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Abstract
Continuous environmental changes are forcing firms to adapt an appropriate strategic approach and match its strengths with environmental opportunities. Researchers in marketing and strategic management have shown the relationship between marketing and entrepreneurship with the organizational operation in different industries. In spite of the effects of such variables on the innovation of products, these are less considered by Iran's auto parts manufacturers. Considering the importance of market orientation and entrepreneurship orientation approaches for the maintenance of organizations and confrontation with the rivals, the present research investigates the effect of such variables on the innovation of new products. The research findings will provide the managers with appropriate information for the adoption of a strategic balanced approach.
Keywords: Entrepreneurship orientation, market orientation, innovation of product, auto parts manufacturing
INTRODUCTION
Intensity of competition, rapid globalization and changing technology have made innovation inevitable for firms. It is crucial for commercial organizations not only to capture new opportunities but also to pay more attention on the development of their products and market to maintain their competitive advantage (Tajeddini, Trueman and Larsen, 2006). It is established in the literature that organizations that foster the ability to build an effective relationship between entrepreneurial orientation and market orientation are better able to create and sustain competitive advantage (e.g., Atuahene- Gima and Ko, 2001; Tajeddini, 2010). Moreover, with known needs of their customers, market oriented firms may lose some of their opportunities for developing new product only due to customer's inability to describe their new needs (Hamel and Prahalad, 1994). Therefore, these firms are in need of creating an entrepreneurial oriented approach to make sure of continuous care to novel and unknown needs of customers (Atuahene-Gima and Ko, 2001). On the other hand, concentrating on unknown and novel needs of customers, entrepreneurial oriented approach is seeking superiority and dominance in market over other rivals (Atuahene -Gima and Ko, 2001; Slater and Narver, 1995; Hamel and Prahalad, 1994). However, the danger threatening firms is that their new products that are of an advanced technology may face defeat in market (Atuahene- Gima and Ko, 2001). Thus, an appropriate combination of the two approaches enables any firm to acquire a suitable knowledge regarding customers, rivals and also the firm's present and future situation. Therefore,...