Measuring Market Orientation : Generalization and Synthesis

Abstract

This paper reports on an integrative, cross-national study which synthesizes and retests work of three separate groups of researchers who in the late 1980's developed measurements of a firm's Market Orientation. The projects resulted in three different but syntactically similar Market Orientation scales which, along with other measures, were used to support substantive conclusions, particularly those involving firm Performance. Based on a new study of 82 managers in 27 European and U.S. companies, we show that all three scales are reliable and valid. The scales also seem to generalize well internationally, both in terms of reliability and prediction of Performance. We also show that the scales are similar to one another in terms of various validity measures and in terms of correlations with Performance measures. Finally, we synthesize a 10-item scale based on a more parsimonious definition of Market Orientation as: " the set of cross-functional processes and activities directed at creating and satisfying customers through continuous needs-assessment. "