The capabilities and performance advantages of market‐driven firms

Abstract

Although progress has been made in understanding market‐driven businesses from a theoretical perspective, relatively few empirical studies have addressed the capabilities needed to become market‐driven and the performance advantages accruing to firms possessing these capabilities. One of the barriers faced has been in defining what is meant by the term “market‐driven”. Develops a multi‐dimensional measure useful for assessing the degree to which a firm is market‐driven. Presents evidence that market‐driven business units developed higher levels of six vital marketing capabilities (in the areas of market research, pricing, product development, channels, promotion, and market management) than their less market‐driven rivals and significantly outperformed these rival business units on four measures of organizational performance.

Tracing customer orientation and marketing capabilities through retailers’ websites: A strategic approach to internet marketing

“…Capabilities perspectives maintain that customer orientation creates superior capabilities, improves their processes and subsequently leads to differential advantage. 28, 29 Day 28 supports that customer orientation infl uences a fi rm ' s market capabilities and specifi cally, market sensing, and customer linking. Indeed, Vorhies et al 29 provide empirical fi ndings where customer orientation is positively related to marketing capabilities such as market research, product development, promotion, marketing management and others.…”

“…28, 29 Day 28 supports that customer orientation infl uences a fi rm ' s market capabilities and specifi cally, market sensing, and customer linking. Indeed, Vorhies et al 29 provide empirical fi ndings where customer orientation is positively related to marketing capabilities such as market research, product development, promotion, marketing management and others. A recent study by Tsiotsou 30 reports that customeroriented services fi rms develop marketing capabilities such as service quality, service variety, customers ' service, marketing support, technology usage and product promotion.…”

“…By adopting a customer-oriented strategy on their fi rm ' s website, retail managers will be able to develop interactive communications with their customers, gather valuable information about them, track their most profi table customers and products, disseminate all this knowledge throughout their fi rm, develop offerings with added customer value and build profi table customer relationships. 6,9,25,29,30,57 Managerially speaking, retailers need to realize that the online environment requires a customer-focused approach to become more effi cient and effective in meeting customer needs and remaining competitive. Because websites ' orientation affects customer behavior, 6 we advise retail managers to regularly measure customers ' perceptions about the degree of customer orientation as refl ected on their websites.…”

An Analysis of the Factors That Enfluences Success of ICT Project Management

“…The increasing use of ICT with the adoption of a business culture that is developed around such and oriented to the market has increased the encouragement for development of a new organizational, productive and strategic management models (Song et al, 1997). This plays a contributory role in the establishment of an increase in flexibility within organizational structures, an enhancement efficiency and effectiveness in the productive processes and strategic models that are geared towards the generation and adoption of information and knowledge (Grönroos, 2000;Tzokas and Saren, 1997;Vorhies et al, 1999).…”

“…On that account, there have been experiments of organizational culture resulting in key changes in the form of organizational values, missions and visions, and the strategic objectives of the organization behind modified to meet the integration of ICT as part of the organizational design (Dyer and Nebeoka, 2000;Vorhies et al, 1999).…”