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Market orientation − firm performance link in a dynamic environment: looking inside the black box

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  • Rahul Kumar Sett

    (International University of Japan)

Abstract

Our understanding of how market orientation can sustain superior firm performance in a rapidly changing environment is still evolving. This paper presents a model that explains the phenomenon by viewing market orientation as a firm-level dynamic capability that comprises three component capacities: to sense opportunities and threats; to seize opportunities and/or guard against threats; and to reconfigure firm resources in sync with environmental changes. These three capacities represent the three dimensions of market orientation. The nature of these capacities and the organizational processes that undergird them are explicated. It is argued that the capacities of sensing, seizing, and resource reconfiguration can help a market oriented firm to advantageously exploit environmental uncertainties and thereby sustain superior performance. Direction of future research and managerial implications are discussed.

Suggested Citation

  • Rahul Kumar Sett, 2018. "Market orientation − firm performance link in a dynamic environment: looking inside the black box," AMS Review, Springer;Academy of Marketing Science, vol. 8(3), pages 163-179, December.
    • Handle: RePEc:spr:amsrev:v:8:y:2018:i:3:d:10.1007_s13162-017-0099-2
    DOI: 10.1007/s13162-017-0099-2
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    References listed on IDEAS

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    Cited by:

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    2. Johannes Habel & Sascha Alavi & Nicolas Heinitz, 2023. "A theory of predictive sales analytics adoption," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 34-54, June.
    3. Abbie Griffin & Gloria Barczak, 2020. "Effective reviewing for conceptual journal submissions," AMS Review, Springer;Academy of Marketing Science, vol. 10(1), pages 36-48, June.

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