The mediating role of value innovation between market orientation and business performance: Evidence from the logistics industry

Abstract

As the logistics industry is suffering to adapt itself to the rapidly changing customer expectations, it needs to be innovative ever than before. However, once the innovation threshold has been exceeded, being more innovative does not create value. Also, to be innovative out of the market needs do not bring above average return. Therefore firms should adjust themselves to the market needs by getting to be market-oriented. Thus, the aims of this study are to investigate the relationships between market orientation and innovativeness related to firm performance and to advance the understanding of the role of the innovativeness in the context of the logistics industry. Results of this study have depended on a questionnaire survey conducted among logistics firms. The findings indicate strong relationships among market orientation, innovativeness, and firm performance. Foremost, inter-functional coordination and service innovativeness can significantly assist a firm in improving its performance. Copyright © 2020 Inderscience Enterprises Ltd.