Does market orientation matter?: a test of the relationship between positional advantage and performance

A recent series of articles in the Strategic Management Journal has discussed the potential value of an organization developing a market orientation in its quest to achieve success. We posit that market orientation can enhance success, but that its potential value should not be considered in isolati...

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Bibliographic Details
Published in:Strategic management journal 2001-09, Vol.22 (9), p.899-906
Main Authors: Hult, G. Tomas M., Ketchen Jr, David J.
Format: Article
Language:English
Subjects:
Applied sciences
Business innovation
Business management
Business structures
Competition
Competitive advantage
Corporate strategies
Customers
Disruptive innovation
Economic performance
Entrepreneurs
Entrepreneurship
Exact sciences and technology
Factor analysis
Firm modelling
Hypotheses
Innovations
Management
Management theory
Market
Market orientation
Market planning
Marketing
Multinational corporations
Multinational enterprises
Operational research and scientific management
Operational research. Management science
Organizational learning
organizational performance
Percentage change
Product innovation
Qualitative research
Research Notes and Commentaries
resource-based view
Statistical discrepancies
Strategic business units
Strategic management
Strategic planning
Studies
Success
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Summary:A recent series of articles in the Strategic Management Journal has discussed the potential value of an organization developing a market orientation in its quest to achieve success. We posit that market orientation can enhance success, but that its potential value should not be considered in isolation. Specifically, we draw on the resource-based view of the firm to suggest that four capabilities-market orientation, entrepreneurship, innovativeness, and organizational learning-each contribute to the creation of positional advantages for some firms. The data used are drawn from 181 large multinational corporations (MNC). The results indicate that positional advantages arising from the confluence of market orientation, entrepreneurship, innovativeness, and organizational learning have a positive effect on MNC performance (five-year average change in ROI, income, and stock price). Overall, the results support the contention that market orientation can enhance success, albeit within the context of other important phenomena.
ISSN:0143-2095
1097-0266
DOI:10.1002/smj.197