Effective Forms of Market Orientation across the Business Cycle: A Longitudinal Analysis of Business-to- Business Firms

J. Froesen, M. Jaakkola, I. Churakova, H. Tikkanen

Research output

10 Citations (Scopus)

Abstract

Macroeconomic developments, such as the business cycle, have a remarkable influence on firms and their performance. In business-to-business (B-to-B) markets characterized by a strong emphasis on long-term customer relationships, market orientation (MO) provides a particularly important safeguard for firms against fluctuating market forces. Using panel data from an economic upturn and downturn, we examine the effectiveness of different forms of MO (i.e., customer orientation, competitor orientation, interfunctional coordination, and their combinations) on firm performance in B-to-B firms. Our findings suggest that the impact of MO increases especially during a downturn, with interfunctional coordination clearly boosting firm performance and, conversely, competitor orientation becoming even detrimental. The findings further indicate that both the role of MO and its most effective forms vary across industry sectors, MO having a particularly strong impact on performance among B-to-B service firms. The findings of
Original languageEnglish
Pages (from-to)91-99
JournalIndustrial Marketing Management
Volume51
Issue number1
DOIs
Publication statusPublished - 2016

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Longitudinal analysis
Business cycles
Business to business
Market orientation
Firm performance
Competitor orientation
Safeguards
Economics
Panel data
Business-to-business services
Customer relationship
Customer orientation
Business-to-business market
Industry
Service firms
Macroeconomics
Market forces
Boosting

Cite this

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T1 - Effective Forms of Market Orientation across the Business Cycle: A Longitudinal Analysis of Business-to- Business Firms

AU - Froesen, J.

AU - Jaakkola, M.

AU - Churakova, I.

AU - Tikkanen, H.

PY - 2016

Y1 - 2016

N2 - Macroeconomic developments, such as the business cycle, have a remarkable influence on firms and their performance. In business-to-business (B-to-B) markets characterized by a strong emphasis on long-term customer relationships, market orientation (MO) provides a particularly important safeguard for firms against fluctuating market forces. Using panel data from an economic upturn and downturn, we examine the effectiveness of different forms of MO (i.e., customer orientation, competitor orientation, interfunctional coordination, and their combinations) on firm performance in B-to-B firms. Our findings suggest that the impact of MO increases especially during a downturn, with interfunctional coordination clearly boosting firm performance and, conversely, competitor orientation becoming even detrimental. The findings further indicate that both the role of MO and its most effective forms vary across industry sectors, MO having a particularly strong impact on performance among B-to-B service firms. The findings of

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KW - firm performance

KW - business cycle

KW - industry sector

KW - configuration

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