A Study on Effects of the Manufacturer’s Market Orientation on Innovative activity and Business Performance

This study is intended to define the interrelationship between market orientation, enterprise innovative activity and management performance of Korean manufacturing companies. In order to achieve this objective, analysis was conducted on how market orientation affected to enterprise innovative activity and management performance with 526 enterprises (180 large and 346 small and medium companies). In particular, enterprise innovative activities were analyzed in related with management performance on the basis of different activities such as product innovation, process innovation, organization innovation activities. The result of analysis showed that market orientation affected significantly on product innovation, process innovation and organization innovation activities, and in turn, product innovation and organization innovation affected significantly on business performance. However, it indicated that process innovation activity did not affect significantly on business performance. Furthermore, the result of analysis showed that market orientation had no significant direct effect on business performance.