Market orientation of service networks: direct and indirect effects on sustained competitive advantage

Abstract

Market orientation is an organization‐wide concept that helps explain sustained competitive advantage (SCA). Since networks become ever more important, especially in the service sector, there is need to expand the concept of MO to a network setting. In line with Narver and Slater (1990 Narver, J. C. and Slater, S. F. 1990. The effect of market orientation on business performance.. Journal of Marketing, 54(4): 20–35. [Crossref], [Web of Science ®] , [Google Scholar]), the concept of Market Orientation of Networks (MONW) is developed. This study indicates how MONW relates to the resource‐based view (RBV) of the firm and the industrial organization (IO) view in explaining SCA. It is argued that MONW has direct and indirect effects on SCA. More precisely, the antecedent effect of MONW to resources and industry structure is considered.

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