Antecedents of proactive and responsive market orientation

Abstract

Since the introduction of the proactive and responsive market orientation constructs into the market orientation literature, there has been limited empirical research regarding the antecedents of each type of market orientation and the relationship each may have on the market performance of new products. This research investigates the influence of organisational culture, competitive intensity and organisational age and size on the development of a firm’s market orientation, and how these two distinct forms of market orientation may influence organisational success. The results of this study indicate empirical evidence that cultures classified as adhocracy and market exhibit positive relationships with both responsive and proactive market orientation, whereas cultures classified as clan and hierarchy do not. Competitive intensity does not exhibit a significant relationship with either market orientation classification. Proactive market orientation exhibits a significant positive relationship with market performance, whereas responsive market orientation does not. The results may guide managers in developing the appropriate organisational environment to support successful innovation efforts.