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Market Orientation, Strategy, and Performance in the Primary Forest Industry

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Over a decade of research on market orientation has produced many insights into the market orientation–performance relationship. More recently, researchers have begun to incorporate other strategic phenomena into their market orientation work. We build on this growing knowledge base by investigating the mediating role of firm strategy on the market orientation-firm performance connection. Findings show that market orientation has a positive impact on all forms of firm strategy (i.e., customer differentiation, product differentiation, channel differentiation, and overall low cost). However, only a channel differentiation strategy in combination with a market orientation produced a positive impact on firm performance. In contrast, a low cost strategy had a positive impact on firm performance in the absence of a market orientation.
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Keywords: Market orientation; firm performance; strategy

Document Type: Research Article

Publication date: 2006-06-01

More about this publication?
  • Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.
    Forest Science is published bimonthly in February, April, June, August, October, and December.

    2016 Impact Factor: 1.782 (Rank 17/64 in forestry)

    Average time from submission to first decision: 62.5 days*
    June 1, 2016 to Feb. 28, 2017

    Also published by SAF:
    Journal of Forestry
    Other SAF Publications
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