Year: 1998
Type: dissertation
Abstract: This research is designed to accomplish three goals. The first goal is to revisit the\nmarket orientation construct in order to define the different facets of it. A review of the market\norientation literature is made to assess and synthesize the stock of accumulated knowledge\nregarding the market orientation construct.\nThe second goal of the research is to develop a theory of the effects ofmarket\norientation. Using the literature concerning resource-based theory and organizationallearning\nfour learning capabilities of market orientation are identified. These are market orientation\ninformation system, market orientation domainwidth, market orientation means alteration, and\nmarket orientation tacitness. They are hypothesized to have a positive impact on product\nadaption. Product adaption is expected to affect relative price (price premium), sales growth,\nand profitability.\nA third goal of the research is to investigate the differences between the effects of\nmarket orientation for firms with a differentiation strategy emphasis in contrast to those with\nan overall cost leadership emphasis. It is argued that the impact of the four market orientation\nlearning capabilities is greater for firms with a differentiation strategy emphasis.\nThe test of the model is done with data from the Norwegian hotel industry. The sample\ncontains 372 cases. Both the measurement and the structural model achieve satisfactory fit to\nthe data. Three out of four hypotheses concerning the impact of market orientation learning\ncapabilities on product adaption are supported. The moderating effect of business strategy on\nmarket orientation learning capabilities' impact on product adaption are supported for two out\nof four hypotheses. The indirect effects of market orientation receives support for four out of\nfive hypotheses.\nFinally, in view of the observed results the contribution ofthis research is discussed in\nthe concluding part of the dissertation.
Author: Kåre Sandvik
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
Funder: Texas Tech University
OpenAlex ID: W2465755527