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Market Orientation, Growth Strategy, and Firm Performance: The Moderating Effects of External Connections

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  • Filatotchev, Igor
  • Su, Zhongfeng
  • Bruton, Garry D.

Abstract

This study examines the mediating effect of growth strategy (including market and product expansion strategies) on the linkage of market orientation (MO) to firm performance and the moderating effects of a firm's external connections (including political and business ties) on the relationship between MO and growth strategy. It finds that both market and product expansion strategies are key conduits through which MO improves firm performance. In addition, the relationship between MO and market expansion strategy is positively moderated by political ties but negatively moderated by business ties, while the linkage of MO to product expansion strategy is moderated negatively by political ties but positively by business ties. By combining mediating and moderating effects in a framework that integrates MO, growth strategy, external connections, and firm performance, this study enriches our knowledge on the implications of MO and provides insight into factors that facilitate firm growth.

Suggested Citation

  • Filatotchev, Igor & Su, Zhongfeng & Bruton, Garry D., 2017. "Market Orientation, Growth Strategy, and Firm Performance: The Moderating Effects of External Connections," Management and Organization Review, Cambridge University Press, vol. 13(3), pages 575-601, September.
    • Handle: RePEc:cup:maorev:v:13:y:2017:i:03:p:575-601_00
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    Cited by:

    1. Czinkota, Michael & Khan, Zaheer & Knight, Gary, 2021. "International business and the migrant-owned enterprise," Journal of Business Research, Elsevier, vol. 122(C), pages 657-669.
    2. Gligor, David & Gligor, Nichole & Maloni, Michael, 2019. "The impact of the supplier's market orientation on the customer market orientation-performance relationship," International Journal of Production Economics, Elsevier, vol. 216(C), pages 81-93.
    3. Zheng, Weiting & Ang, Siah Hwee & Singh, Kulwant, 2022. "The interface of market and nonmarket strategies: Political ties and strategic competitive actions," Journal of World Business, Elsevier, vol. 57(4).

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