The Study On Relationship Between Market Orientation And Competitive Advantage

In today's increasingly competitive market, how to master the target market, to promote continuous learning and organizational innovation, has become key factor to form and maintain competitive advantage in enterprises. According to the extensive literature review, this paper does a systematically in-depth theoretical and empirical research on the mechanism between market orientation, knowledge integration, organizational innovation and competitive advantage through structural equation model.This paper made a case study by means of questionnaire survey in the enterprise's senior managementers conducted in 86 SMEs in seven regions of Zhejiang Province, 179 valid samples were collected. After tests of reliability and availability of samples we tested the hypothetic model by ANOVA, correlation analysis, regression analysis and structural equation model (SEM), and the results are shown as follows: 1) Market orientation in SMEs has a significant positive impact on knowledge integration. 2)The market orientation in SMEs not only directly affects organizational innovation, also indirectly affects it through the intermediary function of knowledge integration. 3) Organizational innovation in SMEs plays an entirely intermediary role between knowledge integration and competitive advantage. 4) The market orientation in SMEs directly affects competitive advantage, and also indirectly affects it through knowledge integration and organizational innovation. The above findings have some significance to the management practices of SMEs in China, and propose some reference management inspirations that SMEs should not only focus on the cultivation of corporate culture ,but also enhance the level of attention to organizational innovation and create an enabling knowledge sharing, knowledge integration of the business climate .