Sohyoun Shin and Kirk Damon Aiken
The purpose of this paper is to shift the research focus from singular investigations of strategic orientations (i.e. learning, technology, market, customer, and competitor) to a…
Abstract
Purpose
The purpose of this paper is to shift the research focus from singular investigations of strategic orientations (i.e. learning, technology, market, customer, and competitor) to a broadened exploration of how various combinations of orientations link to firm performance. Further, the paper reveals the mediating role of marketing capability between strategic orientations and firm performance.
Design/methodology/approach
Mail and e‐mail surveys were received from 198 Korean executives among the nation's Top 500 firms (across various industries). Generally, multiple regression analyses were conducted to test the various hypotheses.
Findings
Data confirm that each strategic orientation has distinct paths through marketing capability (single or multiple, and mediating) that significantly impact firm performance.
Practical implications
Fostering marketing capability, including marketing planning and implementation ability, will have a direct positive impact on firm performance. In addition, companies should understand how differently their cultural resources and orientations affect firm performance.
Originality/value
This paper is the first to argue that a deployment mechanism, marketing capability, is needed between strategic orientations and business performance. The paper further contributes by extending geographic generalizability to Asian countries (since the majority of extant research on organizational orientations and capabilities comes from western countries).
Details
Keywords
Fabian F. Osorio Tinoco, Miguel Hernández-Espallardo and Augusto Rodriguez-Orejuela
The purpose of this paper is to clarify how responsive market orientation (RMO) and proactive market orientation (PMO) create competitive advantage.
Abstract
Purpose
The purpose of this paper is to clarify how responsive market orientation (RMO) and proactive market orientation (PMO) create competitive advantage.
Design/methodology/approach
Nonlinear and interaction effects are tested by applying hierarchical regression analysis to a sample of 272 Colombian manufacturing companies.
Findings
The results show that although market orientation promotes the competitive advantage of a business, both approaches – responsive and proactive – exhibit saturation effects and a positive interaction.
Research limitations/implications
The main limitation of this study is the cross-sectional design and the use of a single source for data collection. It is suggested that future research includes different orientations combined with these two market orientations – responsive and proactive – for achieving competitive advantage. In addition, further studies could replicate this analysis for different environmental conditions.
Originality/value
This paper simultaneously evaluates the nonlinear and complementary effects of RMO and PMO. From a strategic standpoint, it presents an empirical confirmation of the familiarity trap, the failure trap and the positive effects of combining RMO and PMO.