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Do Market Orientation and Innovation Improve Organizational Performance?: An International and Comparative Review of the Effects
Abstract
The chapter goal is to test a theoretical model. This framework examines the associations among innovation, market orientation, management outcomes, and business performance. In terms of method, the authors used mega-analysis. Mega-analysis comprehends analysis of other meta-analyses. The data included 16 meta-analyses, which represent over 100,000 responses. The chapter produces four original values to literature. The first main conclusion is that it confirmed all hypotheses proposed. Hence, the theoretical model is empirically consistent. Second, the authors analyzed and compared the different effect-size that market orientation and innovation have over performance. They concluded that market orientation had a stronger effect over performance than innovation and business variables. Third, the authors found that innovation created significant variance on management outcomes. This result supports the notion that innovation has a key role in firm strategy. Fourth, firm investments on innovation and new product development affected firms’ performance and profits.
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