Market Dynamism and Firm Performance Relation: The Mediating Effects of Positive Environment Conditions and Firm Innovativeness

Abstract

There has been a great interest in terms of environment and its effects in the organization. Apart from environmental conditions, market dynamism is emphasized as another important factor that affects firm performance. Organizations have to compete to survive in a changing environment. In our study, we expected to find out significant relationship through dependent variables (operational performance and market performance) and independent variable as market dynamism. Another goal of our study is to reveal the mediation effects of positive environment conditions and firm innovativeness to firm performance. It should be noted that, our study is based on a survey distributed to 327 people who work in companies in Turkey and analysis results represented the mediating effects of positive environment conditions on firm performance. The obtained data from the questionnaires are analysed through the SPSS statistical packaged software. Further, we compared relationship among the factor analysis, reliability, correlations and regressions. Consequently, our hypotheses are supported and positively related.