alexa GAINING COMPETITIVE ADVANTAGE AND ORGANIZATIONAL PERFORMANCE THROUGH CUSTOMER ORIENTATION, INNOVATION DIFFERENTIATION AND MARKET DIFFERENTIATION
ISSN: 2162-6359

International Journal of Economics & Management Sciences
Open Access

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Research Article

GAINING COMPETITIVE ADVANTAGE AND ORGANIZATIONAL PERFORMANCE THROUGH CUSTOMER ORIENTATION, INNOVATION DIFFERENTIATION AND MARKET DIFFERENTIATION

Basheer Abbas Al-alak1, Saeed (M.Z) A. Tarabieh*2

1Professor of Marketing, College of Graduate Studies (COGS), Universiti Tenaga Nasional (UNITEN), Putrajaya Campus, 4300 Selangor, Malaysia, E-mail: [email protected]; [email protected]

2PhD. Candidate in Marketing, College of Graduate Studies (COGS), Universiti Tenaga Nasional (UNITEN), Putrajaya Campus, 4300 Selangor, Malaysia.

*Corresponding Author:
Saeed (M.Z) A. Tarabieh
PhD. Candidate in Marketing
College of Graduate Studies (COGS)
Universiti Tenaga Nasional (UNITEN)
Putrajaya Campus, 4300 Selangor, Malaysia
E-mail: [email protected]
 

Abstract

This paper examines the relationship between customer orientation, innovation differentiation, market differentiation and organizational performance in the banking industry in Jordan. A survey of 16 Jordanian banks provides the basis for the empirical investigation. The relationships between the four latent constructs are examined using structural equation modeling and confirmatory factor analysis. The findings show that customer orientation contributes positively to organizational performance by providing innovation differentiation and market differentiation. Another finding of this study is that the impact of innovation differentiation on organizational performance is greater than market differentiation. In addition, doing both innovation differentiation and market differentiation simultaneously achieves greater competitive advantage that leads to best results in organizational performance. Finally, this paper also discusses the theoretical and managerial implications of the results.

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