The mediating role of organizational modernity and the moderator role of market dynamics on the relationship between market sensibility and firm performance

Document Type : Original Article

Authors

1 Assistant Professor, Department of Business Management, Faculty of Management, Economics and Accounting, Payame Noor University, Tehran, Iran

2 Master of Business Administration, Faculty of Economics and Management, Urmia University, Iran.

3 Department of Management, Economics and Accounting, Payame Noor University, Tehran, Iran.

Abstract

Given the rapid growth of markets and the diverse demands of consumers, traditional marketing systems cannot effectively identify consumer needs, so companies must use modern market sensing systems. This article reviews the existing literature on organizational innovativeness and modern marketing and then proposes a framework that links Market-Sensing Capability, organizational innovativeness, and firm performance. Using dynamic capability theory, it provides a framework that creates innovation as a mediator in the relationship between Market-Sensing Capability and firm performance, and the moderating role of environmental factor (market dynamics) on the relationship between organizational innovation and performance. The study population was the employees of Iran-Khodro dealerships in Tehran. Based on sampling in G*Power software, the sample estimate was 130 people, but to eliminate the effect of incomplete questionnaires, 200 samples were distributed, of which 173 healthy questionnaires were analyzed. The collected data from healthy questionnaires taken from previous studies were analyzed with warp-pls v7 software. The results showed that Market-Sensing Capability has a positive and significant effect on performance and organizational innovativeness. The mediating role of organizational innovativeness on the relationship between Market-Sensing Capability and performance was also acknowledged. Finally, the moderating role of market dynamics was assessed as positive and significant.

