Profitability in market‐oriented SMEs: does product innovation matter?

A significant body of research has focused on the conceptualization of market orientation showing evidence of a positive relationship between market orientation and business performance. However, little attention has been drawn to how innovation could affect this link. Keeping track of limited research on this issue, this study attempts to empirically investigate the moderating effect of product innovation, if any, on the market orientation – profitability link in SMEs. Drawing upon data collected from the food industry in Greece, the findings suggest that product innovation is partially tied to this relationship. Apart from providing some new evidence, the results lead to managerial implications and reveal considerable scope for further research.