Effects of market orientation on business strategic behaviour

Abstract

The contribution of marketing to strategic management is a topic with important implications for executive practice. Within this research agenda the role of market orientation has deserved special attention as this concept is considered to be central to marketing. However, prior research has been contradictory and raised a substantial debate regarding the market orientation capability to influence strategy design. This paper reviews the existing debate and, according to the theoretical arguments posed, presents the results of a study that considers market orientation as an organizational resource that, according to the RBV principles, shapes the organizations' strategy design. Thus, the influence of market orientation on several dimensions of strategy is analysed as well as the effects of all these variables on business performance. Results indicate that market orientation may be regarded as a valuable resource to compete that fosters the achievement of a competitive advantage and whose effects are also clearly manifested in the strategic orientation adopted by an organization.

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