Market orientation and marketing innovation in Latin American economies: the moderator role of KIBS firms and realised absorptive capacity

This study explores the influence of market orientation (MO) on marketing innovation (MI) in Latin American economies, with specific focus on the moderating role of knowledge intensive business services (KIBS) firms and realised absorptive capacity (RACAP). Using a balanced panel dataset of 2,790 observations from 1,350 Chilean companies, generalised estimating regressions are used to test our hypotheses. The results find that MO affects MI positively and significantly, supporting similar studies in developed economies. In addition, the findings recognise the moderating role of KIBS firms, confirming that technological firms can trigger the relationship between MO and innovation in terms of marketing mix. Importantly, results do not find that realised absorptive capacity plays any moderating role in this relationship; this finding may be explained by over-searching, because processing new information from market orientation could be time-consuming, expensive, and difficult in firms from emerging economies. These findings underscore the importance of MO as a driver of marketing innovation and highlight the strategic relevance of KIBS firms in fostering innovation in regions with stagnant productivity.