Exploring performance of software houses. Market orientation and mediating role of firm innovativeness

Published date29 November 2019
DOIhttps://doi.org/10.1108/WJEMSD-05-2019-0033
Pages1-11
Date29 November 2019
AuthorSakhawat Ur Rehman Sahibzada Jawad,Sadaf Naushad,Seemab Yousaf,Zahid Yousaf
Subject MatterStrategy,Business ethics,Sustainability
Exploring performance
of software houses
Market orientation and mediating role of
firm innovativeness
Sakhawat Ur Rehman Sahibzada Jawad
Saibaan Development Organization, Mansehra, Pakistan
Sadaf Naushad
Department of Higher Education,
Government College of Management Sciences Abbottabad, Abbottabad, Pakistan
Seemab Yousaf
Department of Banking, Pak Oman Bank Abbottabad, Abbottabad, Pakistan, and
Zahid Yousaf
Department of Higher Education,
Government College of Management Sciences Abbottabad,
Abbottabad, Pakistan
Abstract
Purpose The purpose of this paper is to explore the impact of market orientation on firm performance of
software houses and examine the mediating firm innovativeness in the relationship between market
orientation and firm performance.
Design/methodology/approach Data were collected from the employees of software houses located in
two big cities of Pakistan. Mean, SD, correlation and regression analysis were conducted to check the
relationship among variables.
Findings Results show that the performance of software houses largely depends on firm innovativeness
and market orientation.
Research limitations/implications The authors recommend that further studies are required to test the
propositions in longitudinal research design for achieving in-depth insights.
Practical implications Software houses need to pay more attention toward market orientation
and innovativeness.
Originality/value It has been observed that software houses pay less attention toward market dynamics.
This research discusses an implementation approach based on solid theoretical foundations to achieve the
firm performance through market orientation and firm innovativeness.
Paper type Research paper
1. Introduction/background
In the current era, the research on software houses has gained scholarly attention
worldwide. Software houses need to focus on market orientation because this orientation
is recognized as the core element to success for software houses. Market orientation is
very helpful and guides organizations to create proper strategies to achieve the goal
effectively. Software firms that possess a high level of market orientation can focus on
customers and their needs (Narver and Slater, 1990). Additionally, firm innovativeness is
important to improve business performance of software houses. However, in the context
of Pakistan, there is hardly any evidence that show the interplay among firm
innovativeness, market orientations and performance (Crossan and Apaydin, 2010).
Especially, there is a need to explore how market orientation achieves firm performance
through firm innovativeness (González-Loureiro and Pita-Castelo, 2012). Firm
innovativeness provides firms with a means of creating a sustainable advantage
World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 16 No. 1, 2020
pp. 1-11
© Emerald PublishingLimited
2042-5961
DOI10.1108/WJEMSD-05-2019-0033
Received 24 May 2019
Revised 11 September 2019
Accepted 20 September 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5961.htm
1
Exploring
performance
of software
houses

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