Market orientation, marketing capabilities and sustainable innovation

Purpose This study aims to observe the association between market orientation (MO), marketing capabilities and sustainable innovation and to determine the contributions of marketing capabilities, sustainable consumption and competitive advantage as mediators. Design/methodology/approach The data for this study were collected by administering a survey, and well-defined scales were used for quantifying the data. Theories propounded by various authors were used to form the theoretical framework of the study while keeping those theories relevant to the Indian context. The study uses structural equation modelling to empirically test proposed hypothesis and research model of the relationships. Findings The results indicated that MO has a positive influence on marketing capabilities, including product development, communication, channel linking and pricing. The study also found, albeit with exceptions, a positive association between marketing capabilities and sustainable innovation. These exceptions were communication capability on technical innovations and channel linking capability on non-technical innovations. In addition, findings reveal that marketing capabilities fully mediate MO to performance link while sustainable consumption partially mediates the relation between sustainable innovation and competitive advantage. Competitive advantage also partially mediates marketing capabilities to performance relationship. Research limitations/implications This study deals with four marketing capabilities only and uses cross-sectional data, instead of longitudinal data, that comprises data of 192 service firms in India. Originality/value The study sets forth empirical evidence for the argument that specific marketing capabilities lead to sustainable innovation. The study further clarifies contributions of marketing capabilities, sustainable consumption and competitive advantage as mediators in the proposed research model.