The Influence of Innovation Strategy, Quality Management Practices and Market Orientation on Organizational Performance of Manufacturing Firms in Region XII, Philippines


In recent years, the issues faced by manufacturing firms worldwide have been multifaceted due to changes in customer behavior, rigid competition, system failures, poor product design, delays in shipment, and lack of qualified and engaged workers, resulting in poor organizational performance (Ngambi & Nkemkiafu, 2015). Faced with these challenges, most businesses are constantly finding ways to improve products and service quality to attain competitive position and improve organizational performance (Ebrahimi, Moosavi, & Chirani, 2016). Consequently, this study aims to determine the influence of innovation strategy, quality management practices, and market orientation on organizational performance. Data were sourced among 13 manufacturing firms in Region XII with 400 employees holding managerial and supervisory level positions as respondents. In addition, this study employed quantitative research design utilizing multiple regression analysis to determine the combined influence of the independent variables to organizational performance. Findings revealed that the levels of innovation strategy, quality management practices, market orientation, and organizational performance were all high. Essentially, innovation strategy, quality management practices, and market orientation exhibited significant influence on organizational performance of manufacturing firms. Moreover, the best predictor that significantly contributed to the variations of organizational performance is market orientation followed by quality management practices and the lowest was innovation strategy.