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Innovation orientation and long-term performance: The mediating role of market perception capability

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Abstract

This paper examines the relationship between the orientation towards innovation of SMEs and long-term performance, considering market perception capability as a mediating variable. This research topic is important because it can provide a better understanding of the relationship between innovation orientation and performance, since most of the previous papers that have analyzed this relationship have done so from a short-term perspective. But the effect of innovation orientation on performance may not be immediate and short-term, but long-term, and may be influenced by the company’s ability to develop marketing capabilities. A sample of 77 independent hotels is taken for empirical contrast and a system of structural equations is modelled using the Partial Least Squares (PLS) technique. The results show that the company’s capacity to understand the market in which it operates functions as a mechanism that intervenes in the relationship between innovation orientation and long-term result, with a mediating effect that explains the positive effect of innovation orientation on the long-term results.

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  1. Departamento de Dirección de Empresas. Juan José Renau Piqueras, Universidad de Valencia, Avda. Naranjos, s/n, 46022, Valencia, Spain

    Antonia Mohedano-Suanes  & Dolores Garzón

  2. Departamento de Administración de Empresas y Marketing, Universidad de Sevilla, Avda. Ramón y Cajal, 1, 41005, Sevilla, Spain

    María-Ángeles Revilla-Camacho

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  1. Antonia Mohedano-Suanes
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  2. María-Ángeles Revilla-Camacho
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Mohedano-Suanes , A., Revilla-Camacho , MÁ. & Garzón, D. Innovation orientation and long-term performance: The mediating role of market perception capability. Int Entrep Manag J 17, 741–757 (2021). https://doi.org/10.1007/s11365-020-00736-0

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