The Role of Psychological Empowerment and Tendency to Entrepreneurship in Relationship between Market-orientation and Organizational Innovation

Document Type : Research Paper

Authors

1 Assistant Prof. in Management, Faculty of Economics, Management & Social Sciences, Shiraz University, Shiraz, Iran

2 Assistant Prof. in Management, University of Kashan, Kashan, Iran

3 MSc. of Entrepreneur, University of Kashan, Kashan, Iran

Abstract

This paper aims to identify and explain the effects of market-orientation on innovation with regard to mediation role of employee psychological empowerment and moderated effects tendency to entrepreneurship in this relationship. Present Research is a survey- descriptive research according its methodology and interested populations are 250 people of personnel of Aghajeri Gas and Oil Company. It is used a questionare with confirming its validity and reliability to data gathering. In order to analyze, Researchers used SEM by Smart PLS software. The results show that market-orientation and psychological empowerment has a positive effect on organizational innovation Psychological empowerment also mediates the relationship between market-orientation and organizational innovation. Tendency to entrepreneurship don’t moderate the relationship between market-orientation and organizational innovation, while its direct effect was confirmed.

Keywords

Main Subjects


Abtahi, S. H. & Abesi, S. (2007). Personnal Empowerment. Karaj: Inistituation of Management R&D. (in Persian)
Aghajari, M. (2016). Explanation the role of market-orientation organization on innovationwith an emphasis on mediation the employee psychological empowerment and the moderatedof tendency to entrepreneurship (the case of unit karang Aghajeri Oil and Gas Exploitation Company employees). MA Thesis, Kashan: University of Kashan. (in Persian)
Ahmadpour Dariani, M. (2000). Entrepreneurship: Definitions, Theories, Patterns. Tehran: pardis publication. (in Persian)
Appelbaum S. H. & Hongger K. (1998). Empowerment: a Contrasting Overview of Organizations in General and Nursing in Particular – an Examination of Organizational Factors, Managerial Behaviors, Jobdesign and Structural Power.Journal of Empowerment in Organization,6(2), 29-50.
Augusto, M. & Coelho, F. (2009). Market orientation and new-to-the-world products: exploring the moderating effects of innovativeness, competitive strength, and en-vironmental forces. IndustrialMarketingManagement, 38(1), 94-108.
Avolio, B. J., Zhu, W. & Bhatia, P. (2007). Transformational Leadership & Organizational Commitment, Mediating Role of Psychological Empowerment. JournalofOrganizationalBehavior, 25(8), 951-968.
Babaahmadi, M. (2010). Survey the effect of organizational culture on healthcare staff empowerment. MA Thesis, Tehran: university of payamenoor.
(in Persian)
Brown, M. & John, C. (2004). Internal Benefit of Service- Worker Customer Orientation: Job Satisfaction Commitment, and Organizational Citizenship Behaviors.JournalofMarketing, 68(1), 128-146.
Choopani, H. (2011). Survey the relationship between transformational leadership and tendency to organizational innovation. MA Thesis, Tehran: university of Tehran. (in Persian)
Davodi, S. (2011). opportunitism in orbit of opportunity. Tehran: fekr no publication. (in Persian)
Demircan Ç. N. (2010). Comparing Innovation Capability of Small and Medium-Sized Enterprises: Examining the Effects of Organizational Culture and Empowerment. Journal of Small Business Management, 48(3), 325-359.
Emani, S., Gaskari, R. & Ghitani, A. (2015). The effect of internal marketing on employee performance: mediated effect of organizational innovation in sub offices ofAghajeri Oil and Gas Exploitation Company. Business Management, 7(2), 315-338. (in Persian)
Eskandari, P. & Yosefi, N. (2014). The relationship between employee empowerment and organization market oriented. International conference of management in 21st Century. Tehran: inistituation of ideh pardaz managers. (in Persian)
Fattahi, S. (2010). Survey the relationship between psychological empowerment and organizational entrepreneurship. Industrial management studies, 16(6), 99-124. (in Persian)
Garosi Mokhtarzadeh, N. & Zamani, M. (2015). The effect of market oriented and management innovation on firm performance by emphesising on the mediated role of technology innovation. Business Management, 2(7), 463-484. (in Persian)
Hooman, H. A. (2008). Structural equation modelling by LISREL. Tehran: Samt publication. (in Persian)
Hult, G.T.M., Ketchen, Jr., D.J. & Slater, S. F. (2005). Market orientation and performance: An integration of disparate approaches. StrategicManagementJournal,26(12), 1173–1181.
Hurley, R.F. & Hult, T. (1998). Innovation, market orientation, and organizational learning: An integration and empirical examination. JournalofMarketing, 62(3),42 54.
Jantz, R.C. (2012). A Framework for Studying Organizational Innovation in Research Libraries. College & Research Libraries, 73 (6), 525-541.
