THE ROLE OF LOGISTICS IN MARKET ORIENTATION

Abstract

In today's increasingly competitive environment, survival depends on two key aspects of being market‐oriented ‐ understanding the external environment and executing decisions based on that understanding. Logistics personnel are uniquely positioned to play a key role in creating and maintaining a market‐oriented organization as they are progressively gaining more responsibilities in integrating cross‐functional processes and implementing supply chain strategies. This paper explores how logisticians participate in market orientation behaviors and how a market‐oriented logistics function impacts logistics and business performance. Based on a qualitative field research study involving in‐depth interviews with seventeen logistics personnel that draws and builds upon the logistics, market orientation, knowledge management, organizational behavior, information processing, and strategic management literatures, a theoretical model of logistics market orientation and its effect on logistics and business performance is developed and propositions are presented. Findings highlight logistics' central role in generating, disseminating, reaching a shared interpretation of, and responding to market intelligence.