Effect of Market Orientation on Innovative Performance

  • Mudasir Ismail
  • Naveed Ur Rehman


Market orientation (MO) starts with the research in markets, newly formed small businesses might find short-term success with a sales-oriented approach to marketing, but an innovative product-oriented strategy with the implementation of intellectual capital (IC) can increase the likelihood of long-term success. The purposes of this research paper envelope: (i) to find whether, MO impacts organizational IC; (ii) to find whether, IC impact innovative performance, and also (iii) to verify whether IC acts as a mediator between MO and innovative job performance. Target population of this study was Pakistan but considering the time and resource constraints the population was restricted to Lahore. Accordingly, by employing convenience sampling technique data was collected from various departments of manufacturing and service sector organizations.

This study has used Preacher and Hayes (2008) multiple mediation (indirect) analysis to test the mediating role of IC between the MO and innovative performance. The results of this study partially supported the proposed model of this essay, importantly it has been found that Human Capital fully mediate the relationship between market orientation and innovative performance. On the other hand, surprisingly the results of this study did not support the intervening role of structural capital between market orientation and innovative performance instead, it was revealed that market orientation impact innovative performance. So this study showed that human capital is off more importance than structural capital in creating high value products. However, before making any inference the academicians and practitioners should consider sampling method and size of this study.

How to Cite
ISMAIL, Mudasir; REHMAN, Naveed Ur. Effect of Market Orientation on Innovative Performance. Management and Administrative Sciences Review, [S.l.], v. 7, n. 1, p. 38-45, feb. 2018. ISSN 2308-1368. Available at: <http://absronline.org/journals/index.php/masr/article/view/744>. Date accessed: 19 feb. 2018.