Market Orientation: Antecedents and Consequences

Abstract

This research addresses three questions: (1) Why are some organizations more market-oriented than others? (2) What effect does a market orientation have on employees and business performance? (3) Does the linkage between a market orientation and business performance depend on the environmental context? The findings from two national samples suggest that a market orientation is related to top management emphasis on the orientation, risk aversion of top managers, interdepartmental conflict and connectedness, centralization, and reward system orientation. Furthermore, the findings suggest that a market orientation is related to overall (judgmental) business performance (but not market share), employees' organizational commitment, and esprit de corps. Finally, the linkage between a market orientation and performance appears to be robust across environmental contexts that are characterized by varying degrees of market turbulence, competitive intensity, and technological turbulence.

Cite this paper

Related papers

1. Dynamic capabilities and strategic management1997
2. Toward a knowledge‐based theory of the firm1996
3. Dynamic capabilities: what are they?2000
4. Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology1992
5. Upper Echelons: The Organization as a Reflection of Its Top Managers1984