Column 4 · Market Orientation · Era 6, Engagement and Networks (2010s)
Sustained MO Advantage
Formulation, process · Major · Cluster II, Resources and Orientation
Description
Using longitudinal data, they showed that market orientation's effect on performance has weakened over time as it diffused, so that it is becoming a cost of competing rather than a source of sustained advantage, although early adopters retained gains.
Managerial Implications
Early adopters of market orientation earned advantage; as competitors adopted it, the advantage became a requirement to compete, and its link to profit weakened. Market orientation is now necessary but not sufficient. Managers should expect the same of any widely adopted practice, from CRM to analytics, and look for advantage in how the practice is combined with capabilities and culture that competitors cannot copy.