Techno-resonance innovation capability for enhancing marketing performance: a perspective of RA-theory
DOI: https://doi.org/10.3846/btp.2020.12117Abstract
The current study is conducted to fill up the research gap on the inconsistent findings of the ability of market orientation in enhancing marketing performance through inserting the techno-resonance innovation capability and product innovativeness as factors to leverage marketing performance. Five hypotheses were developed and tested in a sample frame of 121 SMEs in the region of West Borneo, Indonesia. The findings of this study demonstrate the pivotal role of techno-resonance innovation capability in two folds. Firstly, a techno-resonance innovation capability is proved as a mediator of marketing orientation in enhancing marketing performance. Secondly, the techno-resonance innovation capability, which holds the potential for enhancing the product innovativeness, is essential but not sufficient to enhance marketing performance; still, another extra effort is necessary, such as resonating the value of innovativeness to the target market.
Keywords:
market orientation, techno-resonance innovation capability, product innovativeness, market performance, IndonesiaHow to Cite
Share
License
Copyright (c) 2020 The Author(s). Published by Vilnius Gediminas Technical University.
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Adam, D., Tropp, D., Barham, J., Muldoon, M. F., Kiraly, S., & Cantrell, P. (2014). Food value chainsl creating shared value to enhance marketing success. U.S. Dept. of Agriculture, Agricultural Marketing Service.
Akgün, A. E., Keskin, H., Byrne, J. C., & Aren, S. (2007). Emotional and learning capability and their impact on product innovativeness and firm performance. Technovation, 27(9), 501–513. https://doi.org/10.1016/j.technovation.2007.03.001
Ande, R. A., Gunasekaran, A., Murugesan, P., & Natarajan, T. (2017). Brand resonance score for CBBE model: an application in financial services. Benchmarking: An International Journal, 24(6), 1490–1507. https://doi.org/10.1108/BIJ-07-2015-0073
Arbuckle, J. L. (2016). IBM® SPSS® Amos™ User’s Guide.
Asia Pacific Foundation of Canada, A. (2018). 2018 survey of entrepreneurs and MSMEs in Indonesia – building the capacity of MSMEs through human capital.
Avlonitis, G. J., & Gounaris, S. P. (1997). Marketing orientation and company performance: industrial vs. consumer goods companies. Industrial Marketing Management, 26(5), 385–402. https://doi.org/10.1016/S0019-8501(96)00121-6
Avlonitis, G. J., & Salavou, H. E. (2007). Entrepreneurial orientation of SMEs, product innovativeness, and performance. Journal of Business Research, 60(5), 566–575. https://doi.org/10.1016/j.jbusres.2007.01.001
Baker, W. E., & Sinkula, J. M. (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses. Journal of Small Business Management, 47(4), 443–464. https://doi.org/10.1111/j.1540-627X.2009.00278.x
Baron, R., & Kenny, D. (1986). The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
Bowman, C., & Ambrosini, V. (2000). Value creation versus value capture: Towards a coherent definition of value in strategy. British Journal of Management, 11(1), 1–15. https://doi.org/10.1111/1467-8551.00147
Braunbrück, A., & Ravasoo, A. (2006). Wave interaction resonance in weakly inhomogeneous nonlinear elastic material. Wave Motion, 43(3), 277–285. https://doi.org/10.1016/j.wavemoti.2005.11.001
Cacciolatti, L., & Lee, S. H. (2016). Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power. Journal of Business Research, 69(12), 5597–5610. https://doi.org/10.1016/j.jbusres.2016.03.067
Calantone, R. J., Chan, K., & Cui, A. S. (2006). Decomposing product innovativeness and its effects on new product success. Journal of Product Innovation Management, 23(5), 408–421. https://doi.org/10.1111/j.1540-5885.2006.00213.x
