Innovation And Performance Implications of Customer-Orientation Across Different Business Strategy Types

Abstract

The strategic orientation of a company plays a critical role in setting its goals and objectives, influencing both internal capabilities and external performance. While existing literature has extensively explored the impact of strategic orientations on company growth, there is limited research on how these orientations affect a company’s internal structural capabilities and the role of radical innovation in enhancing business operations. This study addresses these gaps by conceptually integrating strategic orientations, radical innovation capacity, competitive advantages, and business performance within the context of arts and culture organizations.

To achieve this, we employed a quantitative research design, gathering primary data from a sample of 86 arts and culture organizations. Using a combination of regression analysis and Partial Least Squares Structural Equation Modeling (PLS-SEM), we examined the relationships between market orientation, entrepreneurial orientation, radical innovation capacity, and their effects on competitive advantages such as brand and product superiority.

Our findings reveal that both market orientation and entrepreneurial orientation significantly enhance an organization’s capacity for radical innovation. Moreover, after radical innovation capacity and product advantage, brand advantage emerges as a crucial determinant of organizational success. These results provide new insights into the strategic priorities of cultural and creative businesses in fast-growing economies. Additionally, our study underscores the importance of radical innovation in establishing market differentiation and achieving commercial success in the cultural and creative sectors.

This research contributes to the broader understanding of how strategic orientations and innovation capacities interact to drive performance in cultural organizations. Future studies should continue to explore these dynamics across different industries and contexts.