A Study Of The Effect Of Market Orientation On Performance In New Venture

Attention of market orientation, previous research suggests that market orientation implementation in an organization requires a lot of resources, but in the new starts, they lack of resources, it is difficult to implement market orientation strategy to meet the demand. So little attention has been paid to market orientation of the new start-ups. Blankson (2005) pointed out that market orientation of the mature enterprises to consider the application only because it has a formal marketing department, they can systematically collect information and access to resources, rather than the premise has sufficient resources, so when the resource constraints faced by new enterprises they can also adopt a market orientation strategy. Therefore, market orientation start-ups in recent years began to receive much attention.Existing research focus more on contingent relationship of market orientation and performance, thus research emphasis in what situations a market orientation play better, but not sufficient the mechanism of market orientation. Implementation of market orientation strategy, enterprises generally follow a specific procedure and processes, such as customer needs through market research to obtain customer information, then share these resources in various departments (Kohli & Jaworski, 1990; Narver & Slater, 1990). Resource based view suggest that scarce, valuable, difficult to imitate resources is to obtain a source of competitive advantage (Barney, 1991). But because the implementation of market orientation strategies are often insufficient to bring the resources needed to create new business capabilities to match resources with the enterprise, reformed combination of new capacity. Sirmon & Hitt (2003) pointed out that the company needs to obtain the rational allocation of resources, integration and use to maintain their sustainable competitive advantage. This is why the same strategy to implement market orientation to different enterprise, its effects is very different. Business performance from the implementation of market orientation and because access to external resources and internal resources, integration (Hou, 2008), but not all of the resources in the formation of the competitiveness of both have the same contribution (Barney, 1991). Jlittner and Wehrli (1994) pointed out that the resources within the enterprise must be tied together in a special way, before we can develop a capacity to further competitiveness. Therefore, integration of resources plays an important role in the relationship of market orientation and business performance. In this paper, we start from the existing research on market orientation and the resource based view, then research the role of resource integration to the relationship of market orientation and performance.Significance of this study demonstrates the active role of the two dimensions of market orientation on the performance of new enterprises in China. With the most market orientation scholars divided it into three different dimensions, highlighting the existence and the important role of the active market orientation scenarios in China,. And based on the resource-based theory, confirmed the important role of the two different ways of resource integration in the market orientation - performance of this chain, that a supplement to the direct role of market orientation and performance and further explanation in the transformation mechanism of market orientation to the performance to form a unified understanding. This is different from traditional research, traditional research is to investigate the multi-chain innovation in this intermediary role, based on the strategic level, while the paper that all activities are within the enterprise and resource-related activities, starting from the resources of the enterprise strategy and the relationship between performance and more microscopic.Through literature review, we find that the two dimensions of market orientation on market orientation scale more comprehensive interpretation of the concept. It consists of proactive and responsive market orientation; proactive market orientation is to find, understand and meet potential customer needs; responsive market orientation is to find, understand and meet the expressed needs of customers. Understanding of resource integration, the paper that the integration of resources including the ability to create ways to develop integration and stability of adjustment, to develop a method based on a whole new way in existing resources and new access to resources (including technical, financial, staff, etc.) reorganization is to create capacity; stable adjustment method is based on the existing capacity to make small, gradual improvements, aimed at maintaining the status quo to the times. Include: improving the quality of available resources (such as for staff training) to maintain the status of existing capacity. Through these market orientation and resource integration on the synthesis, we construct the theoretical framework which includes market orientation, resource integration and performance, market orientation in start-ups focus on the performance of new enterprises, resource integrating, and their impact on performance; the medium role of resource integration between market orientation and performance In this paper, it is five assumptions.In this paper, we use quantitative research methods to test the hypothesis put forward. Verify the required data from Jilin University in Changchun City Centre for Entrepreneurship of new enterprises, the questionnaire survey. This total of 235 questionnaires returned, according to new enterprises aged less than 8 years and not more than 25% lack of Information request, excluding 43 invalid questionnaires, 192 valid questionnaires were eventually obtained, the questionnaire response rate was 81.7%. The survey questionnaire was mainly business entrepreneurs, because they are familiar with business growth process from creation to all the circumstances. This paper uses SPSS software, and multiple regression analysis. Validation results show that the proposed five hypotheses were passed. Therefore, this paper concludes that in the new enterprises, market orientation have a positive effect on performance, while resource integration has played a greater role in the indirect effects.The innovation of this study are as follows, (1) taking into account the difference between start-up companies and mature enterprises in resources, opportunity identification, organizational structure, organizational culture, this study aims at new enterprises, as the research object of the relationship between market orientation and performance. (2) Exploratory concept from the perspective of the resource base to develop the proactive and stability of resource integration to study indirect effects on the role of market orientation on performance, which in start-ups reveal the mechanism.