Examining the Market Orientation-Performance Relationship: A Context-Specific Study

This study developed a comprehensive measure of market orientation and examined the market orientation-performance relationship in the health care industry. A survey of 159 hospitals yielded a strong positive relationship between market orientation and various measures of organizational performance. Additionally, the study found that market turbulence, competitive hostility, and supplier power moderated the market orientation-performance relationship.

[1]  Douglas A. Conrad,et al.  Vertical Structures and Control in Health Care Markets: A Conceptual Framework and Empirical Review , 1988, Medical care review.

[2]  Gregory G. Dess,et al.  Industry Effects and Strategic Management Research , 1990 .

[3]  K. Jöreskog A general approach to confirmatory maximum likelihood factor analysis , 1969 .

[4]  N. Carter,et al.  Small firm adaptation: responses of physicians' organizations to regulatory and competitive uncertainty. , 1990, Academy of Management journal. Academy of Management.

[5]  Anil K. Gupta,et al.  Business Unit Strategy, Managerial Characteristics, and Business Unit Effectiveness at Strategy Implementation , 1984 .

[6]  P. F. Anderson Marketing, Strategic Planning and the Theory of the Firm , 1982 .

[7]  R. Duane Ireland,et al.  RELATIONSHIPS AMONG CORPORATE LEVEL DISTINCTIVE COMPETENCIES, DIVERSIFICATION STRATEGY, CORPORATE STRUCTURE AND PERFORMANCE , 1986 .

[8]  Gregory G. Dess,et al.  Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit , 1984 .

[9]  John D. Blair,et al.  Strategy Formation Processes in Health Care Organizations: A Context-Specific Examination of Context-Free Strategy Issues , 1991 .

[10]  R. Arnould,et al.  Competition and Market Failure in the Hospital Industry: A Review of the Evidence , 1986, Medical care review.

[11]  H. J. Arnold Moderator variables: A clarification of conceptual, analytic, and psychometric issues , 1982 .

[12]  J. Liedtka,et al.  Formulating hospital strategy: moving beyond a market mentality. , 1992, Health care management review.

[13]  Robert E. Hoskisson,et al.  Strategic Management: Competitiveness and Globalization , 1994 .

[14]  Subhash Sharma,et al.  Identification and Analysis of Moderator Variables , 1981 .

[15]  Gordon E. Greenley Market Orientation and Company Performance: Empirical Evidence From UK Companies , 1995 .

[16]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[17]  R. Deshpandé,et al.  Organizational Culture and Marketing: Defining the Research Agenda , 1989 .

[18]  H. Kaiser An index of factorial simplicity , 1974 .

[19]  Robert W. Ruekert Developing a market orientation: An organizational strategy perspective , 1992 .

[20]  Raymond W. LaForge,et al.  A Marketing Strategy Analysis of Small Retailers , 1986 .

[21]  Zallocco Rl,et al.  Strategic market planning in hospitals: is it done? Does it work? , 1991 .

[22]  R. Duncan Characteristics of Organizational Environments and Perceived Environmental Uncertainty. , 1972 .

[23]  D. Aaker Managing Assets and Skills: The Key to a Sustainable Competitive Advantage , 1989 .

[24]  B. Golden,et al.  SBU strategy and performance: The moderating effects of the corporate‐SBU relationship , 1992 .

[25]  Eliot R. Smith,et al.  Research methods in social relations , 1962 .

[26]  Bernard J. Jaworski,et al.  Market orientation: Antecedents and consequences , 1993 .

[27]  R. Sitgreaves Psychometric theory (2nd ed.). , 1979 .

[28]  J. J. Cronin,et al.  An Examination of the Relative Impact of Growth Strategies on Profit Performance , 1988 .

[29]  D. Aaker Strategic Market Management , 1984 .

[30]  Danny Miller,et al.  Strategy, Structure, CEO Personality and Performance in Small Firms , 1985 .

[31]  F. Scherer,et al.  Industrial Market Structure and Economic Performance. , 1971 .

[32]  C. C. Snow,et al.  Strategy, Distinctive Competence, and Organizational Performance. , 1980 .

[33]  W. Mendenhall,et al.  A second course in business statistics: Regression analysis , 1981 .

