Abstract

Many multinational corporations force global customer orientation and firm innovativeness. However, little is known about how or why they benefit from perceived customer orientation and firm innovativeness in one country but not in another. The authors fill this gap by referring to information processing and institutional theories. They contribute to research by analyzing the roles of country development and dimensions of national culture in the direct and indirect effects of perceived customer orientation through firm innovativeness on consumer product purchase intention across 53 countries. The results of multilevel structural equation modeling show different explained variances of the institutions and varying moderations for the differently strong effects of perceived customer orientation and firm innovativeness. Institutional theory strongly complements behavioral theorizing. The findings have direct implications for managers interested in understanding how perceived customer orientation and firm innovativeness interact and attract consumers in different country contexts.

Introduction 

Perceived customer orientation (i.e., perception of a firm’s focus on customers and on satisfying their needs, Dean, 2007; Vaquero Martín, 2021; Walsh et al., 2009) and perceived firm innovativeness (i.e., perception of firm activities that result in novel, creative, and impactful offers for markets, Kunz et al., 2011; Kassemeier et al., 2022; Kim et al., 2015) are important sources of competitive advantage. Consumers consider both in purchase situations; both affect firm performance (Eisingerich and Rubera, 2010, Jean et al., 2017), and firm’s customer orientation is known to reinforce firm innovativeness (Jean et al., 2017, Kibbeling et al., 2013). Multinational corporations (MNCs), such as Zara, acknowledge the effects of perceived customer orientation and innovativeness by referring to consumer insights (Inditex, 2022). However, respective perceptions of an MNC may be valuable for consumer decisions in one country but not in another. Adidas examines differences in consumer perceptions in selected countries to identify consumer-driven opportunities and innovative approaches (Adidas, 2022, pp. 83, 88). However, MNCs can go further, including country differences to exhaust such insights across nations. This study analyzes whether and how national institutions impact the effects of perceived customer orientation and innovativeness on product purchase intentions across 53 countries (the likelihood that consumers will buy products of an MNC in the future, van der Lans et al., 2016). We contribute to research by examining country development and dimensions of national culture as important continuous moderators in the research field.

Conclusions 

This study finds that while country development and two dimensions of national culture strongly explain cross-national effects in perceived customer orientation, the stronger effects of perceived firm innovativeness do not depend on these contexts. We thereby offer a theoretical complement to past research, which has only assumed a role for national institutions. We look forward to further research linking institutions and consumer perceptions of customer orientation and innovativeness.