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Market knowledge diffusion and business performance

Hughes, Paul, Morgan, Robert E. ORCID: and Kouropalatis, Yiannis ORCID: 2008. Market knowledge diffusion and business performance. European Journal of Marketing 42 (11/12) , pp. 1372-1395. 10.1108/03090560810903718

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Purpose – Drawing on the burgeoning proactive market orientation literature and its role within the organizational learning-performance thesis, the aim of this aricle is to investigate further this nomological network. Design/methodology/approach – The article adopts a market knowledge diffusion approach to examine the effect of organizational learning (a second-order construct composed of knowledge acquisition, information distribution, information interpretation, and organizational memory) on both (reactive) market orientation and strategic proactiveness. Thereafter, it identifies both the pattern of direct relationships between these constructs and business performance and those moderated by strategic market planning capabilities. Using data generated from European high technology SBUs, the article uses structural equation modelling to test these relationships. Findings – It is found that organizational learning does significantly effect both proactive market orientation and strategic proactiveness. However, there is no direct effect of strategic proactiveness on business performance, but rather this relationship is mediated by market orientation. It is also found that strategic market planning capabilities moderate the market orientation-business performance relationship. Originality/value – This study acknowledges the paradox that results from the potential conflict between two important elements of strategy: commitment and flexibility. The article contributes and expands on the existing research by adopting the strategic ambidexterity perspective, effectively considering the co-existence of commitment and flexibility and the associated positive performance implications.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce
Uncontrolled Keywords: Business performance ; Business planning ; Knowledge management ; Market orientation ; Market research ; Workplace training
Publisher: Emerald
ISSN: 0309-0566
Last Modified: 19 Oct 2022 08:55

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