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Innovation orientation and long-term performance: The mediating role of market perception capability

Author

Listed:
  • Antonia Mohedano-Suanes

    (Universidad de Valencia)

  • María-Ángeles Revilla-Camacho

    (Universidad de Sevilla)

  • Dolores Garzón

    (Universidad de Valencia)

Abstract

This paper examines the relationship between the orientation towards innovation of SMEs and long-term performance, considering market perception capability as a mediating variable. This research topic is important because it can provide a better understanding of the relationship between innovation orientation and performance, since most of the previous papers that have analyzed this relationship have done so from a short-term perspective. But the effect of innovation orientation on performance may not be immediate and short-term, but long-term, and may be influenced by the company’s ability to develop marketing capabilities. A sample of 77 independent hotels is taken for empirical contrast and a system of structural equations is modelled using the Partial Least Squares (PLS) technique. The results show that the company’s capacity to understand the market in which it operates functions as a mechanism that intervenes in the relationship between innovation orientation and long-term result, with a mediating effect that explains the positive effect of innovation orientation on the long-term results.

Suggested Citation

  • Antonia Mohedano-Suanes & María-Ángeles Revilla-Camacho & Dolores Garzón, 2021. "Innovation orientation and long-term performance: The mediating role of market perception capability," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 741-757, June.
    • Handle: RePEc:spr:intemj:v:17:y:2021:i:2:d:10.1007_s11365-020-00736-0
    DOI: 10.1007/s11365-020-00736-0
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    3. Youjia Li & Yi Li & Shunli Qiu, 2023. "Analysis on the Effectiveness and Mechanisms of Public Policies to Promote Innovation of High-Tech Startups in Makerspaces," Sustainability, MDPI, vol. 15(9), pages 1-22, April.

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