Abstract

Building on the resource-based view, this study investigates how market and product expansion strategies work as mediators between a firm’s market orientation (MO) and performance. The manuscript then examines the moderating effects of political and business ties on the relationships of MO to market and product expansions. Employing survey data on Chinese firms, we find that MO leads to performance improvement by stimulating both market and product expansion strategies. However, political and business ties have opposite effects on moderating these relationships. Political ties enhance the impact of MO on market expansion but impede the impact of MO on product expansion; in contrast, business ties improve the impact of MO on product expansion but inhibit the impact of MO on market expansion.

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