Market Orientation, Strategy, and Performance in the Primary Forest Industry
Authors: Hansen, Eric1; Dibrell, Clay1; Down, Jon1
Source: Forest Science, Volume 52, Number 3, June 2006 , pp. 209-220(12)
Abstract:
Over a decade of research on market orientation has produced many insights into the market orientation-performance relationship. More recently, researchers have begun to incorporate other strategic phenomena into their market orientation work. We build on this growing knowledge base by investigating the mediating role of firm strategy on the market orientation-firm performance connection. Findings show that market orientation has a positive impact on all forms of firm strategy (i.e., customer differentiation, product differentiation, channel differentiation, and overall low cost). However, only a channel differentiation strategy in combination with a market orientation produced a positive impact on firm performance. In contrast, a low cost strategy had a positive impact on firm performance in the absence of a market orientation.Keywords: Market orientation; strategy; firm performance
Document Type: Research article
Affiliations: 1: Eric Hansen, Professor, Forest Products Marketing, Department of Wood Science and Engineering, College of Forestry, Oregon State University, 119 Richardson Hall, Corvallis, OR 97331-5751—Phone: (541) 737-4240; Eric.Hansen2@oregonstate.edu. Clay Dibrell, Assistant Professor, Strategic Management, Department of Management, Marketing and International Business, College of Business, Oregon State University, Bexell Hall, Corvallis, OR 97331—Phone: (541) 737-4110; Fax: (541) 737-4890; Dibrell@bus.orst.edu. Jon Down, Director, Austin Entrepreneurship Program, College of Business, Oregon State University, Weatherford Hall, Corvallis, OR 97331—Phone: (541) 737-6160; Fax: (541) 713-8045; Down@bus.orst.edu., Fax: (541) 737-3385
