Article Abstract

"The Synergistic Effect of Market Orientation and Learning Orientation on Organizational Performance"
by William E. Baker and James M. Sinkula - Journal of the Academy of Marketing Science, Vol. 25, 4, pp. 305-318.

This research demonstrates that the ability of a firm to be market-oriented -- i.e., to base strategic decision-making on the analysis of customers and competitors -- is necessary, but not sufficient to significantly impact market share. A strong learning orientation must complement a market orientation. Learning orientation refers to the ability of firms to commit to ongoing, open-minded learning, the type of learning that challenges status quo assumptions about the marketplace. A strong market orientation without a strong learning orientation is likely to lead to incremental adjustments to elements of the marketing mix, but not the type of breakthroughs that accelerate performance. In the context of integrated marketing communications, firms that do not have strong learning orientations are not likely to develop innovative positioning strategies or message executions. Instead, they are likely to copy or slightly modify the promotional activity that is representative of the product category in which they compete. This is not likely to lead to the type of brand differentiation that characterizes highly successful brands.

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