Keywords

References

  1. Alhamadi MS. The Influence of Dynamic Capabilities on Organisational Performance: An Empirical Study on Qatar’s Ministry of Finance. Global Journal of Management And Business Research. 2020.
  2. Furnival J, Boaden R, Walshe K. A dynamic capabilities view of improvement capability. Journal of Health Organization and Management. 2019;33(7/8):821-34.
  3. Čirjevskis A. The role of dynamic capabilities as drivers of business model innovation in mergers and acquisitions of technology-advanced firms. Journal of Open Innovation: Technology, Market, and Complexity. 2019;5(1):12.
  4. Likoum SWB, Shamout MD, Harazneh I, Abubakar AM. Market-sensing capability, innovativeness, brand management systems, market dynamism, competitive intensity, and performance: an integrative review. Journal of the Knowledge Economy. 2020;11(2):593-613.
  5. Todorov K. The Strategic Engine Model: Redefined Strategy Structure, as per Market-and Resource-Based Theory Application, Tested in the Automotive Industry. International Journal of Economics and Management Engineering. 2020;14(3):206-11.
  6. Ardyan E. Market sensing capability and SMEs performance: The mediating role of product innovativeness success. DLSU Business & Economics Review. 2016;25(2):79-97.
  7. Li D-y, Liu J. Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research. 2014;67(1):2793-9.
  8. Mikalef P, Pateli A, van de Wetering R. IT architecture flexibility and IT governance decentralisation as drivers of IT-enabled dynamic capabilities and competitive performance: The moderating effect of the external environment. European Journal of Information Systems. 2020:1-29.
  9. Alshanty AM, Emeagwali OL. Market-sensing capability, knowledge creation and innovation: The moderating role of entrepreneurial-orientation. Journal of Innovation & Knowledge. 2019;4(3):171-8.
  10. Fang S-R, Chang E, Ou C-C, Chou C-H. Internal market orientation, market capabilities and learning orientation. European journal of marketing. 2014;48(1).
  11. Amangala EA, Wali AF. Market Orientation, Service Quality Perception, and Customer Satisfaction: The Role of Market-sensing Capabilities. Business Perspectives and Research. 2020:2278533719887453.
  12. Ogbonna BU. Linking SMEs profitability to brand orientation and market-sensing capability: A service sector evidence. Periodica Polytechnica Social and Management Sciences. 2016;24(1):34-40.
  13. Murray N, Lynch P, Foley A. Unlocking the magic in successful tourism destination marketing: the role of sensing capability. Journal of marketing management. 2016;32(9-10):877-99.
  14. Parida V, Pesämaa O, Wincent J, Westerberg M. Network capability, innovativeness, and performance: a multidimensional extension for entrepreneurship. Entrepreneurship & Regional Development. 2017;29(1-2):94-115.
  15. مولایی، اصغر. شیرازی، بابک. سلطان زاده، جواد. (1395). ارائه مدل نـوآوری مبتنـی بـر مشـتری بـا تمرکز بر روی مراحل اولیه فرآیند نـوآوری محصول؛ در پارادایم نوآوری باز. فصلنامه توسعه تکنولوژی صنعتی، شماره 28.
  16. Lin C-H, Sanders K, Sun J-M, Shipton H, Mooi EA. HRM and innovation: the mediating role of market-sensing capability and the moderating role of national power distance. The International Journal of Human Resource Management. 2018:1-26.
  17. Ngo LV, Bucic T, Sinha A, Lu VN. Effective sense-and-respond strategies: Mediating roles of exploratory and exploitative innovation. Journal of Business Research. 2019;94:154-61.
  18. Zhang J, Wu W-p. Social capital and new product development outcomes: The mediating role of sensing capability in Chinese high-tech firms. Journal of World Business. 2013;48(4):539-48.
  19. Zawawi NFM, Wahab SA, Al-Mamun A, Yaacob AS, Kumar N, Fazal SA. Defining the concept of innovation and firm innovativeness: a critical analysis from resource-based view perspective. International Journal of Business and Management. 2016;11(6):87-94.
  20. Ritala P, Vanhala M, Järveläinen K. The Role Of Employee Incentives And Motivation On Organisational Innovativeness In Different Organisational Cultures. International Journal of Innovation Management. 2020;24(04):2050075.
  21. Speldekamp D, Knoben J, Saka-Helmhout A. Clusters and firm-level innovation: A configurational analysis of agglomeration, network and institutional advantages in European aerospace. Research Policy. 103921: (3)49; 2020.
  22. Durst S, Mention A-L, Poutanen P. Service innovation and its impact: What do we know about? Investigaciones europeas de dirección y economía de la empresa. 2015;21(2):65-72.
  23. Santos-Vijande ML, del Río-Lanza AB, Suárez-Álvarez L, Díaz-Martín AM. The brand management system and service firm competitiveness. Journal of Business Research. 2013;66(2):148-57.
  24. Chen Q, Wang C-H, Huang S-Z. Effects of organizational innovation and technological innovation capabilities on firm performance: evidence from firms in China’s Pearl River Delta. Asia Pacific Business Review. 2020;26(1):72-96.
  25. Kraiczy ND, Hack A, Kellermanns FW. The relationship between top management team innovation orientation and firm growth: the mediating role of firm innovativeness. International Journal of Innovation Management. 2015;19(01):1550005.
  26. García-Villaverde PM, Elche D, Martínez-Pérez Á. Understanding pioneering orientation in tourism clusters: Market dynamism and social capital. Tourism Management. 2.76:103966;020.
  27. Park H, Yoo J-Y, Moon S-H, Yoo H-S, Lee H-S, Kwon T-H, et al. Effect of Technology and Market Dynamism on the Business Performances of SMEs by Supporting Services. Science, Technology and Society. 2019;24(1):144-60.
  28. Wang CL, Senaratne C, Rafiq M. Success traps, dynamic capabilities and firm performance. British Journal of Management. 2015;26(1):26-44.
  29. Zhu X, Dong MC, Gu J, Dou W. How do informal ties drive open innovation? The contingency role of market dynamism. IEEE Transactions on Engineering Management. 2017;64(2):208-19.
  30. Ferreira J, Cardim S, Coelho A. Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability. Journal of the Knowledge Economy. 2020:1-25.
  31. Rasoolimanesh SM, Iranmanesh M, Amin M, Hussain K, Jaafar M, Ataeishad H. Are functional, emotional and social values interrelated? A study of traditional guesthouses in Iran. International Journal of Contemporary Hospitality Management. 2020;32(9).
  32. رسولی، نسرین. ترابی، محمدامین. رسولی، محی‌الدین. (1398). گام به گام با آموزش warppls . نشر پویندگان طلایی، چاپ اول.
Commercial Strategies
Volume 17, Issue 16
February 2021
Pages 14-1

Files

Share

How to cite

Statistics