Effects of innovation and crowdsourcing on market and firm performance

Today outsourcing innovation through external resources is considered as one of the most indispensable components of market orientation. Recent internet technologies allow firms to crowdsource a myriad of new ideas and come up with innovations on various online platforms. Firms as 'innovation integrators' have been capitalizing R&D based internal innovations as well as crowd-based open innovations as the source of new ideas. This study investigates the relationship between market orientation, innovation performance, crowdsourcing and aims to examine their effect, particularly innovation performance, on market and firm performance. Based on the literature review on market orientation, innovation performance and crowdsourcing, a survey was distributed to 42 C-level (CEO, CFO, CMO) executives who are members of Turkish Defense and Aerospace Manufacturers Association (SaSad). Based on the answers provided by the respondents; first, a regression analysis was applied to identify which variables have an impact on market and firm performance, then a hierarchical regression analysis was applied to determine if "Crowdsourcing" strengthens "Innovation Performance" by using IBMM SPSS v.25. Analysis of the respondents demonstrated that while "Crowdsourcing" as a moderator strengthens the "Innovation Performance", it does not have an immediate positive impact on market and firm performance.