Research On The Impact Of Market Orientation On New Product Performance

In the context of globalization and fierce market competition,innovation is the source of development to an enterprise,only part of them can survive of the fittest.How to build their own competitive advantage in the unpredictable environment through innovation has become the focus of attention.The efficiency of new product development and market reaction to a certain extent reflect the enterprise's innovation ability.Ideas of enterprise innovation comes from the change of market demand.The current market environment,technical environment is complex and changeable.New product development is an important means to maintain their competitive advantage in the fierce competition.Market oriented enterprises concerned on changes in the market environment,producing new product according to changes in customer demand and competitor behavior.Then,there will form market oriented culture in enterprises,and all departments participate in the development and utilization of information in the market.This is an important strategic choice for enterprises to effectively respond to the change of external environment condition,also,can make-the enterprise response to changes in customer demand and competitor behavior changes more quickly.Themarket orientation has become one of research focus in the field of marketing and gain more and more attention in the field of theory and practice,but with a review of the existing theoretical research,we find the relationship between market orientation and new product performance has not yet formed a unified conclusion,most scholars believe that the market leading to a positive effect on new product development,but some scholars demonstrated that there is not a significant relationship between the two variables or market orientation has a negative effect on breakthrough innovation,so it needs further study to explore the relationship between the two variables.In order to compensate for the lack of theoretical research,this paper summarizes the relevant literatures and combines the development of reality of market orientation.We believe that the current attitude towards to market orientation is too optimistic,ignoring the possible risk caused by the research and promotion of new products.Therefore,this paper puts forward the nonlinear relationship between market orientation and new product performance,and introduces the strategic flexibility as the moderating variable,and constructs the theoretical model between the three variables.According to the difference of industry characteristics,this paper will limit the sample in software industry which is in the ever-changing market environment.The 202 software enterprise data confirms three dimensions of market orientation and two dimensions of new product performance(except the relationship between competitor orientation and new product market performance)is the inverse U relation.Strategic flexibility play a positive moderator role in the market orientation and new product performance has also been proved partly.According to the research conclusion,this paper puts forward the corresponding policy recommendations.Enterprises in the development of new products must use market orientation in a reasonable way,not blindly follow the market,and keep market orientation and strategic flexibility in a matchable level.This has a great significance influence for enterprises to form sustainable competitive advantage and improve the performance of new products.