[34]  Robert A. Smith,et al.  The effect of unequal group size on Tukey's HSD procedure , 1971 .

[35]  R E Miles,et al.  Organizational strategy, structure, and process. , 1978, Academy of management review. Academy of Management.

[36]  A Comprehensive Incentive Approach to Employee Health Care Cost Containment , 1986 .

[37]  John C. Narver,et al.  Does Competitive Environment Moderate the Market Orientation-Performance Relationship?: , 1994 .

[38]  Mary J. Culnan,et al.  ENVIRONMENTAL SCANNING: THE EFFECTS OF TASK COMPLEXITY AND SOURCE ACCESSIBILITY ON INFORMATION GATHERING BEHAVIOR* , 1983 .

[39]  L. C. Gapenski,et al.  Factors influencing high and low profitability among hospitals , 1993, Health care management review.

[40]  Martin G. Evans,et al.  Testing multiplicative models does not require ratio scales , 1979 .

[41]  John C. Narver,et al.  The Effect of a Market Orientation on Business Profitability , 1990 .

[42]  J. Pearce,et al.  Planned patterns of strategic behavior and their relationship to business-unit performance† , 1988 .

[43]  Gordon E. Greenley FORMS OF MARKET ORIENTATION IN UK COMPANIES , 1995 .

[44]  J. Pearce,et al.  The impact of grand strategy and planning formality on financial performance , 1987 .

[45]  Profit vs. public welfare goals in investor-owned and not-for-profit hospitals. , 1988, Hospital & health services administration.

[46]  Hong Liu Market Orientation and Firm Size:: an empirical examination in UK manufacturing firms , 1995 .

[47]  Edward R. Kemery,et al.  Failure to detect moderating effects: Is multicollinearity the problem? , 1987 .

[48]  William H. Glick,et al.  Typologies As a Unique Form Of Theory Building: Toward Improved Understanding and Modeling , 1994 .

[49]  Jacob Cohen,et al.  Applied multiple regression/correlation analysis for the behavioral sciences , 1979 .

[50]  M. Fottler,et al.  Assessing key stakeholders: who matters to hospitals and why? , 1989, Hospital & health services administration.

[51]  D. Hambrick Environmental scanning and organizational strategy , 1982 .

[52]  Nitin Mehta,et al.  Value-based strategies for industrial products , 1981 .

[53]  Myron D. Fottler,et al.  Health Care Organizational Performance: Present and Future Research , 1987 .

[54]  V. Zeithaml Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence: , 1988 .

[55]  Gregory G. Dess,et al.  Dimensions of Organizational Task Environments. , 1984 .

[56]  S. Topping,et al.  Health Care Strategy Research, 1985-1990: A Critical Review , 1991, Medical care review.

[57]  R. Luke,et al.  Quasi firms: strategic interorganizational forms in the health care industry. , 1989, Academy of management review. Academy of Management.

[58]  B. Chakravarthy Measuring strategic performance , 1986 .

[59]  Cynthia A. Montgomery,et al.  Research note and communication mergers that last: A predictable pattern? , 1986 .

[60]  D. Hambrick An Empirical Typology of Mature Industrial-Product Environments , 1983 .

[61]  R. Daft,et al.  Chief executive scanning, environmental characteristics, and company performance: An empirical study , 1988 .

[62]  George S. Day,et al.  Assessing Advantage: A Framework for Diagnosing Competitive Superiority , 1988 .

[63]  James Jd,et al.  Strategic Market Planning , 1990 .

[64]  John E. Prescott,et al.  THE EFFECTS OF TECHNOLOGICAL SOPHISTICATION ON STRATEGIC PROFILES, STRUCTURE AND FIRM PERFORMANCE , 1990 .

[65]  Bernard J. Jaworski,et al.  Market orientation: The construct, research propositions, and managerial implications. , 1990 .

[66]  J. Carroll An analytical solution for approximating simple structure in factor analysis , 1953 .

[67]  W. Cleverley,et al.  Competitive strategy for successful hospital management. , 1992, Hospital & health services administration.

[68]  Stephen M. Shortell,et al.  Strategy Making in Health Care Organizations: A Framework and Agenda for Research , 1985, Medical care review.

[69]  W. Richard Scott Organizations: Rational, Natural, and Open Systems , 1981 .