Creating a market orientation: An empirical validation of Gebhardt, Carpenter, and Sherry's (2006) Market Orientation Development Process (MODeP)

Abstract

Gebhardt, Carpenter, and Sherry (2006) suggest that organizations become more market-oriented through a deliberate and path-dependent organizational change process that we call the Market Orientation Development Process (MODeP). However, evidence of the MODeP’s efficacy in creating a market-oriented culture remains sparse beyond the cases described in detail by its authors. In this study, we develop a new instrument to measure an organization's progress in the MODeP. Based on a survey of 333C-level hospital executives, our study provides empirical support for (1) the effectiveness of the MODeP process in creating a market orientation and (2) its path-dependent nature. With this confirmation and the availability of a measurement instrument to monitor the transformation process, we hope to lower the barriers that have hindered research on creating a market orientation. Also, we confirm the validity of the MODeP as a roadmap for senior executives willing to develop a market orientation in their organizations, and we provide a means to implement it.