The Effects of Market Orientation on Product Innovation

In the literature, market orientation is defined as a business culture or behaviour that leads to business success. Its influence on product innovation is one way to enhance business performance. The goal of this paper is to analyses the impact of behavioural components of market orientation on the introduction of product innovation regarding its novelty. Research of this type was the subject of the Lukas and Ferell (2000) study. Following their approach, but hypothesizing different relationships, research on the impact of the behavioural components of market orientation on product innovation in Croatian companies was conducted. The intensity of the market orientation components is measured using the MKTOR scale developed by Narver and Slater (1990), whose approach to market orientation is accepted in this paper.