The impact of a responsive and proactive market orientation on innovation and business performance

Abstract

The purpose of the presented empirical study was to examine the impact of a responsive and proactive market orientation on the degree of novelty, innovation performance and business performance. Data obtained from 325 Slovenian companies that introduced product, process, marketing and organisational innovations during the 2005-2007 period were analysed via structural equation modelling. The main findings reveal that only a proactive market orientation is positively related to the degree of novelty, whereas no support was found for the direct impact of both market orientations on innovation performance and business performance.