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Market orientation and business performance in MNC foreign subsidiaries— Moderating effects of integration and responsiveness

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  • Qu, Riliang
  • Zhang, Zelin

Abstract

The impact of market orientation on business performance has been extensively studied in a wide range of business environments including those in which the multi-national corporation (MNC) subsidiaries operate. What remains unclear is, however, whether the relationship between market orientation and business performance in the contexts of MNC subsidiaries is linear or whether they would vary with the different configurations of business environments under which the MNC subsidiaries operate. To shed a light on the above issue, we analyzed data collected from a postal survey of 252 UK subsidiaries of MNCs to investigate whether the relationship between market orientation and business performance in the context is moderated by two environmental pressures under which the subsidiaries operate, namely, integration and responsiveness pressures. Evidence to support the moderating effects was identified, and the managerial and research implications were discussed.

Suggested Citation

  • Qu, Riliang & Zhang, Zelin, 2015. "Market orientation and business performance in MNC foreign subsidiaries— Moderating effects of integration and responsiveness," Journal of Business Research, Elsevier, vol. 68(5), pages 919-924.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:5:p:919-924
    DOI: 10.1016/j.jbusres.2014.09.018
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    Cited by:

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    3. Kawai, Norifumi & Chung, Chul, 2019. "Expatriate utilization, subsidiary knowledge creation and performance: The moderating role of subsidiary strategic context," Journal of World Business, Elsevier, vol. 54(1), pages 24-36.
    4. Wenbo Jiang & Francesco Rosati & Huaqi Chai & Taiwen Feng, 2020. "Market orientation practices enhancing corporate environmental performance via knowledge creation: Does environmental management system implementation matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1899-1924, July.
    5. Swoboda, Bernhard & Morbe, Lukas & Hirschmann, Johannes, 2018. "International strategy’s effects on retailers’ local implementation and performance," International Business Review, Elsevier, vol. 27(3), pages 642-653.
    6. Chun-Yi Ho & Bi-Huei Tsai & Chiao-Shan Chen & Ming-Tsang Lu, 2021. "Exploring Green Marketing Orientations toward Sustainability the Hospitality Industry in the COVID-19 Pandemic," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    7. Williams, Christopher & Colovic, Ana & Zhu, Jiqing, 2017. "Integration-responsiveness, local hires and subsidiary performance amidst turbulence: Insights from a survey of Chinese subsidiaries," Journal of World Business, Elsevier, vol. 52(6), pages 842-853.

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