A Case Study of the Mediating Role of Innovation on the Relationship Between Environmental Uncertainty, Market Orientation, and Firm Performance

Cevahir Uzkurt (), Halil Semih Kimzan and Cengiz Yılmaz ()
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Cevahir Uzkurt: Ministry of Science, Industry and Technology, Directorate General for Science and Technology, Turkey
Halil Semih Kimzan: Eskisehir Osmangazi University, Faculty of Economics and Administrative Sciences, Turkey
Cengiz Yılmaz: Middle East Technical University, Faculty of Economics and Administrative Sciences, Turkey

International Journal of Innovation and Technology Management (IJITM), 2016, vol. 13, issue 06, 1-21

Abstract: In recent years, environmental uncertainty and market orientation have been considered key elements of superior firm performance. Although environmental uncertainty and market orientation may affect firm performance, innovation also mediates these effects. In this study, a conceptual model was developed to test the mediating effect of innovation on the relationships between these constructs. Data for the study were collected from Turkey’s Top 500 Companies. Hierarchical regression and multiple regression analyses were employed to test the research hypotheses. The findings of the study revealed that the direct effects of environmental uncertainty and innovation on firm performance were statistically significant, although the effect of market orientation was not. The results obtained from the present study seem to indicate a possible “dual effect” of market orientation on firm performance. The results also indicated that innovation, especially product innovation, mediates the relationship between environmental uncertainty and firm performance. The findings indicate that innovation, especially product innovation, is critical for firm performance.

Keywords: Market orientation; environmental uncertainty; innovation; firm performance (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0219877017500031

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