Cheng, C. C., & Huizingh, E. K. (2014). When is open innovation beneficial? The role of strategic orientation. Journal of Product Innovation Management, 31(6), 1235–1253. https://doi.org/10.1111/jpim.12148
Chowdhury, T. G., Desai, K. K., & Bolton, L. (2014). Accentuate the positive: how identity affects customer satisfaction. Journal of Consumer Marketing, 31(5), 10. https://doi.org/10.1108/JCM-03-2014-0915
Chung, H. F. L. (2019). How guanxi networking matters in the relation between market orientation and innovation in Asian emerging economies – the case of Markor. Journal of Business & Industrial Marketing, 34(4), 836–849. https://doi.org/10.1108/JBIM-05-2017-0115
De Guimarães, J. C. F., Severo, E. A., Campos, D. F., El-Aouar, W. A., & Azevedo, F. L. B. d. (2019). Strategic drivers for product and process innovation. Benchmarking: An International Journal, 27(3). https://doi.org/10.1108/BIJ-12-2018-0403
de Guimarães, J. C. F., Severo, E. A., & de Vasconcelos, C. R. M. (2018). The influence of entrepreneurial, market, knowledge management orientations on cleaner production and the sustainable competitive advantage. Journal of Cleaner Production, 174, 1653–1663. https://doi.org/10.1016/j.jclepro.2017.11.074
Ejdys, J. (2015). Market orientation vs. inovativeness of SMEs of Podlaskie province. Verslas: teorija ir praktika, 16(4), 353–361. https://doi.org/10.3846/btp.2015.563
Etkin, J. (2016). Choosing variety for joint consumption. Journal of Marketing Research, 53(6), 1019–1033. https://doi.org/10.1509/jmr.14.0209
Fang, E. (2008). Customer participation and the trade-off between new product innovativeness and speed to market. Journal of Marketing, 72(4), 90–104. https://doi.org/10.1509/jmkg.72.4.090
Fernandes, C. I. M. A. S., Ferreira, J. J. M., Lobo, C. A., & Raposo, M. (2020). The impact of market orientation on the internationalisation of SMEs. Review of International Business and Strategy (ahead-of-print). https://doi.org/10.1108/RIBS-09-2019-0120
Foroudi, P., Jin, Z., Gupta, S., Melewar, T. C., & Foroudi, M. M. (2016). Influence of innovation capability and customer experience on reputation and loyalty. Journal of Business Research, 69(11), 4882–4889. https://doi.org/10.1016/j.jbusres.2016.04.047
Fu, F. Q., & Elliott, M. T. (2013). The moderating effect of perceived product innovativeness and product knowledge on new product adoption: an integrated model. Journal of Marketing Theory and Practice, 21(3), 257–272. https://doi.org/10.2753/MTP1069-6679210302
Gao, G. Y., Zhou, K. Z., & Yim, C. K. B. (2007). On what should firms focus in transitional economies? A study of the contingent value of strategic orientations in China. International Journal of Research in Marketing, 24(1), 3–15. https://doi.org/10.1016/j.ijresmar.2006.09.004
Garcia, R., & Calantone, R. (2002). A critical look at technological innovation typology and innovativeness terminology: a literature review. Journal of Product Innovation Management, 19(2), 110–132. https://doi.org/10.1111/1540-5885.1920110
Groening, C., Sarkis, J., & Zhu, Q. (2018). Green marketing consumer-level theory review: A compendium of applied theories and further research directions. Journal of Cleaner Production, 172, 1848–1866. https://doi.org/10.1016/j.jclepro.2017.12.002
Guglielmetti Mugion, R., Aal, K., Renzi, M. F., Di Pietro, L., & Edvardsson, B. (2016). Innovation in service ecosystems: An empirical study of the integration of values, brands, service systems and experience rooms. Journal of Service Management, 27(4), 619–651. https://doi.org/10.1108/JOSM-02-2015-0044
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson Prentice Hall.
