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Despite the stimulation provided by market demand and green issues on business performance, the exact nature of the relationships among these aspects remains an issue of contention. This study sought to bridge this gap in the research by examining the effects of market demand on firm performance using green innovation and environmental performance as mediators. The paper aims to discuss these issues.

The Taiwanese hybrid vehicle industry was targeted as the scope of research. Using random sampling method, survey questionnaires were distributed to retailers, wholesalers, and component sale firms in the industry through post and e-mails. AMOS 5.0 and the structural equation modeling (SEM) were used to test the hypotheses and the theoretical model.

Except for the impact of market demand on environmental performance, all relationships were found to be significant. The mediating effect of green innovation which was proven to be significant, while that of environmental performance remained insufficient.

This study has a number of limitations. The use of figures from a single industry partly restricts the generalizability of these findings.

These results suggest that firms should make greater efforts to understand customer needs and promote core competencies in the innovation of green products and processes to align green initiatives with consumer values in order to satisfy market demand and ensure sustainable performance.

This study has important implications for the hybrid vehicle industry in particular and all businesses in general. The results provide guidelines for the enhancement of business performance. Based on the significant impact of market demand on green innovation, this study strongly recommends that firms make greater efforts to understand customer needs and expectations.

This study was the first to establish a model for investigating the links among market demand, green innovation, environmental performance, and firm performance in the Taiwanese hybrid vehicle industry. The findings provide effective guidelines for the achievement of market leadership and sustainable performance.

Entrepreneurial orientation (EO) purportedly enhances a firm's competitive edge, but its alignment with specific dimensions of manufacturing flexibility has not been convincingly documented. The purpose of this study is to investigate the effects of several identifiable aspects of EO on particular types of manufacturing flexibility.

Using the data collected from 115 motherboard manufacturers, the study employs multiple regression analysis to examine the effects of entrepreneurial practices on manufacturing flexibility.

The statistical results lead to the following conclusions: autonomy, innovativeness, risk‐taking and proactiveness have significant positive effects on new product flexibility; autonomy, innovativeness, and competitive aggressiveness improve product mix flexibility; innovativeness, proactiveness, and competitive aggressiveness determine volume flexibility.

The research focuses exclusively on external manufacturing flexibility, ignoring, for the time being, internal manufacturing flexibility factors.

The outcomes of the present study reveal that manufacturing flexibility cannot be achieved by simply installing a computer‐aided system; rather, it needs to be planned, managed, and integrated with a firm's entrepreneurial endeavors.

This is the first empirical study to investigate the effects of EO on manufacturing flexibility rather than on business performance, which most of the previous research on this topic has emphasized. In terms of practical applicability, the findings provide plant managers with valuable guidelines for improving manufacturing flexibility by undertaking appropriate entrepreneurial action.

The purpose of this paper is to investigate the effects of various dimensions of customer relationship management (CRM) on innovation capabilities. Five dimensions of CRM (information sharing, customer involvement, long‐term partnership, joint problem‐solving, and technology‐based CRM) and five aspects of innovation capability (product, process, administrative, marketing, and service innovations) are identified. The one‐to‐one associations between the two constructs are developed and verified.

Data from 107 Taiwanese computer manufacturers are collected. Multiple regression analysis is employed to examine the effects of CRM on innovation capabilities.

The following results are offered: computer manufacturers in Taiwan perform various levels of CRM and, consequently, display different levels of effects on each of the five innovation capabilities. Generally, firms are able to increase their innovation capability by ad hoc CRM; the relationship between customer involvement and process innovation; customer involvement and administrative innovation; and long‐term partnership and marketing innovation are not significant; and technology‐based CRM has positive effects on all five types of innovation.

The findings suggest that not all CRM activities contribute to innovation programs, which clearly indicates the need for applying other mechanisms, such as supplier integration, to form a complete innovation program. Managers should align the development of their supplier management and CRM practices with the desired innovation capability.

The one‐to‐one relationships between CRM practices and innovation capabilities have not been properly examined. The findings suggest the need for more research in this area, and the statistical results provide managers with useful guidelines for implementing appropriate CRM practices to develop specific innovation capabilities to respond to enhanced competitiveness.