Study On The Determinants Of Chinese Firms In Implementing Market Orientation

Since Narver, Slater and Kohli, Jaworski introduced their own operational definition and practical measurement of market orientation from organizational culture view and information processing view, researches on this topic are carried out in-depth at all levels all around the world. And former researches from different industries by scholars from different countries suggest that there are significant positive correlation between implementing of market orientation and firm operating performance. This positive correlation is actually the very reason for continuing attention on this area of both academics and businessmen. However, existing researches on this topic concerned little in thorough investigation of determinants of firms to effectively implement market orientation, especially in transitional Chinese market.Thus, based both on literature studies and theoretical studies, the author gives MBA and EMBA students from School of Management, Huazhong University of Science and Technology an in-depth interview, then theoretical assumptions are carried out. To test assumptions of firms to implement market orientation in transitional Chinese market, multivariate regression analysis is done with samples from 228 enterprises. The results suggest that there do be some special factors that influence Chinese firms to implement market orientation in transitional economy background both from the internal and external layer of enterprises. Internally, nationalization and non-market behaviors carrying prevent firms from implementing market orientation while idle funds abundance promote it; externally, firms implementing of market orientation is influenced by market features like industrial characters and market competition degree, besides, it is also influenced by behaviors and attitudes of national politics. There, intervention of firm operation by government sectors prevent firms from implementing of market orientation while political supporting provide firms with superior system environment to implementing market orientation.