The effects of customer and competitor orientations on performance in global markets: a contingency analysis

Zheng Zhou, James R Brown, Chekitan S Dev and Sanjeev Agarwal
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James R Brown: College of Business and Economics, West Virginia University, Morgantown, WV, USA
Chekitan S Dev: School of Hotel Administration, Cornell University, Ithaca, NY, USA
Sanjeev Agarwal: College of Business, Iowa State University, Ames, IA, USA

Journal of International Business Studies, 2007, vol. 38, issue 2, 303-319

Abstract: Should companies adjust their orientations toward customers or toward competitors in global markets? To answer this question, we use contingency theory and examine how the effects of customer and competitor orientations on performance are moderated by different environmental conditions. Our results from the global hotel industry indicate that a customer orientation works better in economically developed markets, as well as in markets with good local business conditions, greater resource availability, and demanding customers. In contrast, a competitor orientation is more effective in markets that are economically developing, have poor local business conditions, and face resource scarcity. Journal of International Business Studies (2007) 38, 303–319. doi:10.1057/palgrave.jibs.8400259

Date: 2007
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