Market Orientation, New Product Development, And Organizational Performance: Insight From The Fashion Industry In Ghana.

Abstract

The purpose of this research is to examine the relationship between market orientation and performance in the fashion industry and further examine whether new product development has a mediation effect on the relationship between market orientation and firm performance. The research employed an explanatory research design to explain the cause and effective relationship among market orientation and firm performance. Self-administered questionnaires were employed in collecting the data. The target population for the study was footwear producers in Asafo, which is within Kumasi metropolis. After three-month period of data collection, two hundred questionnaires were valid for statistical analysis. The partial Least Square (PLS) method was used to test the hypothesis. The study revealed that market orientation variables of customer orientation, competitor orientation and inter-functional orientation impacted positively on performance. Competitor orientation and inter-functional impacted positively on new product development. Customer orientation as market orientation variable however impacted negatively on new product development and new product development impacted positively on firm performance. New product development fully mediates between competitor orientation as well as inter-functional orientation and firm performance. New product development has no mediation between customer orientation and firm performance. The study recommended that, the fashion industry should embark on market orientation practices and new product development activities to maximize performance.