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The role of predevelopment activities in the relationship between market orientation and performance

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To determine how critical predevelopment activities are for a market-oriented firm to achieve superior performance, our study uses data from 126 firms in The Netherlands to investigate the structural relationships among market orientation, the proficiency in predevelopment activities, new product performance, and organizational performance. The results provide evidence that market orientation is positively related to the proficiency in strategic planning, idea generation and idea screening. Strategic planning and idea generation are positively related to new product performance, which in itself is positively related to organizational performance. Market orientation has no direct relationship with new product performance and organizational performance. Another interesting finding is that the links between market orientation and new product performance, and between market orientation and organizational performance are not moderated by the characteristics of the market environment.
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Document Type: Research Article

Affiliations: 1: Erasmus University Rotterdam, Rotterdam School of Management, Department of Marketing Management, The Netherlands 2: Delft University of Technology, Faculty of Industrial Design Engineering 3: Universiteit Nyenrode, Center for Supply Chain Management

Publication date: 2004-06-01

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