Handayani, R., Wahyudi, S., & Suharnomo, S. (2017). The effects of corporate social responsibility on manufacturing industry performance: the mediating role of social collaboration and green innovation. Business: Theory and Practice, 18(1), 152–159. https://doi.org/10.3846/btp.2017.016
Huhtala, J.-P., Sihvonen, A., Frösén, J., Jaakkola, M., & Tikkanen, H. (2014). Market orientation, innovation capability and business performance: Insights from the global financial crisis. Baltic Journal of Management, 9(2), 134–152. https://doi.org/10.1108/BJM-03-2013-0044
Hunt, S. D. (1997). Competing through relationships: Grounding relationship marketing in resource-advantage theory. Journal of Marketing Management, 13(5), 431–445. https://doi.org/10.1080/0267257X.1997.9964484
Hunt, S. D. (2001). Commentary – A General Theory of Competition: issues, answers and an invitation. European Journal of Marketing, 35(5/6), 524–548. https://doi.org/10.1108/03090560110388097
Hunt, S. D. (2013). A general theory of business marketing: R-A theory, Alderson, the ISBM framework, and the IMP theoretical structure. Industrial Marketing Management, 42(3), 283–293. https://doi.org/10.1016/j.indmarman.2013.02.002
Hunt, S. D., & Morgan, R. M. (1997). Resource-advantage theory: A snake swallowing its tail or a general theory of competition? Journal of Marketing, 61(4), 74–82. https://doi.org/10.1177/002224299706100406
Ilg, P. (2019). How to foster green product innovation in an in-ert sector. Journal of Innovation & Knowledge, 4(2), 129–138. https://doi.org/10.1016/j.jik.2017.12.009
Islam, S. (2018). Understanding health consumer value: service marketing perspective. South Asian Journal of Business Studies, 7(1), 2–21. https://doi.org/10.1108/SAJBS-04-2017-0051
Jaeger, S. R., Cardello, A. V., Jin, D., Hunter, D. C., Roigard, C. M., & Hedderley, D. I. (2017). Product uniqueness: Further exploration and application of a consumer-based methodology. Food Quality and Preference, 60, 59–71. https://doi.org/10.1016/j.foodqual.2017.03.013
Jaworski, B. J., & Kohli, A. K. (1993). Market orientation antecedents and consequences. Journal of Marketing, 57(3), 53. https://doi.org/10.1177/002224299305700304
Jung Jung, H., Yang, H., Lee, Y., & Kim, H. (2014). Impacts of country images on luxury fashion brand: facilitating with the brand resonance model. Journal of Fashion Marketing and Management: An International Journal, 18(2), 187–205. https://doi.org/10.1108/JFMM-10-2013-0113
Kaliappen, N., & Hilman, H. (2017). Competitive strategies, market orientation types and innovation strategies: finding the strategic fit. World Journal of Entrepreneurship, Management and Sustainable Development, 13(3), 257–261. https://doi.org/10.1108/WJEMSD-11-2016-0048
Kantabutra, S., & Avery, G. C. (2010). The power of vision: statements that resonate. Journal of Business Strategy, 31(1), 37–45. https://doi.org/10.1108/02756661011012769
Kocak, A., Carsrud, A., & Oflazoglu, S. (2017). Market, entrepreneurial, and technology orientations: impact on innovation and firm performance. Management Decision, 55(2), 248–270. https://doi.org/10.1108/MD-04-2015-0146
Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions and managerial Implications, Journal of Marketing, 54(2), 1. https://doi.org/10.2307/1251866
Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. The Journal of Marketing, 1–18. https://doi.org/10.1177/002224299005400201
Kohli, A. K., Jaworski, B. J., & Kumar, A. (1993). MARKOR: A measure of market orientation. JMR, Journal of Marketing Research, 30(4), 467. https://doi.org/10.1177/002224379303000406
Kopp, S. (2010). Social resonance and embodied coordination in face-to-face conversation with artificial interlocutors. Speech Communication, 52(6), 587–597. https://doi.org/10.1016/j.specom.2010.02.007
Kristina, H., & Tore, S. (2015). Customer-dominant logic: foundations and implications. Journal of Services Marketing, 29(6/7), 472–484. https://doi.org/10.1108/JSM-02-2015-0096
Kroehne, U., Funke, F., & Steyer, R. (2003). (Why) Should we use SEM? – Pros and cons of structural equation modelling. MPR-online, 8.
