Project Team: Dr. Anne Marie Ivers ([email protected]), Dr. Anthony Foley ([email protected])
This study was funded by the Telecommunications Software and Systems Group (TSSG) Scholarship. The study had a lead time of 4 years and was completed in September 2012.
The Project Aim
The study investigated the moderating influence of network capability on the relationship of market orientation with performance. Market orientation is a critical organisation capability which reflects the ability of the organisation to understand and respond to the needs of the market. The relationship between market orientation and performance has attracted substantial attention and there is evidence, though not wholly consistent, to support a positive impact of market orientation on performance. The ability of the firm to capably manage its network of relationships illustrates network capability. Examination of the network dimension to market orientation has been surprisingly sparse, with studies limited to market orientation of the organisation’s external or internal network. However, the influence of network capability on market orientation efficacy has been relatively ignored in the literature. This is surprising as the focus of market orientation is outward facing to the market, capturing insights into market dynamics and using these insights to drive a more meaningful customer focus. The empirical context for this study is rooted in the university spin out sector. These enterprises tend to represent high potential for value creation, with intellectual property originating in university research in key economic areas such as biotechnology and electronics. The primary aim of the study was to investigate the influence of network capability on the market orientation capability of Irish academic spin out companies, and the subsequent innovation success outcomes that emerge from the network capability and market orientation relationship. A secondary aim of the study explored the nature and role of the university (academic) network in linking the spin out company to the market.
Methods
A three phase approach was taken to the research design which adopted both quantitative and qualitative research methods. Phase 1 encompassed initial scoping interviews with Technology Transfer Managers to investigate the dynamic in the academic spin out network; Phase 2 consisted of a survey of directors of university spin outs in Ireland, assessing relationships between key constructs such as market orientation, network capability, market sensing, innovation, and performance. Phase 3 comprised in depth interviews with university spin out Directors, to explore how network capability enhances the efficacy of market orientation.
Engagement
The project involved significant engagement with key actors such as Technology Transfer Units and directors of university spin outs in Ireland.
Outcome
The findings of the survey support a positive moderating influence of network capability, specifically partner knowledge and relational skills, on the relationship between market orientation and innovation success. Overall, the findings of the study provide evidence for the influence of partner knowledge and relational skills on market orientation, particularly on the intelligence generation dimension, and also in enhancing organisation responsiveness, leading to market focused innovation. The study contributes to the literature in bringing a network capability focus to examination of the efficacy of market orientation, and also through empirical investigation of the nature of network management capabilities within the academic network. An integrated model of network market orientation for academic spin out companies is proposed, which has utility for both research and practice.
RIKON 2013.