| Market orientation is a fundamental concept in marketing that refers to the implementation of the marketing concept throughout the organization. Using an institutional theory perspective, the present research investigates how both the host country environment (i.e., country institutional profile) and relationships of the subsidiary with its headquarters (i.e., relational context) affect the internalization and implementation of market orientation at the subsidiaries of MNCs and lead to various states of market orientation (i.e., active, ceremonial, emerging, and recessed market orientation). Additionally, this dissertation also examines the performance implications of these different states of market orientation for MNC subsidiaries.; The findings of the study indicate that the presence of laws and government regulations that support market-oriented practices in an organizational environment affect the extent to which subsidiaries of MNCs implement a market orientation. Regarding the effects of relational context variables, this study demonstrates that MNC subsidiaries implement and internalize a market orientation when they perceive and believe that common knowledge, as well as cognitive categories and frames regarding market orientation, has been established by headquarters in the MNC context. Moreover, the findings of this study suggest that subsidiaries internalize market-oriented values and norms, when they identify themselves with headquarters. Finally, the study findings suggest that a market orientation seems to be most effective in increasing a subsidiary's corporate social performance when it is fully institutionalized (i.e., implemented and internalized). Based on these findings, implications for practice and future research are discussed. |
