Implementing competitive strategies: the role of responsive and proactive market orientations

By Ranjit Voola, Aron O'Cass. 2010

180 citations recorded by the source corpus.

Purpose – This study seeks to draw on the strategy implementation approach and the resource‐based view of the firm (RB theory) to investigate the relationships among competitive strategies (i.e. differentiation and cost‐leadership), responsive market orientation (RMO), proactive market orientation (PMO) and firm performance. The purpose is to show that competitive strategies have a significant effect on market orientation and market orientation has a significant effect on firm performance.Design/methodology/approach – The paper designed a mail‐survey that was sent to senior executives, which resulted in 189 usable surveys. Data were analysed using partial least squares (PLS) to test the hypotheses.Findings – The findings show that both competitive strategies influence RMO and PMO, which then influence firm performance. However, the results show that differentiation strategy has a stronger influence on RMO and PMO than cost‐leadership strategy, and that PMO has a stronger influence on performance than RMO....

Subfields: Strategy and Management

View Paper: https://www.semanticscholar.org/paper/30d96c7bf8da9aff44efe087ce90b9d1aa28a2e4