Proactive Market Orientation, Radical Service Innovation, and Performance: Moderating Effects of Size and Competitive Intensity

Ngatno

International Journal of Management Sciences, 2015, vol. 5, issue 1, 68-84

Abstract: This study provides new insights by examining effects of proactive market orientation on radical service innovation and performance. This study also evaluates how the moderating effect of competitive intensity and firm size on these relationships. The data collection was done using a survey. The sample of this study was manager or director of rural credit bank in Central Java, Indonesia. 128 questionnaires were distributed with 85.93% response rate. The data were analyzed using Generalized Structured Component Analysis (GSCA). The results reveal that: a) proactive customer orientation and proactive competitor orientation have a positive effect on radical service innovation. b) The moderating effect analysis shows that competitive intensity can strengthen only on the relationship between proactive customer orientations on radical service innovation, in the other hand the firm size can weaken only the relationship between proactive competitor orientation and radical service innovation. The findings offer insight for rural credit bank to increase proactive market orientation as radical service innovation determinant.

Keywords: proactive customer orientation; proactive competitor orientation; radical service innovation; competitive intensity; firm size; performance. (search for similar items in EconPapers)
Date: 2015
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