* p<.10; ** p<.05; ***p<.01<br />
  34. 34. Results - Discussion<br /><ul><li>Responsive and proactive MO are positively associated with innovation performance in family firms
  35. 35. Competitive intensity exercises a moderating effect with proactive MO
  36. 36. Contrary to our expectations, competitive intensity restrains the positive effect of proactive MO on innovation performance </li></li></ul><li>Conclusion<br /><ul><li>Limitations
  37. 37. SI-database
  38. 38. Limited sample
  39. 39. Cross-sectional research
  40. 40. Future research
  41. 41. Other interesting context variables
  42. 42. Differentiate between more generations
  43. 43. More complex models </li></li></ul><li>Conclusion<br /><ul><li>Generational involvement exercises no moderating effect on the relationship between MO and innovation performance
  44. 44. Competitive intensity negatively moderates the influence of proactive MO on innovation performance
  45. 45. This study emphasizes the importance of research on the relationship between MO and innovation in the special context of the family firm </li></li></ul><li>Questions? <br />Suggestions? <br />For more information: lien.beck@uhasselt.be<br />

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