Integrated Framework of Antecedents and Effects of Market Orientation

Abstract

Earlier research concerning market orientation-related issues focuses on conceptualization of market orientation and its ingredients; various antecedents of market orientation; and impact of market orientation on firm’s entrepreneurial orientation, strategies, innovativeness and performance. This article is a descriptive and qualitative review of earlier research concerning all these issues. It also discusses the mediators and moderators that affect relationship between market orientation and firm’s performance. This article provides the holistic picture of what it means to be market oriented, what needs to be done to be better in market orientation and how market orientation affects firm’s performance. The article summarizes the propositions that emerged from the extensive review of literature, followed by the presentation of a proposed integrated framework of antecedents and effects of market orientation with its likely implications. These propositions and the proposed integrated framework provide a concrete base for carrying out future research studies. Thus, this article is significant value addition to the body of knowledge. Review of earlier research established that there exists a positive, significant and robust link between market orientation and firm performance. The review also indicates that market orientation has positive associations with an organization’s innovativeness and orientation mediated by innovation creates superior performance of a firm. The review also states that in earlier research, it has been found that there exists a close association between market orientation and entrepreneurial orientation as well as between market orientation and marketing planning/operational marketing strategies. Developing and improving on a firm’s market orientation may make a firm’s capabilities become more distinctive over the long run, resulting in sustainable competitive advantage.