Measuring Market Orientation: Generalization and Synthesis

  • Deshpandé R
  • Farley J
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This paper reports on an integrative, cross-nationalstudy which synthesizes and retests work of three separate groupsof researchers who in the late 1980‘s developed measurementsof a firm's Market Orientation. The projects resulted in threedifferent but syntactically similar Market Orientation scaleswhich, along with other measures, were used to support substantiveconclusions, particularly those involving firm Performance. Basedon a new study of 82 managers in 27 European and U.S. companies,we show that all three scales are reliable and valid. The scalesalso seem to generalize well internationally, both in terms ofreliability and prediction of Performance. We also show thatthe scales are similar to one another in terms of various validitymeasures and in terms of correlations with Performance measures.Finally, we synthesize a 10-item scale based on a more parsimoniousdefinition of Market Orientation as: ’’the set of cross-functionalprocesses and activities directed at creating and satisfyingcustomers through continuous needs-assessment.‘‘

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  • Rohit Deshpandé

  • John U. Farley

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