Langerak, F., Hultink, E. J., & Robben, H. S. (2004). The impact of market orientation, product advantage, and launch proficiency on new product performance and organizational performance. Journal of Product Innovation Management, 21(2), 79–94. https://doi.org/10.1111/j.0737-6782.2004.00059.x
Le, Y., Ye, F., Sheu, C., & Yang, Q. (2018). Linking green market orientation and performance: Antecedents and processes. Journal of Cleaner Production, 192, 924–931. https://doi.org/10.1016/j.jclepro.2018.05.052
Lee, Y.-K., Kim, S.-H., Seo, M.-K., & Hight, S. K. (2015). Market orientation and business performance: Evidence from franchising industry. International Journal of Hospitality Management, 44, 28–37. https://doi.org/10.1016/j.ijhm.2014.09.008
Lee, Y., & Colarelli O’Connor, G. (2003). The impact of communication strategy on launching new products: The moderating role of product innovativeness. Journal of Product Innovation Management, 20(1), 4–21. https://doi.org/10.1111/1540-5885.t01-1-201002
Li, H., & Atuahene-Gima, K. (2001). Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44(6), 1123–1134. https://doi.org/10.2307/3069392
Long, Z., Ali, K., John, E. S., & Alma, M.-W. (2017). Exploring market orientation among Chinese small and medium-sized enterprises. Chinese Management Studies, 11(4), 617–636. https://doi.org/10.1108/CMS-08-2016-0158
Low, D. R., Chapman, R. L., & Sloan, T. R. (2007). Inter-relationships between innovation and market orientation in SMEs. Management Research News, 30(12), 878–891. https://doi.org/10.1108/01409170710833321
Mahrous, A. A., & Genedy, M. A. (2019). Connecting the dots. Journal of Entrepreneurship in Emerging Economies, 11(1), 2–21. https://doi.org/10.1108/JEEE-09-2016-0036
Mandhachitara, R., & Allapach, S. (2017). Small business performance in Thailand: key success factors. Journal of Research in Marketing and Entrepreneurship, 19(2), 161–181. https://doi.org/10.1108/JRME-06-2016-0018
McNally, R. C., Cavusgil, E., & Calantone, R. J. (2010). Product innovativeness dimensions and their relationships with product advantage, product financial performance, and project protocol. Journal of Product Innovation Management, 27(7), 991–1006. https://doi.org/10.1111/j.1540-5885.2010.00766.x
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. The Journal of Marketing, 54(4), 20–35. https://doi.org/10.1177/002224299005400403
Ngek Neneh, B. (2016). Market orientation and performance: the contingency role of external environment. Environmental Economics, 7(2), 130–137. https://doi.org/10.21511/ee.07(2).2016.14
O’Cass, A., & Sok, P. (2013). The role of intellectual resources, product innovation capability, reputational resources and marketing capability combinations in firm growth. International Small Business Journal, 32(8), 996–1018. https://doi.org/10.1177/0266242613480225
OECD. (2018). SME and Entrepreneurship Policy in Indonesia 2018.
