Considering strategic proactiveness within a market knowlewdge diffusion framework

Considering strategic proactiveness within a market knowlewdge diffusion framework
Document type
Working Paper
Author(s)
Kouropalatis, Yiannis; Hughes, Paul; Morgan, Robert E
Publisher
Cardiff Business School
Date of publication
1 June 2006
Series
Cardiff Marketing and Strategy Working Papers
Subject(s)
Marketing: all aspects of marketing, advertising and public relations
Collection
Business and management
Material type
Reports

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Market orientation remains the focus of extensive research, reflecting a consensus for its centrality and importance pertaining to organizational outcomes. Aiming to extend our understanding of the concept, this paper investigates market orientation in the context of organizational learning and adopt a broader perspective by engaging proactive strategic orientation when considering knowledge diffusion effects on organizational performance. To that end, the authors initially examine organizational learning effects on both reactive market orientation and strategic proactiveness. They subsequently investigate the relationships between these constructs and business performance when moderated by effective strategic market planning. They approached the study by generating data from 149 European high technology firms, targeting the SBU level. Their methodology included structural equation modeling as a means to test our hypotheses and our results provide contributions in 3 main areas: (i) According to our findings, market orientation and strategic proactiveness are significantly affected by organizational learning. (ii) Business performance is not directly affected by strategic proactiveness but there is an indirect effect when that path is mediated by market orientation. Finally, (iii) effective strategic market planning acts as a moderator between market orientation and business performance.

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