Analytical model of the mediating role of organizational innovation between market orientation and the performance of small and medium businesses in East Azerbaijan province

Document Type : Original Article

Author

Assistant Professor, Department of Business Administration, Payame Noor University (PNU), Tehran, IRAN

Abstract

The purpose of this paper was to investigate the relationship between market orientation, organizational innovation and performance of small and medium enterprises. For this purpose, the research hypotheses were formulated with exploratory approach and comprehensive literature review, and indicators were identified for measuring each of these variables. Then, by establishing theoretical relations between the main research structures, the conceptual model of the research was designed and presented. The data needed to test the hypotheses were collected by a questionnaire and a sample of 170 individuals from the small and medium enterprises of the East Azerbaijan province. According to the findings, direct and significant relationship between market orientation and business performance and the positive and significant relationship between organizational innovation and performance were confirmed. Also, the impact of market orientation on performance has been confirmed through its impact on innovation. The values of the coefficient of paths in the final model showed that market orientation is explaining directly 23.3% of the variation of performance variable, and it is indirectly 21% through the mediator of organizational innovation. The simultaneous analysis of the factors studied on the performance by structural equation method, as well as the calculation and analysis of fit indices and quality criteria of measurement models and structural model with PLS software, confirms the conformance of conceptual model and empirical background to reality.

Keywords

Main Subjects



Articles in Press, Accepted Manuscript
Available Online from 27 January 2024
  • Receive Date: 04 November 2023
  • Revise Date: 18 January 2024
  • Accept Date: 27 January 2024