The effect of market orientation and technology orientation on industry 4.0 technologies and market performance: Role of innovation capability

Abstract

Today, businesses are facing increasing demands from the customers and strong competitive pressure. Firms must continuously deliver value and satisfy customer demands to survive and maintain growth in the market. In this regard, organizations are implementing Industry 4.0 (I4) technologies to satisfy customer requirements, deliver value and sustain in the market. This study examines how strategic orientations (market and technology orientation) influence firms to adopt I4 technologies, and how I4 technologies can help to deliver customer value and improve firm performance. To this end, the study posits that adoption of I4 technologies develops innovation capability, which can lead to desired performance outcomes (innovation and market performance). The proposed model is examined using survey responses from 154 US industrial firms. Findings show that market and technology orientation have significant effect on adoption of I4 technologies, and partial mediation effect of technology orientation between market orientation and adoption of I4 technologies. Further, I4 technologies help to build innovation capability, which improves performance outcomes. The study provides implications for managers in industrial firms with regard to understanding the key facets of I4 technologies.