| Although useful, market orientation as defined in the existing literature may be inadequate for addressing issues and problems specific to high-tech industries and products. Based on an extensive review of the extant literature (and input from leading marketing scholars), a broad-based definition of the market driving approach is developed, and compared to existing paradigms of market driven activity, customer leading and market pioneering. This study then proposes that market orientation is comprised of two sets of behaviors—market driven and market driving activities—that may be more appropriate for understanding performance outcomes in high-technology markets. Three distinct performance outcomes will be examined: financial performance, market performance and competitive advantage. Antecedents to a firm's emphasis on market driven and/or market driving activities are also suggested and empirically tested. Results indicate that firm resource levels and the characteristics of the surrounding market environment seem to have the greatest effects, while firm demographics and product characteristics play a lesser role in determining strategy choice. The delineation of market driven activity into customer driven and competitor driven behaviors was supported, while market driving activity remained a uni-dimensional concept. Customer driven and market driving behavior related positively to achieving competitive advantage, while competitor driven activity showed a negative relationship. As expected, higher levels of competitive advantage equated to higher levels of financial and market performance. |
