- Research Article
- Published:
Relationships among market orientation, learning orientation, organizational innovation and organizational performance: An empirical study in the Pearl River Delta region of China
Frontiers of Business Research in China volume 1, pages 222–253 (2007)
Abstract
The purpose of this paper is to examine the relationships among market orientation, learning orientation, organizational innovation and organizational performance through a structural equation modeling approach. This study uses a sample of 143 companies in the Pearl River Delta region of China. Results show that (1) market orientation has no positive direct impact on organizational performance; (2) market orientation has a direct impact on learning orientation; (3) learning orientation has a direct impact on administrative and technical innovation; (4) market orientation has a direct impact on organizational innovation by learning orientation; (5) administrative innovation has a positive direct impact on organizational performance while technical innovation does not impact on organizational performance directly; (6) technical innovation has a positive impact on administrative innovation; (7) learning orientation has an indirect impact on organizational performance through influencing organizational innovation; (8) market orientation has impact on learning orientation, which has an impact on organizational innovation, which in turn has an impact on organizational performance. Managerial implications are discussed, along with suggestions for further research.
References
Argyris C, Schon D (1978). Learning orientation: A theory of action perspective. Reading. MA: Addison-Wesley
Argyris C (1977. Double loop learning in organizations. Harvard Business Review, (Sep./Oct.): 115–125
Bagozzi R P, Yi Y (1988). On the evaluation of structural equation models. Academy of Marketing Science, (16): 76–94
Baker W E, Sinkula J M (1999). The synergistic effect of market orientation and learning orientation on organizational performance. Journal of the Academy of Marketing Science, 27(4): 411–427
Chen Guoquan, Ma Meng (2000). Learning orientation: Current status and its futere. Journal of Management Science, (1): 66–74 (in Chinese)
Damanpour F, Evan W M (1984). Organizational innovation and performance: The problem of ‘Organizational Lag’. Administrative Science Quarterly, (Sep.): 392–409
Damanpour F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34(3): 555–590
Damanpour F, Szabat K A, Evan W M (1989). The relationship between types of innovation and organizational performance. Journal of Management Studies, (Nov.): 587–601
Drucker P F (1954). The Practice of Management. New York: Harper and Row Publishers
Foster G. (1986). Financial Statement Analysis. Englewood Cliffs, NJ: Pentice-Hall
Glynn M A (1996). Innovative genius: A framework for relating individual and organizational intelligences to innovation. Academy of Management Review, 21(4): 1081–1111
Hair J J, Anderson R, Tatham R, Black W (1998). Multivariate Data Analysis, 5th ed., Upper Saddle River, NJ: Prentice-Hall
Han J K, Kim N, Srivastava R K (1998). Market orientation and organizational performance: Is innovation a missing link? Journal of Marketing, 62(4): 30–45
Hult G T M, Ferrell O C (1997). Global learning orientation capacity in purchasing: Construct and measurement. Journal of Business Research, (40): 97–111
Jaworski B J, Kohli A K (1993). Market orientation: Antecedents and consequences. Journal of Marketing, (57): 53–70
Kohli, Jaworski (1990). Market orientation: The construct, research propositions & managerial implication. Journal of Marketing, 54(2): 1–18
Kumar K, Subramanian R, Yauger C (1998). Examining the market orientation-performance relationship: A context-specific study. Journal of Management, 24(2): 201–233
Langerak F (2003). An appraisal of research on the predictive power of market orientation. European Management Journal, 21(4): 447–464
Lin Yiping (2001). A Study of the Relationships among Market Orientation, Learning Orientation, Organizational Innovation and organizational performance: A case of the communication industry in science garden. Unpublished paper for doctor degree of business administration, National Sun Yat-Sen University (in Chinese)
Mabey C, Salaman G (1995). Strategic Human Resource Management. Oxford: Blackwell
March J G, Simon H (1958). Organizations. Oxford: Blackwell Business
McKee D (1992). An organizational learning approach to product innovation. Journal of Product Innovation Management, (9): 234
Narver J C, Slater S F (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4): 20–35
Porter M E (1980). Competitive Strategy: Techniques for Analysizing Industrial & Competitors. Oxford: Blackwell Ingram
Powell W W, Koput K W, Smith-Doerr L (1996). Interorganizational collaboration and locus of innovation: Networks of learning in biotechnology. Administrative Science Quarterly, (41): 116–145
Quinn J B (1986). Innovation and Corporate Strategy: Managed Chaos, in Technology in the Modern Corporation: A Strategic Perspective. Horwich M, ed. New York: Pergamon Press
Schumpeter J A (1934). The Theory of Economic Development. Boston: Harvard
Senge P M (1990). The Fifth Discipline. New York: Doubleday
Shapiro B P (1988). What the hell is ‘market oriented’? Harvard Business Review, (Nov./Dec.): 119–125
Sinkula J M, Baker W E, Noordewier T (1997). A framework for market-based organizational learning: Linking values, knowledge, and behavior. Journal of the Academy of Marketing Science, 25(4): 305–318
Slater S F, Narver J C (1995). Market orientation and the learning organization. Journal of Marketing, (59): 63–74
Slater S F (1997). Developing a customer value-based theory of the firm. Journal of the Academy of Marketing Science, (25): 162–167
Stata R (1989). Learning orientation—the key to management innovation. Sloan Management Review, (Spring): 63–74
Steers R M (1975). Problems in the measurement of organizational effectiveness. Administrative Science Quarterly, 20(4): 546–558
Subramaian A, Nilakanta S (1996). Organization innovativess: Exploring the relationship between organization determinants of innovation, types of innovations, and measures of organizational performance. Omega, International Journal of Management Science, 24(6): 631–647
Trist E L (1981). The Evolution of Socio-Techniocal Systems as a Conceptual Framwork and as an Action Research Program. In: Van de Ven A H, Joyce W F, eds. Perspectives on Organization Design and Behavior. New York: John Wiley & Sons
Tse Alan C B, Sin Leo Y M, Yau H M Oliver, Lee S Y Jenny, Chow R (2003). Market orientation and business performance in a Chinese business environment. Journal of Business Research, 56(3): 227–239
Wolfe R A (1994). Organizational innovation: review, critique and suggested research directions. Journal of Management Studies, 31(3): 405–430
Wu Sihua (2002). Nine Points for Strategy. The Press of Fudan University (in Chinese)
Zahra S A, de Belardino S, Boxx W R (1988). Organizational innovation: Its correlates and its implications for financial performance. International Journal of Management, (5): 133–142
Zaltman G, Duncan R, Holbek J (1973). Innovations and Organizations. New York: Wiley
Author information
Authors and Affiliations
Corresponding author
Additional information
Translated from Guanli Shijie 管理世界 (Management World), 2006, (2): 80–94, 143
Rights and permissions
About this article
Cite this article
Xie, H., Liu, C. & Chen, C. Relationships among market orientation, learning orientation, organizational innovation and organizational performance: An empirical study in the Pearl River Delta region of China. Front. Bus. Res. China 1, 222–253 (2007). https://doi.org/10.1007/s11782-007-0014-z
Issue Date:
DOI: https://doi.org/10.1007/s11782-007-0014-z