Goal interdependence approach to market orientation in entrepreneurial firms

Although the essence of market orientation concerns customer satisfaction, majority of past studies on market orientation have focused on intra-firm and inter- firm factors. Drawing on the theory of cooperation and competition, this study advances the theory by investigating how different forms of goal interdependence between a firm and its customer may influence the firm’s responses to both customers and competitors. Results of a survey study conducted with employees from 120 entrepreneurial firms demonstrated that developing cooperative goals with customers facilitates collaboration among internal departments, which ultimately strengthens the market orientation of firms.