[show abstract][hide abstract] ABSTRACT: Market orientation (MO) and entrepreneurial orientation (EO) are correlated, but distinct constructs. MO reflects the degree to which firms' strategic market planning is driven by customer and competitor intelligence. Entrepreneurial orientation reflects the degree to which firms' growth objectives are driven by the identification and exploitation of untapped market opportunities. When modeled separately, research has reported direct effects of both constructs on firm profitability. When modeled simultaneously, however, the direct effect of EO has disappeared. This has led some scholars to postulate that EO is an antecedent of MO. The results of this study contradict this presumption and suggest that EO and MO complement one another, at least in small businesses, to boost profitability. The major difference between this and previous studies is the inclusion of innovation success, which captures an indirect effect of EO on profitability. At least in small firms, the results suggest that EO complements MO by instilling an opportunistic culture that impacts the quality and quantity of firms' innovations.
Journal of Small Business Management 01/2009; 47(4):443-464. · 1.39 Impact Factor
[show abstract][hide abstract] ABSTRACT: There appears to be widespread agreement that optimal new product development programs require a balance between customer-led and lead-the-customer innovation practices. The former is associated with adaptive learning inspired incremental innovation, whereas the latter is associated with generative-learning-inspired radical innovation. There is debate, however, as to whether a strong market orientation can facilitate this balance. Some believe that a strong market orientation causes firms to overemphasize customer-led incremental innovations. Others believe that a strong market orientation can facilitate this balance but assert that traditional measures of market orientation only capture the types of behaviors associated with customer-led incremental innovations. This latter concern has led some to abandon the single-construct operationalization of market orientation and to introduce two constructs—responsive and proactive market orientation—into the literature. The purpose of this research is to address these developments. The study makes use of a national sample of marketing executives and employs a cross-sectional survey design. Measures used are market orientation, radical and incremental innovation priority, generative and adaptive learning priority, and new product success. Confirmatory factor analyses and structural equations models are employed to develop measures and to test hypotheses. The study's results reaffirm the position that a strong market orientation helps facilitate a balance between incremental and radical innovation by shifting firms' innovation priority more toward radical innovation activities. It also suggests that the abandonment of traditional conceptualizations and measures of market orientation are premature.
[show abstract][hide abstract] ABSTRACT: The extant literature shows that the strength of the market orientation–performance relationship decays as the terminal measure of performance shifts from new product success to profitability to market share. As Day (1999) concluded, a broader nomological inquiry is needed to more fully understand the nature and limits of market orientation's effects. This suggests that a broader nomological inquiry is needed to fully understand the nature and limits of market orientation's effects.Utilizing a national sample of marketing executives, the present study's purpose is to build a fuller understanding of the effects of market orientation on firm performance. Its structural equations model includes measures of new product success, profitability, and market share.The research reinforces a strong positive relationship between market orientation and new product success. The expanded nomological network under study, however, implies barriers to market orientation's effectiveness. First, market-orientation-inspired increases in the priority firms place on “breakthrough” learning without commensurate increases in the priority placed on “breakthrough” innovation capabilities can boomerang and negatively impact new product success. Second, market-orientation-inspired new product development programs that are unable to increase market share can negatively impact profitability. These gatekeepers to the success of market orientation underscore the need for firms to coordinate a strong market orientation with resources and capabilities that increase the effectiveness of the marketing function. Without such coordination, the positive effect of market orientation on new product success may be limited to incremental innovations, and the overall effect of successful new products on profitability may be limited.
[show abstract][hide abstract] ABSTRACT: Recent studies on marketing and the natural environment have called for research that links environmental marketing strategies
to the performance of the firm. This research operationalizes the enviropreneurial marketing (EM) construct and examines its
relationship with firm performance. It is the first empirical research to operationalize the EM construct. The new scale,
albeit a first attempt, demonstrates encouraging psychometric properties. According to the resource-based view of the firm,
a resource such as EM should directly influence firms’ capabilities (e.g., new product development success) but not competitive
advantage (e.g., change in market share). A nationwide study of top-level marketing managers supports this perspective. In
addition, although market turbulence also affects new product development success, it does not have an impact on EM. This
suggests that EM formation is driven by internal rather than external forces.
Journal of the Academy of Marketing Science 01/2005; 33(4):461-475. · 2.67 Impact Factor
[show abstract][hide abstract] ABSTRACT: Many scholars now agree that market orientation is necessary, but not sufficient to facilitate the type of innovation that breeds long-term competitive advantage (cf. Dickson, 1996). In addition to a strong market orientation, a firm must also be able to institutionalize higher order learning processes, the type of learning that enables radical innovation. Recent research (cf. Baker and Sinkula, 1999) has empirically established a synergistic effect of market orientation and learning orientation on organizational performance. This paper attempts to add to the literature by offering a more complete theoretical explanation of how these two constructs interact to affect product innovation capabilities. Three types of marketing firms are identified. Phase I firms learn primarily through modeling and are typically limited to manager-driven incremental innovation. Phase II firms learn primarily through adaptive learning and are typically limited to market-driven incremental innovation. Phase III firms engage in generative learning and pursue ongoing radical innovation. We propose that only Phase III firms are capable of maintaining competitive advantage in dynamic market environments.
Journal of Market-Focused Management 01/2002; 5(1):5-23.
[show abstract][hide abstract] ABSTRACT: Information, whether it is acquired from an external source or generated internally, is subjected to perceptual filters made up of the organization’s norms, procedures, and beliefs that influence what information the organization attends to and ultimately accepts. This paper examines the role which these organizational filters play in unlearning; viewed here as a specialized form of organizational learning. Unlearning is defined as the “process by which firms eliminate old logics and make room for new ones” by Prahalad and Bettis. The author argues that firms which engage in unlearning activities are better able to cast aside established routines in order to replace them with ones that ultimately result in superior value to their customers.
