Does Firm's Market-Orientation Behavior Lead Better Performance? The Competitive Dynamics Perspective

This study aims to combine the concept of market-orientation with competitive dynamics theory, and investigate how competitive actions of market-orientation affect firm's performance. Top 4 Taiwanese chain convenience stores, which are 7-ELEVEN, FamilyMart, Hi-Life and OK are used as the samples, the news related to competitive actions between these stores during 2000 similar to 2009 are collected, and the news of 10 years are further separated into 40 quarters. Data are reached from Knowledge Management Winner database. Moreover, for convenience store's competitive actions, this study employs structured content analysis to construct competitive action database of top 4 chain convenience stores. The final 3,525 competitive actions are retrieved from 1,477 news. The empirical results show that:(1) a positive relationship between competitive actions of market-orientation and number of competitors' action;(2) a negative relationship between number of competitors' actions number and focal firm's performance;(3) market growth strengthen the positive relationship between competitive actions of market-orientation and number of competitors' action; and(4) market growth weaken the negative relationship between number of competitors' actions and focal firm's performance.