An Empirical study on the relationships among organizational capabilities, market orientation, and organizational performance

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Title:	An Empirical study on the relationships among organizational capabilities, market orientation, and organizational performance
Authors:	Liao, Shu-hsien;Chang, Wen-Jung
Contributors:	淡江大學管理科學學系;淡江大學經營決策學系
Keywords:	market orientation;marketing capability;innovation capability;organizational performance;Drucker
Date:	2011-05
Issue Date:	2013-08-12 16:18:12 (UTC+8)
Publisher:	Tamsui, Taipei: Tamkang University, Department of Management Sciences and Decision Making
Abstract:	Many studies not only have strongly supported that market orientation (MO) is positively associated with organizational performance (OP), but also highlight the critical role of contextual factors strengthening their relationship. However, they rarely introduce organizational capabilities into MO-OP relationship with strategic management perspective. Accompanied with the popularization of life-long learning, university has become major source to provide appropriate courses to meet the individual's needs to know and has joined with the services becoming one of knowledge-intensive industry. Although Drucker has boldly declared that organizations have only two basic functions, marketing and innovation, few studies really take these two capabilities into account and explore their influence on MO-OP relationship. Thus, this study collects 358 samples from universities and the services in Taiwan and uses structural equation modelling (SEM) to empirically explore the relationship among MO, organizational capabilities and OP. The findings indicate that organization's capabilities will be aligned with MO while internal marketing capability (lMC) and external marketing capability (EMC) each will induce innovation capability (INC); IMC is supposed to be the solid basis of EMC; EMC may dominate IMC and INC to OP; IMC can indirectly influence internal OP (i.e., organizational commitment) by means of administrative innovation while INC has no significant impacts on OP. Besides, a moderation effect of industry is found in our measurement model. Finally, this paper concludes with some discussions and managerial implications.
Relation:	Proceedings of the 2011 International Conference in Management Sciences and Decision Making=2011年管理科學與經營決策國際學術研討會論文集, pp.425-432
Appears in Collections:	[Department of Management Sciences] Proceeding

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