Title: The impact of market-based assets on innovativeness and business performance

Authors: Sami Kajalo; Arto Rajala; Matti Tuominen

Addresses: Department of Marketing, Aalto University School of Business, P.O. Box 21230, 00076 Aalto, Finland ' Faculty of Business Studies, University of Vaasa, P.O. Box 700, 65101 Vaasa, Finland ' Department of Economics and Management, University of Helsinki, P.O. Box 27, 00014 University of Helsinki, Finland

Abstract: This study examines the influence of market-based assets on innovativeness and business performance. The concept of market-based assets builds on the resource-based view (RBV) of the firm. Despite several recent studies, empirical evidence of the dependencies between market-based assets and innovativeness remains scarce. Based on existing literature, this paper identifies three distinct market-based assets: customer-based assets, channel-based assets and partner-based assets. In particular, the study investigates the effects of these assets on both product innovativeness and business process innovativeness, and on business performance in terms of effectiveness and efficiency. The data are from 5,627 firms from 13 countries analysed using structural equation modelling. The results show that the three market-based assets affect product innovativeness more strongly than business process innovativeness. The results show that market-based assets and innovativeness are key drivers of business performance.

Keywords: resource-based view; RBV; market-based assets; customer-based assets; channel-based assets; partner-based assets; innovativeness; business performance; structural equation modelling; SEM; product innovation.

DOI: 10.1504/IJBIR.2016.079511

International Journal of Business Innovation and Research, 2016 Vol.11 No.4, pp.584 - 596

Received: 12 Apr 2014
Accepted: 26 Jul 2014

Published online: 15 Sep 2016 *

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