How departments' decision-making influence and interdepartmental dynamics relate to two facets of strategic market orientation

Abstract

Research has established the benefits of responsive and proactive market orientation in building successful and sustainable businesses, but questions about departmental antecedents that foster these orientations remain. The present study addresses these questions by building upon the coalitional view of the firm and the ‘thought world’ concept and conducting a holistic examination of how the constellation of departmental influence, dispersion of influence, and interdepartmental dynamics relate to responsive and proactive market orientation. Linear and curvilinear effects are tested empirically. Findings indicate that strong marketing and sales departments are important for both responsive and proactive market orientation, but a strong R&D department is also important for a proactive market orientation. Further findings reveal interaction effects and the u-shaped relationship of the examined antecedents with proactive market orientation. This study sheds light on the consequences of departmental antecedents for responsive and – for the first time – proactive market orientation and provides guidance for managers.

Keywords:

• responsive and proactive market orientation
• departmental decision-making influence
• departmental conflict
• departmental connectedness