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An Integrative Model of Market Orientation on Innovation Performance

Objective - This paper seeks to provide new insights into the relationship between market orientation and innovation performance by empirically testing the direct effect of market orientation (MO) on innovation performance and exploring the effects of moderation in marketing constructs, namely customer relationship management (CRM) and knowledge management, in these relationships. Methodology/Technique - This study adopts a cross-sectional research design. Data is collected from export-oriented manufacturing small and medium enterprises (SMEs) in Indonesia. The data is analysed using PLS structural equation modeling. Findings - Our findings reveal that MO is a significant driver of innovation performance. The results further confirm that CRM plays a moderating role in the interrelation between market orientation and innovation performance. In addition, market orientation and knowledge management have a positive effect on innovation performance. Novelty – These results prove that the interaction of CRM and knowledge management with market orientation, each have a significant impact on innovation performance. Market orientation behavior more effectively achieves innovation performance in manufacturing SMEs if the MO is interactive with CRM and knowledge management. This research adds new insights to the existing literature and has implications for future research and marketing practices in Indonesia, giving implications for marketing managers and export researchers about managing market orientation, CRM development, and knowledge management. Type of Paper - Empirical