Web Assimilation and the Market Orientation-Performance Relationship

Occupying the center stage of the theory and practice of marketing strategy for the past three decades is the concept of market orientation. The fundamental assumption that firms exhibiting a greater market orientation will show better financial and market performance has received mixed support to date. It overlooks the fact that a market oriented organization may fail to respond to market needs because it lacks the capability to do so. In an e-commerce context, the relationship between a firm’s market orientation and its business performance is contingent on web assimilation, i.e. the extent to which web technologies have been infused into marketing activities and strategies that support e-commerce initiatives. This study will examine the impact of this important moderator. A content analysis of CEO letters to shareholders from corporate annual reports will serve as the data source.