The Empirical Research On The Influence Of Market Orientation And Technology Orientation On Firm Performance

Advances in information technology make the marketing environment becomehighly competitive and turbulent, which greatly impact the original managementidea and behavior patterns of enterprises.To establish sustainable competitiveadvantage, The focus of competition in enterprises is from the product or service tothe business model innovation. As the famous management guru Peter Drucker says:"Today the competition between companies is not the competition of products, butthe competition of business models. More and more enterprises start to focus onbusiness model innovation, in order to seek sustainable competitive advantage.Throughout many success or failure cases of business model innovation, the keyfactor for business model innovation success or failure lies in the strategy andcorresponding organization ability. Market Orientation and Technology Orientationcan help enterprise successfully coped with changing market conditions, and aregetting more ang more attention both in practical and theoretical area. However, inthe process of business model innovation, the mechanism of how the combination ofthe two types of strategies influence the business model innovation is still not clear.There is also lack of empirical data to fully testify it, so there comes further study.In order to make up for the deficiencies of theoretical research and meet needsof enterprise practice, this study is based on the reviewing related literatures, andconstructs a theoretical model which introduce the mechanism of how MarketOrientation, Technology Orientation influence Business Model Innovation. Anempirical study with a sample of133enterprises from Hunan Province is conducted.The results show that Market Orientation and Technology Orientation have indirecteffect on performance through the Business Model Innovation. Market Orientationand technology Orientation positively affect the efficiency-centered andnovelty-centered business model innovation. Market Orientation’s direct influenceon the efficiency-centered business model innovation is greater than thenovelty-centered business model innovation. Technology Orientation’s directinfluence on the novelty-centered business model innovation is greater than theefficiency-centered business model innovation. Our analysis also shows thatefficiency-centered and novelty-centered business model innovation have positiveeffects on firm performance. The efficiency-centered business model innovation’sinfuence on financial performance is greater than market performance, and novelty-centered business model innovation is the opposite of it. Additionally, Themoderating effect of environmental uncertainty are verifiedManagerial implications are as follows: building a rational culture of marketand technology orientation for the business model innovation; reinforcing thecapability of business model innovation; and viewing the influence of environmentalfactors flexibly.