2006
DOI: 10.1177/0092070305281090
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Creating a Firm-Level Dynamic Capability through Capitalizing on Market Orientation and Innovativeness

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 orient… Show more

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Cited by 549 publications
(497 citation statements)
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References 47 publications
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“…Our results also support Gabler et al [16], in suggesting that innovative local governments not only have become pioneers of green technology, they also develop their green resources, making these resources part of their own identity and transferable to others. Just as innovativeness amplifies the influence of market orientation on firm performance [72], we find that eco-oriented local governments that are innovative, are best suited to develop and optimize the human, business, and technology resources necessary in the formation of a sustainable eco-system, and ultimately to achieve a competitive advantage in attracting new citizens and companies to a "green" region.…”
Section: Discussion and Limitationsmentioning
confidence: 89%
“…Our results also support Gabler et al [16], in suggesting that innovative local governments not only have become pioneers of green technology, they also develop their green resources, making these resources part of their own identity and transferable to others. Just as innovativeness amplifies the influence of market orientation on firm performance [72], we find that eco-oriented local governments that are innovative, are best suited to develop and optimize the human, business, and technology resources necessary in the formation of a sustainable eco-system, and ultimately to achieve a competitive advantage in attracting new citizens and companies to a "green" region.…”
Section: Discussion and Limitationsmentioning
confidence: 89%
“…Market orientation, in isolation, is unlikely to qualify as dynamic capability; it needs to be complemented by other internal resources that will lift its competitive value (Menguc and Auh, 2006;Moorman and Slotegraaf, 1999). Market orientation encourages firms to use their capabilities to coordinate resources (for example, employees) in order to better serve customers (Hult et al, 2005).…”
Section: Market Orientation and Marketing Activitiesmentioning
confidence: 99%
“…This customer-centric approach is considered to impact upon customer loyalty and retention, and has been viewed as the key outcome of the marketing process (Sheth, Sisodia, & Sharma, 2000). Hence, understanding and meeting the needs of customers is vital to all organizations (Oakland, 1993), a sentiment widely reported within the market orientation literature (for example, Menguc & Auh, 2006;Narver & Slater, 1994).…”
Section: Introductionmentioning
confidence: 99%
“…First, the term market orientation clarifies that the construct is not exclusively a concern of the marketing function. Rather, a variety of departments participate in following routines and processes for generating and disseminating market intelligence, and adopting actions in response to this information (Menguc & Auh, 2006;Shapiro, 1988). Second, the term market orientation is less politically charged in that it does not inflate the importance of the marketing function within organizations (Shapiro, 1988).…”
mentioning
confidence: 99%