The effects of market orientation
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This research is designed to accomplish three goals. The first goal is to revisit the market orientation construct in order to define the different facets of it. A review of the market orientation literature is made to assess and synthesize the stock of accumulated knowledge regarding the market orientation construct. The second goal of the research is to develop a theory of the effects ofmarket orientation. Using the literature concerning resource-based theory and organizationallearning four learning capabilities of market orientation are identified. These are market orientation information system, market orientation domainwidth, market orientation means alteration, and market orientation tacitness. They are hypothesized to have a positive impact on product adaption. Product adaption is expected to affect relative price (price premium), sales growth, and profitability. A third goal of the research is to investigate the differences between the effects of market orientation for firms with a differentiation strategy emphasis in contrast to those with an overall cost leadership emphasis. It is argued that the impact of the four market orientation learning capabilities is greater for firms with a differentiation strategy emphasis. The test of the model is done with data from the Norwegian hotel industry. The sample contains 372 cases. Both the measurement and the structural model achieve satisfactory fit to the data. Three out of four hypotheses concerning the impact of market orientation learning capabilities on product adaption are supported. The moderating effect of business strategy on market orientation learning capabilities' impact on product adaption are supported for two out of four hypotheses. The indirect effects of market orientation receives support for four out of five hypotheses. Finally, in view of the observed results the contribution ofthis research is discussed in the concluding part of the dissertation.