Market orientation and performance: industrial supplier and customer perspectives

Abstract

Purpose This paper aims to contribute industrial marketing literature by examining the relationship between market orientation and performance based on multiple perspectives and measures. Although the relationship between market orientation and firm performance has been examined in prior research a gap in the literature exists, as this relationship has not been examined from separate perspectives of managers, salespersons and customers. In addition to this gap in the literature, a further gap exists as these multiple assessments of market orientation have not been examined relative to both subjective and objectives measures of industrial firm performance. Design/methodology/approach The research is based on data obtained from 111 sales branches of a Fortune 500 industrial supplier. Findings The results indicate that managers, salespersons and customers all indicate a positive relationship between market orientation and perceived performance. Market orientation and actual branch performance were not related when assessed by any of the three respondent groups. Only salespersons were able to significantly relate perceived firm performance to actual performance. Research limitations/implications These findings add a new dimensions to the existing stream of literature on the industrial marketing orientation and performance relationship. Originality/value These findings add new dimensions to the existing stream of literature on the industrial marketing orientation and performance relationship.

The impact of the interaction between an entrepreneurial marketing orientation and coopetition on business performance

“…Linking with the resource-based view, a market orientation features under the VRIN framework, whereby, it can be leveraged as a set of resources and capabilities that serve the purpose of satisfying the wants and needs of customers (as per Hunt and Morgan, 1995). This helps explain why existing research has uncovered that a market orientation is likely to lead to higher-levels of company performance if implemented effectively (Slater and Narver, 1994;Hodgkinson et al, 2012;Powers et al, 2020). This can be attributed to a market orientation helping decision-makers to acquire information about mechanisms to satisfy their customers' wants and needs; also, staying ahead of competitors (Hult and Ketchen Jr., 2001).…”

The bidirectional complementarity between market orientation and launch proficiency affecting new product performance

“…Arguably, the research contributes to new empirical evidence for dynamic capabilities theory, proposing that to maintain the advantageous value of knowledge-based resources in rapidly changing market environments, using complementary market-related deployment capabilities is indispensable (Morgan et al, 2009;Schweiger et al, 2019;Wilden et al, 2016;Wilden et al, 2019). (Protogerou et al, 2011;Wilden and Gudergan, 2015). Moreover, empirical scholarship grounded in the dynamic capability view is still in its infancy and needs further progress (Barreto, 2010;Giudici and Reinmoeller, 2012;Wilden et al, 2016;Wilden et al, 2019).…”

Development of market-oriented strategies through cross-functional integration in the context of the food and beverage industry

“…Moreover, there are recent studies that inquire about the influence of MO adopted by suppliers and other supply chain members on the success of focal companies' MO. This latter research stream may indicate that, in order to pursuit MO success, the company needs to seek partners in its supply chain that agree on coordinating efforts towards the generation of value to their end costumers (Gligor et al, 2019;Powers et al, 2020;Tajeddini and Ratten, 2020). Gupta et al, (2019) reinforce the importance of inquiry mediators and practical forms of reaching MO through different sets of learning procedures and organizational structures.…”

“…Studies on the influence of MO on organizational performance are mainly focused on European or US organizations, and there is a gap in international studies (Auh and Merlo, 2012;Powers et al, 2020). In the context of Latin America, which brings together emerging countries, studies on MO focus on validating the scales proposed by Narver and Slater (1990) and Kohli and Jaworski (1990) in, for example: Brazil (Perin and Sampaio, 2004), Peru (Spillan, Li, Totten, and Mayolo, 2009), Chile (Olavarrieta and Friedmann, 2008), Argentina and Paraguay (Olsen and Olsen, 2004).…”

“…Several authors investigate impacts of MO initiatives, such as cross-functional integration, on company and supply chain performance. Therefore, this construct may be important to understand results related to strategic and practical efforts related to MO(Gligor et al, 2019;Powers et al, 2020;Tajeddini and Ratten, 2020) First of all, it is important to clarify that this paper is derived from a project that received a relevant research grant from a Brazilian agency (FAPEMIG) and also from OEA. A preliminary and exploratory part of the results of this project is available in Murillo-Oviedo et al, (2019).However, the results shown by Murillo-Oviedo et al, (2019) are very exploratory.…”