Market orientation − firm performance link in a dynamic environment: looking inside the black box

Rahul Kumar Sett ()
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Rahul Kumar Sett: International University of Japan

AMS Review, 2018, vol. 8, issue 3, No 5, 163-179

Abstract: Abstract Our understanding of how market orientation can sustain superior firm performance in a rapidly changing environment is still evolving. This paper presents a model that explains the phenomenon by viewing market orientation as a firm-level dynamic capability that comprises three component capacities: to sense opportunities and threats; to seize opportunities and/or guard against threats; and to reconfigure firm resources in sync with environmental changes. These three capacities represent the three dimensions of market orientation. The nature of these capacities and the organizational processes that undergird them are explicated. It is argued that the capacities of sensing, seizing, and resource reconfiguration can help a market oriented firm to advantageously exploit environmental uncertainties and thereby sustain superior performance. Direction of future research and managerial implications are discussed.

Keywords: Market orientation; Dynamic capabilities; Real options; Organizational ambidexterity; Firm performance (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s13162-017-0099-2

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