Chapter 2: Market Orientation, Learning Orientation, and Innovativeness in the Global Marketplace: Moderating Roles of Organizational Memory and Market Turbulence
G. Tomas M. Hult and Destan Kandemir INTRODUCTION Recent research by Baker and Sinkula (1999a), Han, Kim and Srivastava (1998), and Hurley and Hult (1998) have centered on various aspects of the eﬀects of market orientation, learning, and innovativeness on performance. For example, Hurley and Hult (1998) conceptually integrated thoughts on these constructs, but only tested the learning → innovativeness link in their study of 9648 people in 56 groups of a large research and development agency of the US federal government. Han, Kim and Srivastava (1998) studied the market orientation → innovativeness link, but omitted learning both conceptually and empirically from their study of 134 banks. Baker and Sinkula (1999a) speciﬁcally set out to integrate the thoughts by Hurley and Hult (1998) and Han, Kim and Srivastava (1998). As such, they tested a model involving market orientation, learning, innovativeness, and performance using a sample of 411 ﬁrms drawn from the D&B database. While the Baker and Sinkula (1999a) study helps to clarify some of the integrative relationships involving market orientation, learning, and innovativeness discussed in the two studies by Hurley and Hult (1998) and Han, Kim and Srivastava (1998), their conceptual development is rather simplistic when, in all likelihood, the relationships are bound to be more complex. For example, Baker and Sinkula (1999a) make the assumption that all modeled relationships are linear without any diminishing return or ‘turning point’ (i.e. a point where, for example, more global market orientation may in fact result in no additional performance improvement...
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