Antecedents and Consequences of Marketing and Innovation Competence: Does Orientation Matter?
This research provides a conceptual framework that encompasses a complex set of relationships among: (1) strategic orientation (including market orientation, technology orientation, and aesthetic orientation); (2) market knowledge competence versus innova
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ntation is more likely to lead to which capabilities, and which capabilities are more likely to enhance aesthetic versus technological innovations. Finally, while there are several studies about market orientation and/or market knowledge competence in a domestic U.S. context, studies in an international context are fewer. This is quite surprising because, due to economic differences, the effects of model constructs can vary significantly among countries. We test whether the hypotheses hold across two very different economies, i.e., the U.S. and China. For example, the results indicate that in freer economies, the relationships between market orientation and market knowledge competence are stronger. We begin by defining terms and specifying the theoretical background for the model. We then develop hypotheses, including hypotheses about differences in effect sizes. After discussing samples and measures, we present the results for both the U.S. and China. THEORETICAL BACKGROUND An examination of Figure 1 overall reveals that the theoretical model proposes antecedents and consequences of market knowledge competence and of innovation competence. As an example, consider that market knowledge competence (customer/competitor capabilities) is preceded by market orientation (customer/competitor orientations). Customer (or competitor) orientation was defined as the direction and focus of the firm on its target customers (or competitors) (Kumar et al. 2011; Narver and Slater 1990; Gatignon and Xuereb 1997). In other words, orientation may determine which information sources interest the firm: customers or competitors (or both). Market knowledge competence, on the other hand, involves transforming information into knowledge: i.e., it involves abilities to search for, collect, acquire, and/or generate information, but also to interpret, integrate, understand and learn about customers and competitors. It is a higher order competence and includes abilities and behavioral processes that are related with market orientation (Li and Calantone 1998; Li and Cavusgil 1999). Our study is thus based partly on the market orientation literature and extends it by empirically demonstrating the relationships from market orientation to market knowledge competence. However, as the above definition of market knowledge competence makes clear, understanding competence’s role also builds on organizational learning theory. Learning theory encompasses how and why learning takes place in organizations (Argyris and Schön 1978): learning underlies that the idea that market knowledge competence leads to superior outcomes ( Atuahene-Gima and Yinghong 2011; Slater and Narver 1995). In particular, learning facilitates innovation (Baker and Sinkula 2007; Brown and Duguid 1991; Zhou, Yim, and Tse 2005) through customer and competitor knowledge capabilities (Li and Calantone 1998; Li and Cavusgil 1999). Thus our study examines how customer (or competitor) orientation is transformed indirectly into innovations via customer (or competitor) knowledge capabilities: i.
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