Linking Market Orientation and Innovation Performance: The Mediating Role of Intellectual Capital

Bashir Ahmad and Masood Nawaz Kalyar

Abstract

This paper aims to explore the relationship between market orientation and innovation performance by examining the role of intellectual capital. To achieve research objective, this research particularly tries to find whether, MO impacts organizational IC, to find whether, IC impact innovative performance, and also to verify whether IC acts as a mediator between MO and innovative job performance. The target population of this study is Pakistani firms. Due to time and resource limits, the population was restricted to the city of Lahore. Through Convenience sampling data was obtained from manufacturing and service sector organizations. To test the hypothesized model, multiple mediation (indirect) analysis was utilized. The outcomes of the study partially supported the proposed model of this research. Importantly it is found that the human capital element of intellectual capital fully mediates the relationship between market orientation and innovative performance. On the other hand, surprisingly the results of this study did not support the intervening role of structural capital between market orientation and innovative performance instead, it was revealed that market orientation impact innovative performance. Results show that human capital is off
more importance than structural capital in creating high-value products. However, before making any inference the academicians and practitioners should consider sampling method and size of this study.
Keywords: Market Orientation, Innovation, Human Capital, Structural Capital