Journal of Business & Industrial Marketing 01/2002; 17(4):253-269. · 0.69 Impact Factor
[show abstract][hide abstract] ABSTRACT: Recent studies have demonstrated effects of learning orientation or market orientation on innovation-driven organizational performance. While these studies have enhanced our understanding of innovation processes in the firm, they have been unable to determine the relative contribution of learning orientation and market orientation to innovation. The integration of these two fundamental strategic orientations in this research enables such an assessment. The model in this research also measures the degree to which market orientation and learning orientation influence organizational performance, independent of their effect on product innovation. The most notable finding is the potential preeminence of learning orientation over market orientation. The implications are of critical importance to marketers because they provide insights into the type of organizational culture that is associated with high levels of performance.
Journal of Market-Focused Management 01/1999; 4(4):295-308.
[show abstract][hide abstract] ABSTRACT: Although a large body of research theoretically asserts a positive relationship between market orientation and organizational
performance, fewer empirical studies demonstrate it using multiple and varied organizational performance measures. Additionally,
a series of recent studies have theoretically proposed, but not empirically demonstrated, that a firm’s learning orientation
is likely to indirectly affect organizational performance by improving the quality of its market-oriented behaviors and directly
influence organizational performance by facilitating the type of generative learning that leads to innovations in products,
procedures, and systems. This empirical study supports all of these specific contentions and the more global notion that higher
order learning processes may be critical in creating a sustainable competitive advantage in the firm.
Journal of the Academy of Marketing Science 01/1999; 27(4):411-427. · 2.67 Impact Factor
[show abstract][hide abstract] ABSTRACT: This article reports results from a portion of a longitudinal study of exporting firms where the relationships among managers' beliefs about exporting, their export intentions, subsequent exporting behavior, and further future exporting intentions are examined. A set of small and medium-sized New England firms, primarily industrial product manufacturers, were queried in 1988 and again in late 1991. Respondents to the initial study included 78% of the 206 firms in the population, whereas 102 of 182 firms responded to the follow-up study, yielding a response rate of 56%. Of these, 77 firms had participated in the initial study, and it is these firms which provide the longitudinal data examined here.In general, the results indicate a relationship between export intentions and managers' beliefs about the value of exporting to their own firms, between export intentions and current performance, between export intentions and subsequent export intentions, between subsequent export intentions and performance in the previous period, and between export intentions and firm size. However, no relationships could be shown between export intention and actual subsequent behavior or between export intention and subsequent export performance. Overall, data support the thesis that learning affects results, whereas results, in turn, spur further learning.
[show abstract][hide abstract] ABSTRACT: A paucity of research has been conducted on the degree to which organizations utilize external market research suppliers. Yet one of the primary tasks of the marketing and research manager is to balance the amount of market research that is done internally versus externally.This study, unlike those that have focused on the degree to which managers use the output of market research, examines how organizations accomplish the research project. In-house market research departments (or client organizations) are sampled and questioned as to their utilization of external research suppliers. Diffusion theory (Brown, 1981; Rogers, 1962, 1983), with particular emphasis on the concept of continuous innovation, is used to explain the utilization of external market research suppliers.
[show abstract][hide abstract] ABSTRACT: Certain types of organizations acquire more information than they use. Research has shown that centralization impedes the use of market research. Yet, no investigation has been done regarding the way information is acquired in centralized organizations. This study concludes that centralization promotes the usage of external vendors for the acquisition of market research information. We suggest that the way information is acquired will affect the way it is used and that intended uses will affect the way information is acquired. Organizational structure is a significant factor in determining information acquisition and usage behavior of the firm. Knowledge of these relationships will help managers to design, structure, and manage the market research function in the organization.
Journal of Business Research. 02/1988; 16(4):337-349.
[show abstract][hide abstract] ABSTRACT: Recently, the technology associated with Universal Product Code (UPC) scanners has given rise to the development of a number">Recently, the technology associated with Universal Product Code (UPC) scanners has given rise to the development of a number
of research middlemen who accumulate, store, and analyze data for an as yet undescribed clientelle. This is a study which of research middlemen who accumulate, store, and analyze data for an as yet undescribed clientelle. This is a study which
describes these end-users of UPC derived data and scanner based research from two standpoints. The first takes an organizational describes these end-users of UPC derived data and scanner based research from two standpoints. The first takes an organizational
demographical approach in profiling the most likely adopter. The second explores user applications of scanner based research. demographical approach in profiling the most likely adopter. The second explores user applications of scanner based research.
A national sample of directors of marketing research is utilized to develop the organizational profile of the user of scanner A national sample of directors of marketing research is utilized to develop the organizational profile of the user of scanner
based research. Findings show that general usage is (but specific usage applications are not) related to the demographics based research. Findings show that general usage is (but specific usage applications are not) related to the demographics
of the organization. of the organization.
Journal of the Academy of Marketing Science 02/1986; 14(1):63-71. · 2.67 Impact Factor
[show abstract][hide abstract] ABSTRACT: The authors review the concept of organizational learning and present a broad conceptual framework for its modeling. Within
this framework, one specific process for market-based organizational learning is postulated. An empirical test of this model
leads the authors to conclude that a more positive learning orientation (a value-based construct) will directly result in
increased market information generation and dissemination (knowledge-based constructs), which, in turn, directly affects the
degree to which an organization makes changes in its marketing strategies (a behavioral construct). Managerial implications
Journal of the Academy of Marketing Science 25(4):305-318. · 2.67 Impact Factor