The Effect of Market Orientation and Entrepreneurship Orientation on Innovation: the Case of Auto Parts Manufacturers

Continuous environmental changes threaten the maintenance of organizations. Thus, in order to survive, any enterprise needs an appropriate strategic approach that can take advantage of the environmental opportunity. Although marketing and strategic management researchers have shown the relationship between marketing and entrepreneurship in the organizational operation of different companies, the effect of such variables on the innovation of products are considered less in Iran’s business enterprises. Considering the importance of market and entrepreneurship orientation approaches for maintenance of organizations and confrontation with competitors, the present research, using data obtained from enterprises producing auto parts in Tehran province, plans to investigate the effect of such variables on the innovation of new products. Result of current research show that although support of managers is significant for innovation of the product in entrepreneurship and market orientation enterprises, the existence of difference in other variables such as the quality of the product, marketing synergy. and expertise in supplying the new product to the market is not significant between the aforementioned enterprises. The research findings, in addition to having relationship with the existent literature in the investigated area, will provide managers with appropriate information for adoption of a strategic balanced approach.