Effect of market positioning on market orientation, innovation types and firm performance linkage

Abstract

Market positioning activities must be carefully planned and reconciled with other marketing strategies and business activities. Most studies have assessed the impact of market orientations and innovations on firm performance. This study was designed to test the moderating effect of market positioning on the relationship between innovation types and firm performance. The study used the resource based view, the competitive advantage paradigm as a framework in testing the theoretical relationships between the constructs. The study adopted a corelational research design and it involved the use of a questionnaire-based survey of a random sample of 220 managers of Manufacturing Companies. Demographic characteristics of the respondents are presented as well as exploratory factor analysis, scale reliabilities and confirmatory factor analysis. Regression results indicate a positive relationship between market orientation, innovation types and performance. Mixed results from moderator regression analysis are presented. Conclusions and practical recommendations are given.

Key Words: Market positioning, Market orientation, innovation and firm performance.