THE MEDIATING EFFECT OF PROACTIVE MARKET ORIENTATION CAPABILITY IN ENTREPRENEURIAL ORIENTATION AND SERVICE INNOVATION

CANTALEANO, KAREN RAPHAELE; RODRIGUES, GRAZIELA PERRETTO; MARTINS, TOMAS SPARANO

doi:10.1590/1678-6971/eRAMR180038

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Resources and Entrepreneurial Development • RAM, Rev. Adm. Mackenzie 19 (1) • 2018 • https://doi.org/10.1590/1678-6971/eRAMR180038 copy

THE MEDIATING EFFECT OF PROACTIVE MARKET ORIENTATION CAPABILITY IN ENTREPRENEURIAL ORIENTATION AND SERVICE INNOVATION

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

Purpose:

The purpose of this article is to verify the mediating effect of a proactive market orientation capability in the relationship between entrepreneurial orientation (EO) and service innovation in micro and small companies in the food-away from home sector. We analyzed the mediating effect of a marketing capability (proactive market capability) because, according to Morgan et al. (2009)Morgan, N. A., Vorhies, D. W. & Mason, C. H. (2009). Market orientation, marketing capabilities, and firm performance. Strategic Management Journal, 30(8), 909-920., a capability is an ability developed from a strategic orientation, and capabilities and orientations together contribute to organizational performance.

Originality/Value:

The article verifies the mediating effect of a specific marketing capability, the proactive market orientation (PMO) in the proposed relationship. Most studies on market orientation (OM) treat the construct as a business strategic orientation, but few studies investigate market orientation based on the perspective of dynamic capabilities (Hou, 2008).

Design/methodology/approach:

A quantitative survey was carried out using a non-probabilistic sampling technique for convenience with 168 establishments. The research was carried out in micro and small companies of the food-way from home sector of Curitiba PR, and the respondents were the managers and owners of the establishments.

Findings:

The results indicate the existence of the mediating effect of PMO in the relationship between EO and service innovation.

KEYWORDS:
Entrepreneurial orientation; Proactive market orientation capability; Marketing capability; Service innovation; Micro and small business

EO Dimensions	Definition
Innovativeness	Willingness to innovate, to introduce novelties through creativity and experiments focused on the development of new products and services, as well as new processes.
Proactivity	Seeking opportunities, advancing by introducing new products and services and to act anticipating future demands to create change and shape the environment
Risk-taking	Tendency to act boldly. Venturing into new and unfamiliar markets, relying on a large portion of resources to risk with uncertain results, get loans heavily.

Item	Type	Quantity	%
1	Bar	5	2,9
2	Night Club	12	7,1
3	Menu Restaurant	43	25,6
4	Buffet Restaurant	20	11,9
5	Buffet per Weight Restaurant	21	12,5
6	All you can eat Restaurante	12	7,1
7	Pizzaria	8	4,8
8	Fast Food	30	17,9
9	Bakery/Pastry	17	10,1
Total		168	100%

Variables	Number of Indicators	Cronbach´s Alpha
EO	8	0,847
PMO	8	0,830
SERV INNOV	12	0,873

Variables	CR	AVE
EO	0,881	0,516
Innovativeness	0,810	0,681
Proactivity	0,825	0,701
Risk Taking	0,918	0,788
PMO	0,877	0,543
Service Innovation	0,874	0,502
Exploration	0,888	0,725
Exploitation	0,922	0,747

	SERV INNOV	EO	PMO
SERV INNOV	0,708
EO	0,608	0,719
PMO	0,569	0,671	0,737

Hypothesis	Path coefficient (β )	t-value	Hypothesis
H1: EO has a direct and positive effect on service innovation.	0,411	4,186	Accepted
H2: The PMO marketing capability acts as a mediating variable, and has an indirect and positive effect on the relationship between EO and service innovation.	0,294	3,008	Accepted

Editora Mackenzie; Universidade Presbiteriana Mackenzie Rua da Consolação, 896, Edifício Rev. Modesto Carvalhosa, Térreo - Coordenação da RAM, Consolação - São Paulo - SP - Brasil - cep 01302-907 - São Paulo - SP - Brazil
E-mail: revista.adm@mackenzie.br

