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Testing Interaction Effects of the Dimensions of Market Orientation on Marketing Program Novelty: Two-Stage Least Square Estimation Approach

Directory : Faculty : Intellectual Contributions

Intellectual Contribution by Mahmood Hussain

Contribution Title

Testing Interaction Effects of the Dimensions of Market Orientation on Marketing Program Novelty: Two-Stage Least Square Estimation Approach

Conference

AMA Summer Educator's Conference

Year

2005

Description

Despite the plethora of research on market orientation after the seminal work by Narver and Slater (1990) and Jaworski and Kohli (1990), our understanding of how different dimensions of market orientation (MO) interact with each other in generating new intelligence for marketing program is limited. In this paper, we develop and test a model that examines the interaction effects of the three dimensions of MO-- customer orientation (CUO), competitor orientation (COO), and cross-functional integration (XFI)-- on generation of marketing program novelty (MP novelty). In empirically testing such effects, we used 206 data collected from product managers in high-tech industry and illustrated how to use two-stage least square (2SLS) estimation since the presumably ideal approach to test interaction effects using structural equation model suffers from the inadequacy of significance test and fit statistics. We found significant positive interaction effects between CUO and COO and between COO and XFI on the generation of MP novelty. We further found that 2SLS estimation provides a slightly better fit of the model than OLS estimation. Our empirical results provide further implications and directions for MO research and research methodology for testing interaction effects.

Complete Citation

Hussain, Mahmood Subin Im, and Sanjit Sengupta, "Testing Interaction Effects of the Dimensions of Market Orientation on Marketing Program Novelty: Two-Stage Least Square Estimation Approach," AMA Summer Educator's Conference, San Francisco, July 2005.

Website

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