The effect of market orientation on innovation of Czech and German high-tech firms

Abstract

Aim of the article is to find out the causal relationship between dimensions of market orientation (MO) and innovation (INOV). Market orientation was studied as a four-dimensional construct and innovation as a one-dimensional. Market orientation in this study is understood as a process of getting information about customers and competitors, spreading and integrating these information within the company and reactions to these information in the form of a coordinated actions. The studied sample was represented by the Czech (N=164) and German (N=187) high-tech firms in manufacturing industries. Selection of firms was carried out in Albertina and Hoppenstedt database. Respondents in managerial ranks completed the questionnaire and marked their rate of approval with individual statements on a seven point Likert scale. The way to achieve the goals is to quantify market orientation by constructing indices of market orientation. Index of market orientation and innovation was calculated as an arithmetic mean of the measured values. The main method to reach the target was multiple regression analysis. The research confirmed hypothesis about existence of the relation between three dimensions of market orientation - customer intelligence generation (CUIG), intelligence dissemination & integration (IDI), responsiveness to market intelligence (RMI) and innovation in Czech Republic and Germany. No significant relationship was detected between dimension competitor intelligence generation (COIG) and innovation in either of the two countries. © 2015 ASERS Publishing House. All rights reserved.