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Looking for performance : how innovation and strategy may affect market orientation models

Cambra-Fierro, Jesus J. and Hart, Susan and Mur, Ana Fuster and Redondo, Yolanda Polo (2011) Looking for performance : how innovation and strategy may affect market orientation models. Innovation: Management, Policy and Practice, 13 (2). 154 - 172. ISSN 1447-9338

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Abstract

Despite 20 years of research into various aspects of the 'market orientation' (MO) construct, doubt remains regarding the existence, nature and significancy of the relationship between MO and firm performance. To obtain more evidence some authors suggest including innovation in MO models. Debate continues to examine whether organizational strategy is an antecedent or a consequence of MO, whilst some argue that strategy moderates the MO-performance relationship. Furthermore, there are sectors of industry and geographies where the phenomenon has received very little investigation, even of an exploratory nature. This study aims to explore the MO-performance relationship and to value the effect of innovation in MO-performance models in a sector where MO was virtually unknown: the Spanish real estate industry. The magnitude of shifts taking place in this sector enhances its potential as a showcase for processes of anticipation and adaptation to the environment. This article also aims to shed some light on the question of whether strategy potentially moderates the MO-performance link. The principal implications of our findings are discussed.