Innovation orientation and long-term performance: The mediating role of market perception capability |
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Authors: | Mohedano-Suanes Antonia Revilla-Camacho María-Ángeles Garzón Dolores |
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Affiliation: | 1.Departamento de Dirección de Empresas. Juan José Renau Piqueras, Universidad de Valencia, Avda. Naranjos, s/n, 46022, Valencia, Spain ;2.Departamento de Administración de Empresas y Marketing, Universidad de Sevilla, Avda. Ramón y Cajal, 1, 41005, Sevilla, Spain ; |
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Abstract: | This paper examines the relationship between the orientation towards innovation of SMEs and long-term performance, considering market perception capability as a mediating variable. This research topic is important because it can provide a better understanding of the relationship between innovation orientation and performance, since most of the previous papers that have analyzed this relationship have done so from a short-term perspective. But the effect of innovation orientation on performance may not be immediate and short-term, but long-term, and may be influenced by the company’s ability to develop marketing capabilities. A sample of 77 independent hotels is taken for empirical contrast and a system of structural equations is modelled using the Partial Least Squares (PLS) technique. The results show that the company’s capacity to understand the market in which it operates functions as a mechanism that intervenes in the relationship between innovation orientation and long-term result, with a mediating effect that explains the positive effect of innovation orientation on the long-term results. |
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