An Exploratory Study of Market Orientation in China

Abstract

The concept of market orientation (MO), originally developed in the West and applied to the market economies, also seems to apply to China. Companies operating in China are found to have practised three forms of MO, namely underdeveloped, competitor-focused, and comprehensive MO. Differences among the three forms of MO lie in five key MO factors and two market environment (ME) variables. The MO items most characteristic of the MO concept are ‘Customer satisfaction frequently and systematically measured’, ‘Close attention given to after-sales service’, ‘Inter-functional communication of customer information and experience’, ‘Managers understand how each staff can contribute to creating customer value’, and ‘Rapid response to competitive market actions’. The ME items are ‘Changes in technology of R&D operations’, and ‘Change in total market share held by the four largest competitors in the industry’, reflecting the turbulent nature of the ME in China. While companies practising a specific form of MO are found to have achieved a different level of business performance, they are not found to have particular organizational characteristics.