Jimenez, J.D., Valle, S.R. & Hernandez, E. M. (2008). Fostering innovation: the role of market orientation and organizational learning. European Journal of Innovation Management, 11(3), 389-412.
Kohli, A. K. & Jaworski, B. J. (1990). Market Orientation: The Construct, Research Propositions, Managerial Implications. JournalofMarketing,54(2), 1-18.
Lee, M. & Koh, J. (2001). Is Empowerment Really a New Concept? International JournalofHumanResourceManagement, 12(4), 684-695.
Lin, Ch.H., Peng, Ch.H. & Danny, T. K. (2008). The innovativeness effect of market orientation and learning orientation on business performance. International Journal of Manpower, 29(8), 752-772.
Lumpkin, G. T. & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. TheAcademyofManagementReview, 21(1), 135-172.
Madhoshi, M., Tabibi, M. R. & Delavari, H. R. (2015). The effect of market oriented and Entrepreneurship oriented on innovation in SMEs. Business Research Quarterly, 65(17), 115-136. (in Persian)
Menon, A. & Varadarajan, P.R. (1992). A Model of Marketing Knowledge Use with in Firms.JournalofMarketing, 56 (4), 53-71.
Miller, D. & Friesen, P. (1983). Innovation and Conservative and Entrepreneurial Firm. StrategicManagementJournal, 3(1), 1-25.
Motahari, A. (2007). Entrepreneurship, Creativity, Innovation. Tehran: Azadmehr publication. (in Persian)
Ngansathil, W. (2001). MarketOrientationandBusinessPerformance:EmpiricalEvidencefromThailand.The University of Melbourn.
Pakniat, A. & Fathizadeh, A. (2008). Employee Empowerment: requirments and policies. Management Quarterly. 5(11), 33-47. (in Persian)
Ranjbarian, B., Fathi, S., Ghorbani, H. & Abzari, M. (2009). the effect of internal marketing on market oriented on organizational performance. Vision of Management, 31(8), 25-42. (in Persian)
Ruppel, C. P. & Harrington, S. J. (2000). The relationship of communication. Ethical work climate and trust to commitment and innovation.JournalofBusinessEthics, 25(4), 313-328.
Sadeghi Toroghi, M. (2012). Survey the effect of TQM and market oriented on organizational performance. MA Thesis, Mashhad: ferdowsi university of Mashhad. (in Persian)
Safari Kahreh, M., Ahmadi, H. & Hashemi, A. (2011). Achieving Competitive Advantage through Empowering Employees: An empirical Study. FarEastResearchCentre,3(2), 26-37.
Slater, S. F. & Olson, E. M. (2001). Marketing's contribution to the implementation of business strategy: An empirical analysis. Strateg ic Management Journal, 22(11),1055–1068.
Slater, S.F. & Narver, J.C. (1995). Market Orientation and the Learning Organization. Journal of Marketing, 59(3), 63-74.
Speritzer. G. M. (1995). Psycological empowerment in the work place. dimensions, measurement, and validation, Academy of managementjournal. 38(5), 1442-1465.
Spreitzer, G.M., Kizilos, M.A. & Nason, S.W. (1997). A Dimensional Analysis of the Relationship between Psychological Empowerment and Effectiveness, Satisfaction, and Strain. JournalofManagement,23(5), 679-704.
Subramaniam, M. & Youndt, M. A. (2005). The influence of intellectual capital on the types of innovative capabilities. AcademyofManagementJournal, 48(3), 450-463.
Taghipor Zoheir, A. & Jahanian, R. (2009). Survey training managers’ empowerment in order to present suitable framework for school’s mangers. Journal of management researches, 20(83), 123-136. (in Persian)
Tajeddini, K. (2010). Effect of customer orientation and entrepreneurial orientation on innovativeness: Evidence from the hotel industry in Switzerland. TourismManagement, 31(2), 221–231.
Taregh, KH. (2002). Technology Management. Tehran: cultural researches office publication. (in Persian)
Taylor, C. R., Hoon, K.K., Ko, E., Park, M. H., Kim, D. R. & Moon, H. (2008). Does having a market orientation lead to higher levels of relationship commitment and business performance? Evidence from the Korean robotics industry. IndustrialMarketingManagement, 37(7), 825-832.
Thomas, K. W. & Velthouse, B.A. (1990). Cognitive Elements of Empowerment: An Interpretive Model of Intrinsic Task Motivation. AcademyofManagementJournal,15(4), 666-681.
Verhees, F. J. H. M. & Meulenberg, M. T. G. (2004). Market Orientation, Innovativeness, Product Innovation, and Performance in small Firms. Journal of Small Business Management, 42(2),134- 136.
Wallnofer, M. & Hacklin, F. (2013). The business model in entrepreneurial marketing: A communication perspective on business angels' opportunity interpretation. IndustrialMarketingManagement, 42(5), 755-764.
Wharton, B. (2007). Linking Psychological Empowerment to Innovation Capability: Investigating the Moderating Effect of Supervisory Trust.InternationalJournalofBusinessandSocialScience, 14(3), 153-165.
Wong, S.Y. & Chin, K. S. (2007). Organizational innovation management: an organization-wide perspective.IndustrialManagement&DataSystems, 107 (9), 1290-1315.
Yılmaz, E. & Sunbul, A. M. (2008). Universite Ogrencilerine Yonelik Girişimcilik Ölçeğinin Geliştirilmesi. SelcukUniversitySocialSciencesInstituteJournal, 3(2), 275-286.