The role of interfunctional market orientation in new product program success: An exploratory empirical analysis

A central tenet of the market orientation construct is the need for virtually all departments, not just the marketing department, to participate in gathering, disseminating and responding to market intelligence. Previous academic research provides empirical support for a positive relationship between market orientation and superior business performance. Superior business performance, for many firms, depends upon a continuous stream of new products emerging from their product development programs, yet few studies have demonstrated the link between market orientation and new product development program success. This dissertation conceptualizes market orientation below the strategic business level as interfunctional market orientation (IFMO) for cross-functional new product development teams.;The sample methodology for this dissertation utilized a dyadic approach for data collection from each company. Questionnaires were mailed to cross-functional new product team members, one from the firm's technology management group and one from the business development personnel. The survey instrument was comprised of existing measures and items used in previous market orientation and business performance research.;Results from ordinary least square regressions provide strong evidence of a positive link between IFMO and overall new product program success.;This dissertation adds to and broadens the cumulative empirical research investigating the link between market orientation and business performance. There is scant literature on market orientation and new product success. A major contribution of this dissertation is that it extends the marketing literature by empirically investigating the role of IFMO on new product program success. It also suggests to top management that creating a market orientation below the strategic business level, and specifically with interfunctional new product teams, will enhance the success of firm's new product development program.