Abstract:
In the present era, higher education is considered a booming and
significantly contributing sector to the economy of many coun
tries. Due to the intense competition prevailing in the higher
education sector, higher education institutions need to become
market oriented and innovate in courses, delivery methods and
student support services. Consequently, they could meet increas
ing expectations placed on them for quality of education and
support services. The main aim of this study is to investigate the
influence of both market orientation and its dimensions, on
innovation in higher education institutions. This study also con
sidered the age of the faculty a moderator to these influences.
The sample comprised 270 managers and course cordinators
attached to faculties, schools or units in Sri Lankan higher educa
tion institutions. The surveys were administered for data collec
tion. The study has several contributions to the literature- all the
three dimensions of market orientation, significantly and posi
tively influenced innovation in higher education institutions. The
age of the faculty significantly moderated the influence of both
market orientation and its dimensions (Intelligence Generation
and Responsiveness), on innovation. This study also expand the
focus of theory of six sigma by applying it from market orienta
tion and customer orientation perspectives. Finally, this study has
modified items measuring several constructs to suit the higher
education context which canbeusedbyfuture researchers. From
the findings, several practical implications are given to officials in
higher education institutions for innovating in courses, delivery
methods and support services. The article concludes with many
useful directions for future researchers.