The Effect Mechanism Of Market Orientation Upon Organizational Performance

Since the 1970s,with the rapid developing of the global economy,the management strategy of business implementation has been adjusted time after time.In order to keep pace with the changing market environment,many scholars and entrepreneurs have increasingly realized that market orientation is the key attribute needed to achieve modern marketing management and strategy.In fact,the implementation of market orientation,formation of network relationships and the cultivation of dynamic capabilities are not performed in isolation—there is a certain degree of interdependence among them.Consequently,the following research questions have emerged:Is there a path of performance improvement among them? How far did market orientation influence enterprise network construction? Did market orientation also influence enterprise capabilities development? Moreover,is there a connection between network structure and dynamic capabilities? If so,did they influence the effect mechanism of market orientation in relation to organizational performance? And,if they do have an impact on the mechanism,how powerful are they?This study proposes that enterprise external network and dynamic capabilities will influence the correlation of market orientation and organizational performance.Based on the theories of market orientation,enterprise network,dynamic capability and the latest developments in empirical studies,this study presents a conceptual framework incorporating external network and dynamic capabilities into the mechanism study of market orientation in relation to organizational performance.It evaluates quantitative methods to explore the relationships among market orientation,enterprise external network,dynamic capabilities and organization performance.The study chose the traditional manufacturing industries operating in Pearl River Delta Region and Eastern region of Guangdong province as the target sample,and collected the data by questionnaires and in-depth interviews.The following questions were studied in depth:1.the interaction between market orientation,enterprise external network,dynamic capabilities and organizational performance;2.the influence of external network and dynamic capabilities on the association between market orientation and organizational performance.The results of the analyses supported the initial research propositions and hypothesis,i.e.there are significant correlations among market orientation,enterprise external network,dynamic capabilities and organizational performance.Market orientation has a positive effect on organizational performance.External network and dynamic capabilities are important intermediary variables between market orientation and organizational performance.Furthermore,sponsorship-based network can moderate the effect of market orientation on organizational performance.That is to say,firms can boost the effect of market orientation on organizational performance by rationally constructing their external network and facilitating their dynamic capabilities,thereby making the best of the network relations and dynamic capabilities to improve organizational performance.