Abstract
Market orientation is recognized as a source for sustainable competitive advantage in relatively static markets. When markets and, specifically, the competition in markets become more dynamic, sustaining a competitive advantage is challenging. Consequently, under these conditions sustainable competitive advantage may merely be achieved by concatenating the temporal advantages emerging in the market. In order to obtain temporal competitive advantages, the potential of market orientation is deployed through strategic capabilities and actions. In this study, we examine the relationship between market orientation, competitive action aggressiveness, and business performance. Specifically, the focus of competitive aggressiveness is on product innovation since it represents a part of the strategic domain of competitive actions. An analysis of 181 firms across various industries reveals the important role of competitive aggressiveness in a firm’s new product-related activity. Moreover, to be able to leverage stra...
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