Is market orientation affected by the product life cycle?

Hiu Kan, Ada WONG, Paul D. ELLIS

Research output: Journal PublicationsJournal Article (refereed)

31 Citations (Scopus)

Abstract

Considerable scholarly interest has been shown in the relationship between market orientation and business performance. Although a number of environmental moderators have been postulated to influence the market orientation-performance link, extant findings are inconclusive. This study takes a different approach by conceptualizing product life cycle stages in terms of variations in competitive intensity, market and technological turbulence. Data collected in Hong Kong reveal that Atuahene-Gima's [Atuahene-Gima, K. (1995). An exploratory analysis of the impact of market orientation on new product performance: A contingent approach. Journal of Product Innovation Management, 12: 275-293] product life cycle measure successfully discriminates stages in terms of market and technological turbulence, but fails to capture variation in competitive intensity. Market orientation is also found to be more highly valued by firms in growing and mature markets than firms in introductory and declining markets. Finally, the link between market orientation and firm performance is found to be strongest for firms in the growth stage and weakest for firms in the introductory stage of the product life cycle.
Original languageEnglish
Pages (from-to)145-156
Number of pages12
JournalJournal of World Business
Volume42
Issue number2
DOIs
Publication statusPublished - 1 Jun 2007
Externally publishedYes

Keywords

  • Business performance
  • Market orientation
  • Product life cycle

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