The Integration and Comparison of Market Orientation Constructs

Abstract

ABSTRACT The purpose of this study is to compare the construct validity of market orientation between two mainstream models–the Kohli and Jaworski (1990) and Narver and Slater (1990). An integrated market orientation construct with four components–customer oriented intelligence generation, competitor oriented intelligence generation, inter-functional dissemination, and responsiveness was derived. One hundred and sixty-two hospitals in Taiwan were utilized as research objects to empirically test the reliability and validity of the measurement model fit among the three market orientation models. The results indicate that the integrated model has better construct validity versus the two other mainstream models in terms of measurement model fit using confirmatory factor analysis. Meanwhile, when using different analytical methods to test the association between market orientation and performance, the integrated model not only outperforms the other two models in the structural equation modeling test, but also provides a more comprehensive explanation in the stepwise regression model. However, in the analytical method comparison, LISREL generated more consistent results across all three models versus stepwise regression.