Market orientation and market strategy profiling: an empirical test of environment‐behaviour‐action coalignment and its performance implications

Abstract

Organizational performance is greatly influenced by employee behaviours and the resulting market orientation that they possess. Market orientation is a behavioural culture that affects strategy formulation and strategy implementation, and how an organization interacts with its environment and adjusts to changes within that context. The relationship between market orientation and performance is robust across several environmental contexts that are characterized by varying degrees of market turbulence, competitive intensity, and products/services introduction rates. This study identifies co‐aligned market orientation and strategy profiles corresponding to unique competitive contexts that represent best practices for an organization seeking to maximize performance in a high technology environment. This relationship becomes dynamic when one considers the assertion that organization culture is synonymous with strategy and the evidence that the external environment affects organizational culture. As a result, the ability to profile ideal orientations will have significant strategic and performance implications for organizations that will contribute to the development of a sustainable competitive advantage.

Citation

Dobni, C.B. and Luffman, G. (2000), "Market orientation and market strategy profiling: an empirical test of environment‐behaviour‐action coalignment and its performance implications", Management Decision, Vol. 38 No. 8, pp. 503-522. https://doi.org/10.1108/00251740010378255