Market orientation and new product performance: The mediating role of product advantage

This study examines the relationship between market orientation and new product performance in Malaysian property industry. The study also investigates whether the mediating factor of product advantage strengthens the relationship between market orientation and new product performance. 88 new products from 22 property companies (14.87%) out of 148 companies in Sabah Malaysia participated in the study. The findings show that market orientation directly influenced new product performance in the property industry while the mediating factor of product advantage proves to strengthen the relationship between market orientation and new product performance. This study has highlighted practically the importance of market preferences in introducing a new project or product. To literature, the study has supported previous studies on new product performance especially in developing countries such as Malaysia. Managerial implications are also discussed.   Key words: Market orientation, product advantage, new product performance, property industry