Is market orientation affected by the product life cycle?

Document Type

Journal article

Source Publication

Journal of World Business

Publication Date

6-1-2007

Volume

42

Issue

2

First Page

145

Last Page

156

Publisher

Pergamon Press

Keywords

Market orientation, Product life cycle, Business performance

Abstract

Considerable scholarly interest has been shown in the relationship between market orientation and business performance. Although a number of environmental moderators have been postulated to influence the market orientation-performance link, extant findings are inconclusive. This study takes a different approach by conceptualizing product life cycle stages in terms of variations in competitive intensity, market and technological turbulence. Data collected in Hong Kong reveal that Atuahene-Gima's [Atuahene-Gima, K. (1995). An exploratory analysis of the impact of market orientation on new product performance: A contingent approach. Journal of Product Innovation Management, 12: 275-293] product life cycle measure successfully discriminates stages in terms of market and technological turbulence, but fails to capture variation in competitive intensity. Market orientation is also found to be more highly valued by firms in growing and mature markets than firms in introductory and declining markets. Finally, the link between market orientation and firm performance is found to be strongest for firms in the growth stage and weakest for firms in the introductory stage of the product life cycle.

DOI

10.1016/j.jwb.2007.02.001

Print ISSN

10909516

E-ISSN

18785573

Publisher Statement

Copyright © 2007 Elsevier Inc

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Language

English

Recommended Citation

Wong, A. H. K., & Ellis, P. D. (2007). Is market orientation affected by the product life cycle? Journal of World Business, 42(2), 145-156. doi: 10.1016/j.jwb.2007.02.001

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