Reconceptualizing the elements of market orientation: A process-based view |
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| Institution: | 1. Wagner College, Campus Hall 215, 1 Campus Road, Staten Island, NY 10301, United States;2. Marketing Department, School of Business, Renmin University of China, Mingde Building, Rm. 915, 59 Zhongguancun St., Haidian Dist., Beijing 100872, PR China;3. Grand Valley State University, Seidman College of Business, 3114 Seidman Center, Grand Rapids, MI 49501, United States;4. University of Missouri, Department of Marketing, Robert J. Trulaske, Sr. College of Business, 335 Cornell Hall, Columbia, MO 65211, United States;1. School of Industrial Engineering & Innovation Sciences, Eindhoven University of Technology, P.O. Box 513, CNT0.16, 5600 MB Eindhoven, The Netherlands;2. Tilburg School of Economics and Management, Tilburg University, The Netherlands;3. School of Industrial Engineering & Innovation Sciences, Eindhoven University of Technology, The Netherlands;1. Department of Management, Farmer School of Business, MSC 1077, Miami University, 800 E. High St., Oxford, OH 45056, United States;2. Department of Supply Chain Management, WCOB 475, University of Arkansas, Fayetteville, AR 72701, United States;1. Faculty of Economics, University of Porto, Rua Dr. Roberto Frias, 4200-464 Porto, Portugal;2. Kedge Business School Marseille, Domaine de Luminy, BP 921, 13288 Marseille cedex, France;3. Universidade Europeia, Quinta do Bom Nome, Estrada da Correia, 53, 1500-210 Lisboa, Portugal;4. Advance-CSG, ISEG, University of Lisbon, Portugal |
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| Abstract: | Market Orientation (MO) was originally introduced with a reflective second-order scale, but much recent research has conceptualized MO as a formative second-order construct. However, either the reflective or the formative approach to measuring MO may have issues that obscure relationships between both the individual dimensions and their relationships with other variables. Thus, the current research disaggregates the MO construct into three sub-constructs in an effort to explore relationships between the three dimensions of MO and its implementation process within the firm. The proposed Market Intelligence Implementation Process (MIIP) model suggests both a direct path from intelligence generation to responsiveness and an indirect path through a company-wide focus on dissemination. The process model suggests that firms may select two distinctly different paths to responsiveness when applying market intelligence. Explicating this dual process model allows us to understand how firm characteristics impact the process of MO through the individual elements. If the three sub-constructs do not vary in concert with each other, researchers cannot simply conclude that a firm characteristic (i.e., centralization or international experience) positively or negatively impacts MO's relationship to important marketing variables. The results indicate that for centralized and experienced firms, a high level of intelligence dissemination may actually hinder responsiveness. However, in decentralized and inexperienced firms, high levels of dissemination are linked to increased responsiveness. Using conditional process modeling, our study disaggregates the temporally distinct process of MO to reveal internal relationships among its dimensions. The current research also shows that the mediation of intelligence dissemination on the link between intelligence generation and responsiveness depends on the firm's levels of both centralization and international experience. |
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