Imbalance between market orientation and innovation capability: An empirical study on Taiwan´s continuing education

Though universities appear to be bureaucratic, inefficient and much less flexible organizations, they now have a tough challenge to manage their new adventure-continuing education (CE). This study aims to explore the relationships among market orientation, innovation capability, and business performance in Taiwanese universities and colleges involving CE. We propose research hypotheses and LISREL model to investigate theses based on 261 respondents from 71 universities and colleges. One finding of this study indicates that innovation capability plays a distorter factor in context of the relationship between market orientation and business performance. Such an inconsistent result reveals an imbalance between market orientation and innovation capability. We also find that these two different aspects of innovation all have direct contributions to business performance whereas administrative innovation strongly affects product innovation. This study finally ends with some managerial implications for management and future research.