The impact of Strategic Orientations on the Performance of Khorasan Science and Technology Park`s Companies by Mediating Role of Organizational Innovation

Document Type : Original Article

Authors

Ferdowsi University of Mashhad

Abstract

Considering the role of small and medium enterprises (SMEs) in achieving economic and social goals and the introduction of knowledge-based economy, the performance of knowledge-based SMEs calls for more attention than ever. In these companies, innovation is essential for survival. Therefore, in this study the effect of three components of market orientation, entrepreneurial orientation and learning orientation on organizational innovation, and then organizational innovation impact on the performance of the companies based in Khorasan Science and Technology Park, in Khorasan province, Iran, is investigated. For this purpose, 90 out of 143 companies located in the park are selected. A questionnaire is used for data collection, and its validity and reliability is tested and approved by surveying management teachers and by Cronbach's alpha coefficient. The result of the analysis performed by SPSS and SMARTPLS software shows that entrepreneurial orientation positively influences the firms' performance and innovation, and therefore the firms' innovation has a complete mediatory role in the relationship between entrepreneurial orientation and the firms' performance. On the other hand, no direct relationship is found between market orientation and the firms' performance; however, the relationship between market orientation and the firms' innovation and between the firms' innovation and firms' performance are confirmed, meaning that the firms' innovation has a partial mediatory role in this relationship. The results confirm a relationship between learning orientation and performance, but it is revealed that in these firms learning orientation does not impact innovation. Thus the mediatory effect of innovation on the relationship between learning orientation and the firms' performance is found to be partial.

