The influence of innovation and marketing strategy on the market-oriented activities of the company in cement industry: the decisive role of environmental dynamics

Abstract

To be more valuable to customers than competitors, a company must develop competitive business strategies through marketing and operations. The present study aimed to develop a model for evaluating the impact of innovation dimensions, marketing strategy and market orientation on the company performance with the moderating role of environmental dynamism. This research is descriptive-correlative and applied in nature. A questionnaire was used for data gathering. Two hundred ninety-one top managers from nineteen cement factories in Iran were selected as the sample. Structural equation modelling (SEM), specifically SMART PLS, has been employed to assess the causal model and verify the validity and reliability of the measurement model. The findings showed that innovation dimensions, market orientation, and marketing strategies had significant effects on the company’s performance. Environmental dynamics modifies the relationship between process, product innovation, and performance, but process innovation is negative and significant. Finally, managerial implications and suggestions are provided. These findings provide valuable guidance for managers in the manufacturing sector to achieve the desired quality with the right strategies and create appropriate innovations in the manufacturing sector.