Developing strategic orientation in China: antecedents and consequences of market and innovation orientations

Abstract

Do market and innovation orientations matter in transitional economies? Based on a survey of 2754 employees from 180 firms in China, we find that both market and innovation orientations strongly improve employees' job attitudes, such as job satisfaction, organizational commitment, and confidence in their firm's future performance. In addition, a participative organizational culture and senior managers' positive attitudes toward change are beneficial to developing market and innovation orientations. Furthermore, charismatic leadership positively impacts employees' job attitudes and facilitates the effects of market and innovation orientations on employees' job attitudes. The implications for developing strategic orientations in transitional economies are also discussed. © 2004 Elsevier Inc. All rights reserved.