This study developed a comprehensive measure of market orientation and examined the market orientation-performance relationship in the health care industry. A survey of 159 hospitals yielded a strong positive relationship between market orientation and various measures of organizational performance. Additionally, the study found that market turbulence, competitive hostility, and supplier power moderated the market orientation-performance relationship.

This study developed a comprehensive measure of market orientation and examined the market orientation-performance relationship in the health care industry. A survey of 159 hospitals yielded a strong positive relationship between market orientation and various measures of organizational performance. Additionally, the study found that market turbulence, competitive hostility, and supplier power moderated the market orientation-performance relationship.

This article identifies the strategic types in the hospital industry based on the hospital's use of Porter's generic strategies in their pure and hybrid forms. The article also examines differences in performance of hospitals across strategic types. Results indicate that hospitals that follow a focussed cost leadership strategy, in general, have superior performance on a variety of performance measures, while hospitals that use a combination of cost leadership and differentiation perform the poorest. Implications of findings for hospital administrators are also discussed.