Keywords


Abaszadeh, H., Darvish, H., Alvani, S. M. & Salehi, J., 2011. The Model of Entrepreneurial Orientation Strategy in Banking Industry of Iran. Journal of Strategic Management Studies, Volume (7), pp.99-116.
Alegre, J. & Chiva, R., 2013. Linking Entrepreneurial Orientation and Firm Performance: The Role of Organizational Learning Capability and Innovation Performance. Journal of Small Business Management, 51(4), pp. 491–507.
Altuntas, semercioz & Eregezc, 2013. Linking strategic and market orientations to organizational performance: the role of innovation in private healthcare organizations. Social and Behavioral Sciences, 99(6), pp. 413 – 419.
Artz, K., Norman, PP., Hatfield, D. & Cardinal, L., 2010. A longitudinal study of the impact of r&d, patents, and product innovation on firm performance. Journal of Product Innovation Management, 27(5), pp. 725-740.
Augusto, M. & Coelho, F., 2009. Market orientation and new-to-the-world products: exploring the moderating effects of innovativeness, competitive strength, and en-vironmental forces.. Industrial Marketing Management, 38(1), pp. 94– 108.
Auh, S. & Menguc, B., 2007. Performance implication of the direct and moderating effects of centralization and formalization on customer orientation. Industrial Marketing Management, 36(8), pp. 1022-1034.
Awang, A., Ariffin Ahmad, Z., Said Asghar, A. & Anwar Subari, K., 2010. Entrepreneurial orientation among bumiputera small and medium agrobased enterprises (BSMAEs) in West Malaysia: Policy implication in Malaysia. International Journal of Business and Management, 5(6), pp. 130-143.
Baker, W. E. & Sinkula, J. M., 1999. The synergetic effect of market orientation and learning orientation on organizational performance. Journal of the Academy of Marketing Science, 27(4), pp. 411−427.
Baker, W. E. & Sinkula, J. M., 2009. The Complementary Effects of Market Orientation and Entrepreneurial Orientation on Profitability in Small Business. Journal of Small Business Management, 47(4), pp. 443–464.
Bapuji, H. & Crossan, M., 2004. From questions to answers: reviewing organizationallearning research. Management Learning, 35(4), pp. 397- 417.
Barksdale, H. & Darden, W., 1971. Marketing attitudes toward the marketing concept. Journal of Marketing, 35(4), pp. 29-36.
Bing, L. & Zhengping, F., 2011. Relationship between Strategic Orientation and Organizational Performance in Born Global: A Critical Review. International Journal of Business and Management, 6(3), pp. 109-115.
Chen, Y.-S., Ming-Ji , J. L. & Chang, C.-H., 2009. The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets. Industrial Marketing Management, Volume 38, pp. 152–158.
Covin, J. & Slevin, D., 1991. A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice, 16(1), pp. 7-25.
Cuu Long, H., 2013. The Relationship among Learning Orientation, Market OrientatioEntrepreneurial Orientation, and Firm Performance of Vietnam Marketing Communications Firms. Philippine Management Review, Volume 20, pp. 37‐46.
Davis, J. L., Greg Bell, R., Tyge Payne, G. & Kreiser, PP. M., 2010. Entrepreneurial orientation and firm performance: the moderating role of managerial power. American Journal of Business, 25(2), pp. 41-54.
Deshpande, R., Farley, J. U. & Webster, F. E., 1993. Corporate culture customer orientation, and innovativeness in Japanese firms: A quadrat analysis. Journal of Marketing, 57(1), pp. 23–37.
Dess, G. & Robinson, R. J., 1984. Measuring organizational performance in the absence of objective measures. Strategic Management Journal, 5(265-273).
Gokus, o., 2008. Configuration of market oriented culture, organization structure and business strategy types and their performance implication in service organization,  Old Dominion University.
Greenley, G., 2000. Market orientation on business profitability : a balance replication. journal of business research, 48(1), pp. 69-73.
Gunday, G., Ulusoy, G., Kilic, K. & Alpkan, L., 2011. Effects of innovation types on firm performance. International Journal of Production economics, 133(2), pp. 662-676.
Imanipour, N. & Zivdar, M., 2008. Studying the Relationship Between Corporate Entrepreneurship Orientation and Performance Iran Insurance Company Agencies in Tehran). Journal of Entrepreneurship Development, 1(2), pp. 11-34.
Han, J. K., Kim, N. & Srivastava, R. K., 1998. Market orientation and organizational performance: Is innovation a missing link?. Journal of Marketing, 62(4), pp. 30-45.
Hine, D. & Ryan, N., 1999. Small service firms — Creating value through innovation. Managing Service Quality, 9(6), pp. 411−422.
Hughes, M. & Morgan, R., 2007. Deconstructing the Relationship between Entrepreneurial Orientation and Business Performance at the Embryonic Stage of Firm Growth. Industrial Marketing Management , 36(5), pp. 651-661.
Houman, H. As., 2008. Structural Simulation Modeling Using Laser Software .Tehran: Samt.
Hunt, S. & Morgan, R., 1995. The comparative advantage Theory of Capitalism. Journal of Marketing, Volume 59, pp. 1-15.
Hurley, R. F. & Hult, T., 1998. Innovation, market orientation, and organizational learning: An integration and empirical examination. Journal of Marketing, 62(3), pp. 42–54.
Jacob, M., Hellstrom, T., Adler, N. & Norrgren, F., 2000. From sponsorship to partnership in academy–industry relation. R&D Management, 30(3), pp. 255-262.
Jantunen, A., Nummela, N., Puumalainen, K. & Saarenketo, S., 2008. Strategic orientations of born globals - Do they really matter?.. Journal of World Business, 43(2), pp. 158-170.
Jimenez-Jimenez, D., Sanz - Valle, R. & Hernandez-Espallardo, M., 2008. Fostering Innovation: The role of market orientation and organizationallearning.European Journal of Innovation Management 11(3): 389-412.. European Journal of Innovation Management, 11(3), pp. 389-412.
Johne, A., 1999. Successful market innovation. European Journal of Innovation Management, 2(1), pp. 6−11.
Kandemir, D. & Hult, G. T. M., 2005. A Conceptualization of an Organizational Learning Culture in International Joint Ventures. Industrial Marketing Management, 34(5), pp. 430-439.
Keh, H. T. N. T. T. M. &. N. H. PP., 2007. The effects of entrepreneurial orientation and marketing information on the performance of SMEs. Journal of Business Venturing, 22(4), pp. 592‐611.
Keskin, 2006. Market orientation, learning orientation, and innovation capabilities in SMEs, An extended model. European Journal of Innovation Management, 9(4), pp. 396-417.
