No abstract

Drawing on the resource-based view of the firm, this study addresses the dynamic capability–generating capacity of market orientation on firm performance. Whereas prior literature has examined environmental turbulence as a contextual condition shaping the market orientation–firm performance relationship, this study takes an internal approach by focusing on existing stocks of resources within the firm while controlling for environmental conditions. A conceptual model is developed that explains how market orientation can be transformed into dynamic capability when complemented by transformational (reconfigurational) constructs, such as innovativeness. The empirical results support the authors' theory that the effect of market orientation on firm performance is strengthened when market orientation is bundled together with internal complementary resources, such as innovativeness. The authors discuss the findings in the context of varying stages of the product life cycle and at different levels of market development.

For many years, firms have been organizing supplier conferences, conducting on-site visits, and talking about the concept of joint buyer/supplier teams. It is believed that the implementation of these concepts enhances inter-firm relationships. Furthermore, as firms move towards closer and more integrated supply chains it is argued that socialization is an increasingly important mechanism in facilitating and enhancing the supply integration process. This paper has taken these activities and embedded them in the theory of 'socialization' and supply chain integration. The authors propose and test a model on how buyers can use the concepts of supply chain integration and socialization to achieve improved supplier communication and operational performance, and therefore, to improve the buyer's perceived level of the supplier's contractual conformance. The findings reveal that socialization is essential for the development of any significant business relationship and the enhancement of a supply integration strategy. #