While the relationship between market orientation and new product performance has been extensively investigated, the mechanism by which market orientation contributes to new product performance was further studied in a business-to-business context. We developed a set of alternative research models to examine the roles of timing of entry and positional advantage in the market orientation—new product performance relationship. The results showed that industrial firms’ positional advantage is a key step in the process. Market orientation does not directly influence new product performance. Instead, market orientation helps to establish a firms’ positional advantage, which, in turn, positively influences new product performance in the marketplace. Timing of entry, shown to be an outcome of positional advantage, is not a determinant of new product performance in the business-to-business context. The findings revealed that market-oriented firms achieve superior new product performance through thoughtfulness indicated by a well-defined positioning strategy, not rapidity of action.

• Andy Wei Hao(University of Hartford)
• Chiquan Guo(The University of TexasPan American)
• Yong J. Wang(Ohio University)
• Anshu Saran(University of Texas of the Permian Basin)