MS / M.Phil

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Role of Human Capital in Market Orientation – Innovation relationship
(UMT.Lahore, 2017) ADNAN SIDDIQUE
Academics and practitioners have considered and regarded innovation as a way to gain sustainable competitive advantage over rival firms. Although market orientation and innovation have been studied and found to impact a firm’s ability to innovate separately but how do they interact with each other has not been studied before. Thus, drawing from the theory of organizational learning, this study proposes that human capital mediates the relationship between market orientation and innovation. Market-oriented firm is essentially a learning organization. Since a firm learns through its employees, therefore when a firm learns it entails the acquisition of new knowledge and skills by its employees which affects innovations taking place in the firm. To test the mediating role of human capital in market orientation – innovation relationship, data was collected from different business organizations of Pakistan. The results reveal that human capital and market orientation separately affect innovation while human capital partially mediates the relationship between market orientation and innovation. Practical and future research implications of the study have also been discussed.