Effects of Market Orientation and Breakthrough Innovation on Organizational Performance of International Enterprises

In the economic growth process when China joined in WTO, internationalized operation has become an inevitable issue. Under the new normal economic condition, including the cut offtariffs on imported goods, businesses in China have realized the importance of enhancing the overall brand image, quality of products and services, and the international compatibility. Businesses of China need to develop creative and high-value-added products, and shall be able to rapidly change to satisfy market requirements to distinguish themselves from other products. It is the way of creating a new pattern of upgrading. It is the market-orientated development that is a primary condition for enterprises to adapt to the rapidly changing environment, keeping growth and attracting customers, acquiring competitive advantages, and creating excellent value for customers. It reveals the fact that in the future, businesses must change the focus from product to market needs. It is the marketorientation which could generate the competitive strength to resist competitors. The research involves in total 45 international enterprises, which are distributed with the questionnaires. There are totally 124 and 107 copies of questionnaires retrieved from manufacturing industry and service industry, with valid retrieval rates of 54% and 46%, respectively. The research results show that: 1. there is positive effect of market orientation on breakthrough innovation, 2. there is positive effect of breakthrough innovation on organizational performance, and 3. there is positive effect of market orientation on organizational performance. Based upon the results, some suggestions are proposed in this study, expecting to help international enterprises develop market orientation, enhance breakthrough innovation, and improve organizational performance.