Prifti, R., & Alimehmeti, G. (2017). Market orientation, innovation, and firm performance – an analysis of Albanian firms. Journal of Innovation and Entrepreneurship, 6(1), 1–19. https://doi.org/10.1186/s13731-017-0069-9
Ramkumar, B. (2016). The effect of trust, transaction utility, and product uniqueness on international online outshopping (IOO) intention and customer delight: the role of e-tailer’s country image (PhD). The University of North Carolina at Greensboro. https://doi.org/10.31274/itaa_proceedings-180814-1808
Sahibzada Jawad, S. U. R., Naushad, S., Yousaf, S., & Yousaf, Z. (2019). Exploring performance of software houses. World Journal of Entrepreneurship, Management and Sustainable Development, 16(1), 1–11. https://doi.org/10.1108/WJEMSD-05-2019-0033
Samson, D., Gloet, M., & Singh, P. (2017). Systematic innovation capability: evidence from case studies and a large survey. International Journal of Innovation Management, 21(07), 1750058. https://doi.org/10.1142/S136391961750058X
Setiawan, A. I., & Hanfan, A. (2017). Elaborating the role of network synergy capacity as a supplier’s alternative terminal for achieving marketing performance. International Journal of Business and Society, 18(2), 245–262. https://doi.org/10.33736/ijbs.481.2017
Shang, S. S. C., Wu, Y.-L., & Sie, Y.-J. (2017). Generating consumer resonance for purchase intention on social network sites. Computers in Human Behavior, 69, 18–28. https://doi.org/10.1016/j.chb.2016.12.014
Sharma, A., & Jasrotia, V. (2016). Managing customers brand experience for creating brand resonance in smartphones. International Journal on Customer Relations, 4(1), 12–23. https://doi.org/10.21863/ijcr/2016.4.1.014
Sok, P., & O’Cass, A. (2015). Examining the new product innovation – performance relationship: Optimizing the role of individual-level creativity and attention-to-detail. Industrial Marketing Management, 47, 156–165. https://doi.org/10.1016/j.indmarman.2015.02.040
Suarez, M., & Belk, R. (2017). Cultural resonance of global brands in Brazilian social movements. International Marketing Review, 34(4), 480–497. https://doi.org/10.1108/IMR-07-2014-0252
Sugiyarti, G., Ferdinand, A. T., & Nurchayati, T. (2018). Acculturative products uniqueness antecedence for successful marketing performance. DLSU Business & Economics Review, 28(1), 11.
Sullaida, Nurmala, & Ahyar, C. (2018). The development of an independent entrepreneurship model through creative economy for women in Lhokseumawe city. In Proceedings of MICoMS 2017 (pp. 87–92). https://doi.org/10.1108/978-1-78756-793-1-00041
Sun, J., Yao, M., Zhang, W., Chen, Y., & Liu, Y. (2016). Entrepreneurial environment, market-oriented strategy, and entrepreneurial performance: A study of Chinese automobile firms. Internet Research, 26(2), 546–562. https://doi.org/10.1108/IntR-05-2015-0138
Tabachnick, B. G., & Fidell, L. S. (2012). Using multivariate statistics (6th ed.). Pearson.
Watanabe, C., Kanno, G., & Tou, Y. (2012). Inside the learning dynamism inducing the resonance between innovation and high-demand consumption: A case of Japan’s high-functional mobile phones. Technological Forecasting and Social Change, 79(7), 1292–1311. https://doi.org/10.1016/j.techfore.2012.03.003
Yadav, S. K., Tripathi, V., & Goel, G. (2019). Modelling strategic orientation dimensions and performance of small and medium enterprises. Journal of Modelling in Management, 14(3), 754–772. https://doi.org/10.1108/JM2-08-2018-0116
Zhang, J., & Duan, Y. (2010). The impact of different types of market orientation on product innovation performance: evidence from Chinese manufacturers. Management Decision, 48(6), 849–867. https://doi.org/10.1108/00251741011053433
Zhou, K. Z., Yim, C. K., & Tse, D. K. (2005). The effects of strategic orientations on technology-and market-based break-through innovations. Journal of Marketing, 69(2), 42–60. https://doi.org/10.1509/jmkg.69.2.42.60756
View article in other formats
Published
Issue
Section
Copyright
Copyright (c) 2020 The Author(s). Published by Vilnius Gediminas Technical University.
License
This work is licensed under a Creative Commons Attribution 4.0 International License.