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Paper info: The Impact of Customer Orientation and Competitor Orientation on Organizational Performance of New Software Ventures

Title


The Impact of Customer Orientation and Competitor Orientation on Organizational Performance of New Software Ventures

Authors


Achim Walter, Hans Georg Gemuenden and Thilo A. Mueller

Place of Publication


The paper was published at the 17th IMP-conference in Oslo, Norway in 2001.

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Abstract


Software start-ups face market entry and acquisition of initial customers as one of their firstand vital challenges after business creation. Entrepreneurship literature suggests marketing tobe one of the pivotal predictors of business performance. The present study applies thecustomer orientation and competitor orientation concept of marketing research to new ventureperformance, under consideration of the influences of market environment related variables.In this article the authors theorize customer orientation (1), competitor orientation (2),competitive intensity (3) and market dynamism (4) to be predictors of organizationalperformance of new software ventures. A theoretical framework showing direct relationshipsbetween customer orientation, competitor orientation, and organizational performance, andmoderating influences of competitive intensity and market dynamism is provided. Drawingupon a database of 154 founder-managers in 77 new software ventures we found customerorientation and competitor orientation to be good predictors of venture performance.Competitor orientation is especially relevant for organizational performance when foundersperceived their markets as highly dynamic.