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[1] KAREN RAPHAELE CANTALEANO

Master degree in Management, Universidade Federal do Paraná. Avenida Lothario Meissneer, 632, Jardim Botânico - Curitiba - PR - Brazil - CEP 80210-170 E-mail:karenraphaele@gmail.com ORCID: 0000-0001-8860-7015

1	(INNOV1) Our company gives a strong emphasis on research and development of new technologies and innovation for food products / services.
2	(INNOV2). In recent years our company has developed new product lines / services. (E.g. meal, menu, service system, etc.).
3	(INNOV3) Regarding competitors, our company always initiates innovative actions that are followed by other companies.
4	(PROACT1) Our company is frequently the first to introduce new products / services, new management techniques, new technologies, etc.
5	(PROACT2) Our company always adopts a competitive position with respect to other competing companies.
6	(RISK1) Our company is inclined to take high risks, with chances of high return.
7	(RISK2) Our company believes that due to the nature of the business environment, bold actions are necessary to achieve our objectives.
8	(RISK3) When decision-making involves uncertainties, our company takes a bold and aggressive stance in order to maximize the potential opportunities that appear.

9	(PMO1) We bring market trends before our customers ask.
10	(PMO2) We continually try to uncover additional, unconscious needs of our customers.
11	(PMO3) We incorporate solutions for our clients' non-explicit needs into our products and services.
12	(PMO4) We discuss internally and generate ideas / solutions together about how our customers use our products/services.
13	(PMO5) We innovate even if it makes our products obsolete.
14	(PMO6) We seek opportunities in areas where our clients find it difficult to express their needs.
15	(PMO7) We act together with our most frequent customers to recognize customer needs in general.
16	(PMO8) We extrapolate market trends to gain insight into what current users will need in the future.

17	(EXPT1) We often refine the existing services.
18	(EXPT2) We regularly implement small adaptations for existing services.
19	(EXPT3) We introduce the improved version of our existing services in the market.
20	(EXPT4) We have improved the efficiency of our service.
21	(EXPT5) We standardize our products / services to serve a greater number of people in the market in which we operate.
22	(EXPT6) Our company expands services to its current customers.
23	(EXPR1) Our company accepts demands that go beyond existing services.
24	(EXPR2) We invent new services.
25	(EXPR3) We try new services in the market.
26	(EXPR4) We sell services that are completely new to our company.
27	(EXPR5) We often promote new opportunities in new markets.
28	(EXPR6) Our company regularly uses new distribution channels.

Outer Loadings Entrepreneurial Orientation (EO)* EO Dimension loading.
Indicators	Dimensions	Construct
Innovativeness		* 0,821
1. (INNOV 1) (research and development)	0,822
3. (INNOV 3) (initiates innovative actions)	0,828
Proactivity		* 0,800
4. (PROACT 1) (First to introduce new products / services)	0,843
5. (PROACT 2) (Competitive position)	0,833
Risk Taking		* 0,873
6. (RISK 1) (high risks with high return chances)	0,899
7. (RISK 2) (audacious actions to achieve objectives)	0,881
8. (RISK 3) (bold and aggressive posture)	0,883

Outer Loadings for Proactive Market Orientation (PMO)
Indicators		Dimensions
9. (PMO1) (market trends)		0,747
10. (PMO 2) (non-conscious customer needs)		0,774
11. (PMO 3) (solutions for non-explicit needs)		0,743
14. (PMO6) (opportunities where clients have difficulties expressing their needs)		0,697
15. (PMO 7) (recognize customer needs before competitors)		0,753
16. (PMO 8) (Extrapolating the trends)		0,702

Outer Loadings for Service Innovation
Indicators		Dimensions
Exploitation		*0,888
17. (EXPT1) (we refine customer services)		0,831
18. (EXPT2) (minor adaptations)		0,870
19. (EXPT3) (enhanced version)		0,880
20. (EXPT4) (we improve efficiency)		0,874
Exploration		*0,733
24. (EXPR2) (we have invented new services)		0,873
25. (EXPR3) (we try out new services)		0,844
26. (EXPR4) (we sell services that are new to our company)		0,837