The effect of market orientation on new product performance: a study among Singaporean firms
| DOI | https://doi.org/10.1108/10610420210445514 |
| Published date | 01 November 2002 |
| Date | 01 November 2002 |
| Pages | 399-409 |
| Author | B. Ramaseshan,Albert Caruana,Loo Soon Pang |
| Subject Matter | Marketing |
The effect of market orientation
on new product performance: a
study among Singaporean firms
B. Ramaseshan
Professor and Head, School of Marketing, Curtin University of
Technology, Perth, Australia
Albert Caruana
Asssociate Professor, Centre for Communications Technology,
University of Malta, Msida, Malta
Loo Soon Pang
Postgraduate, Curtin University of Technology, Perth, Australia
Keywords Market orientation, New product development, Performance, Singapore
Abstract New products are critical to the long-term growth and success of a firm. This
paper investigates the relationship between market orientation and new product
performance. Data are collected from Singaporean firms. Results show a strong positive
relationship between market orientation and the overall performance of new products.
Market orientation is also shown to have a strong positive effect on the market
performance and project performance of new products. Managerial implications and
limitations are discussed.
Introduction
New products are essential to the survival and long-term growth of any firm.
Success in product development is a critical management issue particularly
in technology driven firms. Managers of new products have little guidance
on how to improve or redirect their organizations' external orientation
towards their product target markets. Product managers often assume that by
engaging elite sales forces and the proper handling of the four marketing mix
variables, they can expect to reap the fruits from their portfolio of new
products. There have been a number of studies linking market orientation
and performance in business and industry; but there is little empirical
evidence to support the role of market orientation on new product
performance. The focal issue of this research is to examine the relationship
between market orientation and new product performance and to determine
whether market orientation is an important contributor to new product
success.
Market orientation
According to Kohli and Jaworski (1990) and McGee and Spiro (1988),
market orientation is a philosophy consisting of three core aspects, namely:
customer orientation; the integration of effort; and organisation objectives.
Felton (1959) describes marketing orientation by emphasizing the attitudinal
qualities of the concept and regards it as ``a way of thinking in doing
business that is based on the integration and co-ordination of all marketing
activities which, in turn, will integrate with the rest of the activities of the
company in an effort to maximise long-term profitability''. Deshpande et al.
(1993) assign a philosophical/cultural quality to market orientation and
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Product development
Three core aspects
JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 11 NO. 6 2002, pp. 399-409, #MCB UP LIMITED, 1061-0421, DOI 10.1108/10610420210445514 399
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