The role of a firm's strategic orientation dimensions in determining market orientation

Little is known about how various strategic orientation dimensions determine market orientation. The authors identify four key dimensions of a firm's strategic orientation as critical antecedents to market orientation: the firm's aggressiveness, its future orientation, the extent of marketing formalization, and risk proclivity. Moderating effects of two environmental forces, competitive intensity and technology turbulence, are also considered in light of their relationship with various dimensions of strategic orientation and market orientation. Using a survey with firms spanning multiple industries, the proposed effects are tested with latent class analysis with multiple regimes. The results, based on an optimal two-regime solution, show that that although market orientation is significantly impacted by these strategic orientation dimensions, the pattern of influence differs based on a firm's membership in one of two regimes.

► Tests market orientation’s strategic antecedents: aggressiveness, future orientation, formalization, risk proclivity.
► Moderating effects of competitive intensity and technology turbulence are also examined.
► Using survey data from firms in multiple industries the effects are tested with latent class analysis with multiple regimes.
► Results show heterogeneity exists between firms; effects on market orientation differ between the two regimes identified.