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What is the Predictive Power of Market Orientation?

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  • Langerak, F.

Abstract

The majority of studies on market orientation claim that compelling evidence exists that market orientation has a positive effect on business performance. This study takes a closer look at forty studies that have addressed the relationship between market orientation and business performance in the past thirteen years. The results show that there is no unequivocal evidence as to if and when market orientation has a positive impact on business performance. There is however some unequivocal proof, albeit limited, on how market orientation influences business performance. These findings are unsettling for academics and managers because market orientation is the foundation of marketing strategy.

Suggested Citation

  • Langerak, F., 2002. "What is the Predictive Power of Market Orientation?," ERIM Report Series Research in Management ERS-2002-88-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:235
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    File URL: https://repub.eur.nl/pub/235/erimrs20021018160627.pdf
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    References listed on IDEAS

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    1. Slater, Stanley F. & Narver, John C., 2000. "The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication," Journal of Business Research, Elsevier, vol. 48(1), pages 69-73, April.
    2. Caruana, Albert & Pitt, Leyland & Berthon, Pierre, 1999. "Excellence-Market Orientation Link: Some Consequences for Service Firms," Journal of Business Research, Elsevier, vol. 44(1), pages 5-15, January.
    3. Subramanian, Ram & Gopalakrishna, Pradeep, 2001. "The market orientation-performance relationship in the context of a developing economy: An empirical analysis," Journal of Business Research, Elsevier, vol. 53(1), pages 1-13, July.
    4. Harris, Lloyd C. & Ogbonna, Emmanuel, 2001. "Strategic human resource management, market orientation, and organizational performance," Journal of Business Research, Elsevier, vol. 51(2), pages 157-166, February.
    5. Pelham, Alfred M., 1999. "Influence of Environment, Strategy, and Market Orientation on Performance in Small Manufacturing Firms," Journal of Business Research, Elsevier, vol. 45(1), pages 33-46, May.
    6. Bhuian, Shahid N., 1998. "An Empirical Examination of Market Orientation in Saudi Arabian Manufacturing Companies," Journal of Business Research, Elsevier, vol. 43(1), pages 13-25, September.
    7. Selnes, Fred & Jaworski, Bernard J. & Kohli, Ajay K., 1996. "Market orientation in United States and Scandinavian companies. A cross-cultural study," Scandinavian Journal of Management, Elsevier, vol. 12(2), pages 139-157, June.
    8. Lloyd C. Harris, 2001. "Market Orientation and Performance: Objective and Subjective Empirical Evidence from UK Companies," Journal of Management Studies, Wiley Blackwell, vol. 38(1), pages 17-43, January.
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    Cited by:

    1. Rodoula H. Tsiotsou, 2008. "Delineating the effect of market orientation on services performance: a component-wise approach," The Service Industries Journal, Taylor & Francis Journals, vol. 30(3), pages 375-403, April.

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    More about this item

    Keywords

    business performance; market orientation; predictive validity;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

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