Predicting market orientation: Chinese retailers in a transitional economy

Abstract

PurposeThe purpose of this paper is to provide an investigation of market orientation of retailers in China, an emerging economy. Several predictors of Chinese retailers' market orientation are examined.Design/methodology/approachUsing survey data collected from 99 retailers in China, the paper tests the hypothesized relationships using a multiple regression model.FindingsThe paper finds that perceived supplier market orientation (SMO), firm size, and ownership are predictors of retailer market orientation (RMO). The results of this paper suggest that market orientation is perceived as important and is being adopted by retailers with varying ownerships and structures across China.Research limitations/implicationsThe study has several limitations including sample, sample size, and single‐respondent design. Nevertheless, the paper depicts a contemporary picture of Chinese retailers' adoption of market orientation.Practical implicationsThe findings of this study provide both retailers and suppliers strategies for improving market orientation and insights for effective channel management.Originality/valueThe paper focuses on retailer perspectives with the goal of determining the value of assessing the SMO; results from this study provide support for a link between the extent of RMO and how market‐oriented behavior coincides with perceived SMO.