Market shaping orientation and firm performance

Abstract

Marketing theory suggests market orientation as an effective strategy for achieving and maintaining competitive advantage (Kohli/Jaworski 1990; Narver/Slater 1990). Reviewing the literature, Jaworski et al. (2000) criticize most conceptualizations of the construct to be too narrow and to neglect a proactive understanding of shaping customers and/or the market. Against this background, we discuss two approaches to being market oriented: the first can be described as a 'market driven' and the second as a 'market shaping' approach. We develop new measures for the latter construct and empirically test its antecedents and consequences. Moreover, we examine moderator variables affecting the market shaping orientation-performance linkage, using a sample of 181 firms.