The role of a firm's strategic orientation dimensions in determining market orientation

a r t i c l e i n f o Little is known about how various strategic orientation dimensions determine market orientation. The authors identify four key dimensions of a firm's strategic orientation as critical antecedents to market orientation: the firm's aggressiveness, its future orientation, the extent of marketing formalization, and risk proclivity. Moderating effects of two environmental forces, competitive intensity and technology turbulence, are also considered in light of their relationship with various dimensions of strategic orientation and market orientation. Using a survey with firms spanning multiple industries, the proposed effects are tested with latent class analysis with multiple regimes. The results, based on an optimal two-regime solution, show that that although market orientation is significantly impacted by these strategic orientation dimensions, the pattern of influence differs based on a firm's membership in one of two regimes. Market orientation has been, and will no doubt continue to be, central to a firm's ability to compete and garner superior rewards in business markets as well as consumer markets. Whether cast as a culture focused on understanding and satisfying customer needs (e.g., Slater & Narver, 1994) or as the support mechanism for collecting, disseminating, and responding to market intelligence on customer needs (e.g., Kohli & Jaworski, 1990), the study and understanding of market orientation have been substantial and far reaching. To date, market orientation has been the focus of hundreds of studies, excellent meta-analyses, and that highlight findings emerging from the body of works. The extant literature informs extensively on the outcomes of market orientation. Although some controversy exists regarding its influence in certain situations, evidence suggests that market orientation generates benefits in various direct and indirect patterns involving for example, innovativeness, customer loyalty, product quality, and ultimately firm market orientation, though also informative, is substantially less expansive ; for instance, little is known about key drivers of market orientation from the firm's broader strategic orientation comprised of elements how other various strategic orientation dimensions impact or determine market orientation. Given that desirable outcomes and performance advantages most often derive from market orientation, such gaps in knowledge regarding these key determinants are troubling. To augment understanding and to address compelling questions regarding the role of elements in a firm's strategic orientation in driving market orientation, we look to the extant literature (e.g., Morgan & Strong, 2003; Venkatraman, 1989) and identify several dimensions of the strategic culture as particularly key. Specifically, …