Abstract
Purpose – The purpose of this study is to provide new insights into the link between market orientation (MO) and strategic performance by disaggregating the MO construct. With a focus on responsiveness, a crucial element of MO, this research explores antecedents as well as outcomes in the strategic business units (SBUs) of MNCs. The decision-making structure of the firm was modeled as a moderator of the link between responsiveness and performance. Design/methodology/approach – Survey data from upper level managers employed by 126 MNC SBUs representing 23 industries were collected. Findings – The key findings indicate that: responsiveness mediates the link between intelligence generation and strategic performance; responsiveness also mediates the link between resource flexibility and strategic performance; and the link between responsiveness and strategic performance is moderated by the SBU's decision-making structure (i.e. centralization). Originality/value – This study contributes to the conceptual precision of the composite construct MO, and also illustrates an avenue to increase strategic performance. Managerially, it provides managers with prescriptive suggestions for leveraging the value of the elements of MO with respect to the firm's decision-making structure.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
