Market orientation, competitive advantage, and performance: A demand-based perspective

By Kevin Zheng Zhou, James R. Brown, C. Dev. 2009

512 citations recorded by the source corpus.

This study assesses how customer value affects a firm's market orientation and consequently, competitive advantage and organizational performance in a service industry -- the global hotel industry. The findings show that if a firm perceives its customers as valuing service, the firm is more likely to adopt both a customer and a competitor orientation; if the firm thinks its customers are price sensitive, the firm tends to develop a competitor orientation. Moreover, the greater a firm's customer orientation, the more the firm is able to develop a competitive advantage based on innovation and market differentiation. In contrast, a competitor orientation has a negative effect on a firm's market differentiation advantage. Finally, innovation and market differentiation advantages lead to greater market performance (e.g., perceived quality, customer satisfaction) and in turn, higher financial performance (e.g., profit, market share).

Subfields: Marketing, Organizational Behavior and Human Resource Management, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/ae671fe99b0fc81f02d9db4542b755561aec787e

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Citations in the corpus

National Export-Promotion Programs as Drivers of Organizational Resources and Capabilities: Effects on Strategy, Competitive Advantage, and Performance (2011, background): “The positive link between market performance and financial performance is well documented in the domestic marketing literature (e.g., Homburg, Grozdanovic, and Klarmann 2007; Ramaswami, Srivastava, and Bhargava 2009; Zhou, Brown, and Dev 2009).”
Market demand, green product innovation, and firm performance: evidence from Vietnam motorcycle industry (2013, unknown): “Zhou et al. (2009) show that customer preference can be influenced by price.”
Organizational and competitive influences of exploration and exploitation activities in small firms (2014, background): “More specifically, the positive effect of MO on firm innovative capabilities and outcomes has been extensively studied (e.g. Atuahene-Gima, 1995; Morgan & Berthon, 2008; Slater & Olson, 2001; Zhou et al., 2009).”
Effects of supply chain integration and market orientation on firm performance: Evidence from China (2013, background): “The present study focuses on interorganizational relationships, examines the moderating effects of customer orientation and competitor orientation on the relationships between SCI and firm performance, and treats interfunctional coordination as a control variable, similar to Zhou et al. (2009).”
The dark side of the entrepreneurial orientation and market orientation interplay: A new product development perspective (2015, background): “A key to implementing a successful NPD strategy is through resource deployments such as strategic orientation (Gatignon and Xuereb, 1997; Zhou and Li, 2010; Zhou et al., 2009).”
Market orientation, marketing capability, and new product performance: The moderating role of absorptive capacity (2016, unknown): “On the other hand, MO, which is the process of generating and disseminating market intelligence to create and offer better value to the customer (Kohli & Jaworski, 1990), is a source of advantage for the firm (Kirca et al., 2005; Zhou et al., 2009).”
A supply chain sustainability innovation framework and evaluation methodology (2018, background): “Kammerer (2009); Zhou, Brown, and Dev (2009); Artiach et al. (2010); Horbach, Rammer, and Rennings (2012); Chiou et al. (2011); Zhu, Sarkis, and Lai (2012); MondéjarJiménez et al. (2015); Golini et al. (2017); Tariq et al. (2017) Enhancing social image of the organisation (SC3) Efforts companies…”