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)

1. 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)

2. 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

4. Taking into account the moderating influence of

5. generational involvement

7. Definition: A firm’s ability to generate and disseminate market intelligence and to respond on it (Kohli & Jaworski, 1990)

8. 2 dimensions (Narver et al., 2004):

9. Responsive MO – current customers and their expressed needs

10. Proactive MO – customers’ latent needs

12. Creates a distinction in the group of family firms

13. Moderating influence because of difference in:

14. Innovation orientation

15. External orientation

16. Decision-making structureH1a: 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.

18. Frequently considers as moderating factor in the MO – innovation relationship

19. Moderating influence because of:

20. Monitoring customers’ needs becomes more important because customers have plenty alternative sources to satisfy their needs

21. Necessity of exploring new knowledge increasesH2a: 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.

23. 63 family firms

24. Measures

25. Questionnaire

26. MO and innovation performance: Validated scales of Likert-type from 1 to 5

27. Interview

28. Generational involvement

29. Perception of competitiveness in the market

30. 2 control variables

31. Size and age of the firms

32. Analysis

35. Competitive intensity exercises a moderating effect with proactive MO

37. SI-database

38. Limited sample

39. Cross-sectional research

40. Future research

41. Other interesting context variables

42. Differentiate between more generations

44. Competitive intensity negatively moderates the influence of proactive MO on innovation performance