The Mediating Effect of NPD-Activities and NPD-Performance on the Relationship between Market Orientation and Organizational Performance

Fred Langerak, Erik Jan Hultink and H.R.S. Robben

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: Empirical research has demonstrated that a market orientation has in general a positive effect on organizational performance. The potential benefits of a market orientation have, however, not been realized because academics and practitioners do not yet understand the modus operandi that transform market orientation into superior organizational performance. Recent research has demonstrated that the proficiency in new product development (NPD) activities might be the key in the conversion of market orientation into superior NPD-performance, and hence, organizational performance. This study is designed to test a set of hypotheses related to the interrelationships among market orientation, the proficiency in NPD-activities, NPD-performance, and organizational performance. The results from a sample of 126 manufacturing firms in the Netherlands present evidence for the mediating role of the proficiency in several NPD-activities and NPD-performance in the relationship between market orientation and organizational performance. The fact that this mediating role has been found thus provides a better understanding of how market-oriented behaviors are transformed into superior value for customers.

Keywords: innovation; market orientation; performance evaluation; statistical analysis; studies (search for similar items in EconPapers)
JEL-codes: C44 M (search for similar items in EconPapers)
Date: 2000-11-27
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Citations: View citations in EconPapers (1)

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