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Statistical Examination of the Customer and Competitor Orientation Impact on Economic Performance: The Mediating Role of Innovation Capability |
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PP: 543-552 |
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doi:10.18576/jsap/150312
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Author(s) |
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Abdullah Ali Alsadoun,
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Abstract |
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| This study examines the influence of customer orientation and competitor orientation on innovation capability and
their subsequent impact on economic performance in the Saudi manufacturing sector. A quantitative research design was applied, and data were collected from 341 employees working in manufacturing organizations. Data were analyzed using structural equation modeling with SmartPLS. The findings reveal that both customer orientation and competitor orientation significantly enhance innovation capability, which in turn exerts a strong positive effect on economic performance. Mediation analysis confirms that the relationship between customer and competitor orientation, and economic performance is primarily indirect, operating through innovation capability. The results emphasize the critical role of innovation capability as a strategic bridge between market orientation and financial success. The study reinforces the importance of leveraging customer and competitor intelligence through innovation to achieve sustainable economic gains. This means fostering an innovation-driven culture that systematically integrates market insights into decision-making. Implications for managers highlight the need to
align customer and competitor insights with innovation processes to sustain competitive advantage. |
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