Abstract:

Creating value for customers is key to the long-term success for any firm, which is the core of market orientation. However, the research on why firms differ in their levels of market orientation remains understudied. Drawing on the upper echelon theory and agency theory, the authors conduct a qualitative study to investigate whether the shareholdings of top managers and shareholders influence the development of firm market orientation. The findings suggest that the characteristics of their financial positions, including shareholding concentration and managerial ownership, shape their willingness and ability to promote market orientation. This study provides new insights into our understanding of the disparities in market orientation across firms. Managerial implications and the suggestions for future research are discussed.

Key words: market orientation, managerial shareholdings, ownership concentration