Ljiljana Božic and Ðurdana Ozretic-Došen
The relationship between market orientation and innovation has been the subject of numerous studies. While some find positive effects, the others argue negative effects of market…
Abstract
Purpose
The relationship between market orientation and innovation has been the subject of numerous studies. While some find positive effects, the others argue negative effects of market orientation (or its components). The majority of the critique regards mostly its potential to limit creativity and the technological breakthrough. Concerns over its benefits for commercialization of an innovation are less pronounced. The purpose of this paper is to address the implementation of market orientation in new product development activities and seek to find if they follow different patterns or whether the whole concept is applied equally in successful innovating firms.
Design/methodology/approach
The study relies on qualitative methodology. Findings are based on seven case studies. Cases are selected according to theoretical sampling. In order to collect the data the authors employ interviews.
Findings
The research findings support the assumption that the general principles of customer and competitor orientation are subject to different manifestations. However, no forms of interfunctional orientation have been identified.
Originality/value
The findings of the study can help us to understand how market oriented firms establish a suitable setting for creativity and innovation and enable innovation development.