Scale development for the inter-firm market orientation concept

Abstract

Purpose The purpose of this paper is to develop and validate a scale for inter-firm market orientation (IMO) based on an original conceptualization by Elg (2008). Building on the MARKOR scale, the IMO scale is introduced to better understand the market orientation efforts that occur within business relationships. Design/methodology/approach After establishing a conceptualization of IMO, an initial list of scale items is developed by adapting the original MARKOR scale. Several phases of qualitative pre-tests have been conducted with both academic experts and several manufacturer and reseller partner executives to assess the applicability and clarity of the measurement instrument. Using a quantitative survey design, the measurement instrument has been validated by relationship partner managers from both manufacturer and reseller companies. Findings The results of the analysis reveal that IMO is a second-order formative construct consisting of two first-order reflective constructs termed joint intelligence cooperation and joint customer responsiveness. Practical implications The operationalization of IMO suggests to manufacturers and their partners that the market intelligence cooperation efforts between them should be more focused on intelligence about the end users and less on general market trends. Further, the customer responsiveness efforts between the partners tend to be more reactive in nature, unlike the proactive stance in intra-firm market orientation. Originality/value The paper extends the notion of focal firms’ market orientation to IMO, which exists between partners in business relationships, and does so by developing a conceptualization and measurement instrument for IMO. This newly developed construct and scale can be used in future research to explore in greater depth the interplay between IMO and firm performance.