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Reinterpreting the market orientation-performance relationship: a psychological perspective

Major problems are identified with the use of survey methodology to examine the relationship between market orientation (MO) and firm performance. The research, as it is argued, tells us more about managers' sense-making processes and causal attributions than whether and under what conditions MO drives performance, yet one way causal interpretations are still prevalent in the literature. The psychological mechanisms underlying managers' perceptions are identified and alternative causal paths specified for interpreting prior research results are proposed that also account for otherwise troublesome results. An exploratory experiment is designed to calibrate the extent of managers' attribution biases which is the most important part of the sensemaking framework. Different levels of performance, MO and environmental turbulence are manipulated in case scenarios. The results confirm a culture-centered view of MO and a strong psychological impact of performance on perceived environment turbulence. A multi-method view of studying the MO-performance link is proposed in the final part of the paper.

Identiferoai:union.ndltd.org:ADTP/258340
Date January 2007
CreatorsRong, Baiding, Marketing, Australian School of Business, UNSW
PublisherAwarded by:University of New South Wales. Marketing
Source SetsAustraliasian Digital Theses Program
LanguageEnglish
Detected LanguageEnglish
RightsCopyright Rong Baiding., http://unsworks.unsw.edu.au/copyright

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