Developing a market orientation: An organizational strategy perspective

Abstract

This paper examines the relationships between the degree of market orientation from an organizational strategy perspective and organizational processes, individual attitudes and long run financial performance at the business unit level of analysis. Arguments are made that the degree of market orientation: (1) varies across business units within large scale organizations; (2) is positively related to broader organizational processes including recruiting, training, and compensation; (3) is positively associated with individual attitudes toward their jobs; and (4) is positively related to business unit long run performance. The results of a study of managers from a large, high technology firm indicate support for these hypotheses. These findings have implications for managers attempting to develop and maintain a market orientation within the firm.