Khalili, S., Nejad, h. & Fazel, A., 2013. The influence of entrepreneurial orientation on innovative performance Study of a petrochemical company in Iran. Journal of Knowledge-based Innovation in China, 5(3), pp. 262-278.
Kohli, A. & Jaworski, B., 1990. Market orientation: The Construct, Research Propositions, and Managerial Application. Journal of Marketing, Volume 54, pp. 1-18.
Kohli, A., Jaworski, B. & Kumar, A., 1993. MARKOR: A Measure of Market orientation. Journal of Marketing Research, Volume 30, pp. 467-477.
Langerak, F., 2003. An appraisal of research on the predictive power of market orientation. European Management Journal, 21(4).
Lin, C., Peng, C. & Kao, D., 2008. The innovativeness effect of market orientation and learning orientation on business performance. International Journal of Manpower, 29(8), pp. 752-772.
Li, Y. H., Huang, J. & Tsai, M. T., 2009. Entrepreneurial orientation and firm performance: The role of knowledge creation process. Industrial Marketing Management, 38(4), pp. 440–449.
Lucas, B. & Ferrell, O., 2000. The effects of market orientation on product innovation. Journal of the Academy of Marketing Science, 28(2), pp. 239-47.
Lumpkin, G. & Dess, G., 1996. Enriching the Entrepreneurial Orientation Construct. The Academy of Management Review, Volume 21, pp. 605-606.
Matsuno, K. & Mentzer, J. T., 2000. The Effects of Strategy Type on the Market Orientacion–performance Relationshipp. Journal of Marketing, 64(4), pp. 1 –16.
Mavondo, F. C. J. & Stewart, J., 2005. Learning orientation and market orientation: relationship with innovation, human resource practices and performance. European Journal of Marketing, 39(11/12), pp. 1235–1263.
Maharati, Y. & Tabatabaei, H., 2012. Investigating and analyzing the impact of market orientation from the cultural and behavioral point of view on the performance of government banks. Journal of Business Management, 5(10), pp. 25-45.
Molahosseini, As. & Fathi, F., 2009. Variables Effective on the Innovation Model in Small and Medium Enterprises (SME’s) of Kerman-Iran. The Journal of Planning and Budgeting, 14(1), pp.59-74.
Motamani, As., Hossein Abadi, M. & Hemati, A., 2012. Evaluation of the Success Rate of Tenants in Science and  Technology Parks and Icubators. journal of science and technology parks & incubators, 8(32), pp. 32-40.
Mirghorbani Ganji, S. M., 2013. Technology transfer is an effective solution for the development of small and medium industries. Intelligent Industry Management Monthly, Volume(4), pp. 19-23.
Naldi, L., Nordqvist, M., Sjoberg, K. & Wiklund, J., 2007. Entrepreneurial orientation, risk taking, and performance in family firms. Family businesss review, 20(1), pp. 997-1017.
Narver, J. C., Slater, S. F. & MacLachlan, D. L., 2004. Responsive and proactive market orientation and new-product success. Journal of Product Innovation Management, 21(5), pp. 334-347.
Narver, J. C., Slater, S. F. & Tietje, B., 1998. Creating a Market Orientation. Journal of Market Focused Management, Volume 2, pp. 225-241.
Narver, J. & Slater, S., 1990. The Effect of a Market Orientation on Business Profitability. Journal of Marketing , 54(4), pp. 20-35.
Özsahin, M., Zehir, C. & Acar, A., 2011. Linking leadership style to firm performance: the mediating effect of the learning orientation. Procedia Social and Behavioral Sciences, Volume 24, pp. 1546–1559.
Parkman, I. D., Holloway, S. S. & Sebastiao, H., 2012. Creative industries: aligning entrepreneurial orientation and innovation capacity. Journal of Research in Marketing and Entrepreneurship, 14(1), pp. 95-114.
Rahab, 2012. Innovativeness Model of Small and Medium Enterprises Based On Market Orientation and Learning Orientation: Testing Moderating Effect of Business Operation Mode. Procedia Economics and Finance, Volume 4, pp. 97 – 109.
Raju, PP. S., Lonial, S. C. & Crum, M. D., 2011. Market orientation in the context of SMEs: A conceptual framework. Journal of Business Research, pp. Article in Press.
Rauch, A., Wiklund, J., Lumpkin, G. & Frese, M., 2009. Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), pp. 761–787.
Rhee, J., Park, T. & Lee, D., 2010. Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation. Journal of Technovation, 30(1), pp. 65–75.
Rodoula, H. & Tsiotdou, T., 2010. Delineating the effect of market orientation on services performance: a component-wise approach. Service Industries Journal, 30(3), pp. 375- 403.
Sandvik, I. L. & Sandvik, K., 2003. The impact of market orientation on product innovativeness and business performance. International Journal of Research in Marketing, 20(4), pp. 355−376.
Slater, S. & Narver, J., 1994. Does Competitive Environment Moderate the Market Orientation Performance Relationship?. Journal of Marketing, 58(1), pp. 46-55.
Suliyanto & Rahab , 2012. The Role of Market Orientation and Learning Orientation in Improving Innovativeness and Performance of Small and Medium Enterprises. Asian Social Science Journal, 8(1), pp. 134-145.
Suliyanto & Rahab, 2012. The Role of Market Orientation and Learning Orientation in Improving Innovativeness and Performance of Small and Medium Enterprises. Asian Social Science Journal, 8(1), pp. 134-145.
Theodosiou, M., Kehagias, J. & Evangelia , K., 2012. Strategic orientations, marketing capabilities and firm performance: An empirical. Industrial Marketing Management, pp. 1-13.
Tsiotsou, R., 2010. Delineating the effect of market orientation on services performance: a component-wise approach. The Service Industries Journal, 30(3), pp. 375- 403.
Tushman, M. & Nadler, D., 1986. Organizing for innovation. California Management Review, 28(3), pp. 74-92.
Venkatraman, N. & Ramanujam, V., 1986. Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11(4), pp. 801-814.
Wiklund, J. & Shepherd, D., 2005. Entrepreneurial orientation and small business performance: A configurational approach. Journal of Business Venturing, 20(1), pp. 71–79.
Wright, PP., Kroll, M., Pray, B. & Lado, A., 1995. Strategic orientations, competitive advantage and business performance. Journal of Business Research, 33(2), pp. 143-51.
Zahra, S. & Covin, J., 1995. Contextual influences on the corporate entrepreneurship performance relationship: A longitudinal analysis. Journal of Business Venturing, 10(1), pp. 43-58.
Zhou, K. Z., Yim, C. K. & Tse, D. K., 2005. The effects of strategic orientations on technology and market based breakthrough innovations. Journal of Marketing, 69(2), pp. 42–60.