Frambach, Ruud T. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics) Prabhu, Jaideep Verhallen, Theo M.M.
Abstract
In this paper we examine how business strategy influences the nature and extent of firms' market orientation and how this in turn influences the extent of firms' new product activity. Specifically, we develop a framework linking firms' relative emphasis on cost leadership, product differentiation and focus strategies on firms' customer, competitor and supplier orientation as well as their new product development and introduction activity. We use this framework to develop relevant hypotheses which we then test on survey data from 157 Dutch firms of varying sizes and from across various industries. The surprising findings are that a greater emphasis on a focus strategy results in a decreased emphasis on customer orientation and that competitor orientation influences new product activity only indirectly via customer orientation. Limitations of the study and implications of the findings for future research on market orientation and new product activity are discussed.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Free University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number
0034.
For technical questions regarding this item, or to correct its listing, contact: (R. Dam).
Related research
Keywords:
Find related papers by JEL classification: M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
This paper has been announced in the following NEP Reports:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.: