Market-Oriented Management: A Systems-Based Perspective

Abstract

Market orientation has received substantial academic and practitioner interest over the last decade. However, previous research has not addressed the issue how a company's management systems can be designed in a market-oriented way. Starting from a systems-based perspective of management, the authors develop and validate a scale measuring the extent of market orientation of a business organization's management systems including the organization system, the information system, the planning system, the controlling system, and the human resource management system. Empirical results reveal a substantial positive impact of market-oriented management on market performance which in turn leads to financial performance.