The role of technological and organizational innovation in the relation between market orientation and performance in cultural organizations

Abstract

PurposeThis paper aims to provide evidence of the mediating effect of technological and administrative innovation on the link between market orientation and the economic and social performance of museums.Design/methodology/approachBuilding on extensive literature, a model of the relationships is developed and empirically tested using survey data collected from 276 museums (135 Spanish and 141 French). Data are analyzed through structural equation modeling and/ or path modeling.FindingsIn the present study, evidence is found to support the positive and significant link between market orientation and the economic and social performance of museums. The paper statistically shows that although the linkage between market orientation and performance is significant, what best accounts for enhanced performance is technological and organizational innovation.Practical implicationsThis study has implications for museums aiming to increase their performance and innovativeness. The study suggests that museum managers should include technological and organizational innovation in models of market orientation to enhance the explanations of the economic and social performance. This study suggests the innovation is important mediator.Originality/valueThe paper suggests that museum managers need to consider the impact of technological and administrative innovations on achievement of organizational performance.