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The Relationship between Market Orientation and Performance under Different Environmental Conditions: The Moderating Effect of the Top Management Team's Risk Taking Behavior
Beginning of article
ABSTRACT
The literature on market orientation finds support for its positive relationship with organizational performance. However, it is important to know what conditions moderate this relationship. Using a sample of 166 Canadian companies (in a post-NAFTA environment), we find evidence to suggest that the risk propensity of the firm's top management team (TMT) plays a critical role in translating market orientation to improved performance. The moderating effect of the TMT's risk propensity varies across various environmental conditions such as market turbulence, competitive intensity, and technological turbulence. The implications of these findings are …
