Paper info

Performance implications of the buyer-supplier market orientation fit

David Gligor and Ismail Golgeci

The paper was published at the 35th IMP-conference in Paris, France in 2019.

Archival and survey data were collected from 876 firms (438 firm-supplier dyads) to explore the impact of market orientation fit (i.e., fit between the focal firm’s market orientation and its supplier’s market orientation) on the focal firm’s performance (ROA). The findings resulting from polynomial regression and surface plot analysis suggest that in today’s business environment it is no longer sufficient for firms to focus exclusively on their own market orientation as a source of competitive advantage, but on their key suppliers’ market orientation as well. The study’s results indicate a direct and positive relationship between market orientation fit and ROA. The strength of the relationship increases when the exchanged business volume increases between the focal firm and its supplier, and when the respective relationship progresses in age. Furthermore, firms with market orientation fit perform best, followed by firms with negative misfit (market orientation is lower than their key supplier’s market orientation), while firms with positive misfit (market orientation is higher than their key supplier’s market orientation) are the laggards. Furthermore, positive misfit has a stronger negative impact on the focal firm’s ROA compared to misfit in general and negative misfit. Theoretical and managerial implications are derived from the findings.