Impact Of Market Orientation And Strategic Flexibility On Business Performance Under Dynamic Environment

After China’s accession to the WTO, enterprises face complex and dynamicenvironment. How to help enterprises deal with the environment changes, and improve thecore competitiveness and business performance is a hot issue for many managers andscholars. Research from home and abroad found that market orientation and strategicflexibility can effectively and efficiently help enterprises maintain the competitiveadvantage in this uncertainty environment.Based on the system sort out about the related literature at home and abroad, thisresearch divide market orientation into responsive and proactive market orientation, andstrategic flexibility into resource and coordination flexibility, to explore the mechanism ofaction between market orientation, strategic flexibility and business performance, andfurther test the moderating effect of environment variable. This survey chooses China’senterprises as research objects, and collects data through a questionnaire survey. Then weuse statistical software, such as SPSS17.0and LISREL8.70, to analyze data and test thehypotheses we raised.Based on the survey of226China’s local enterprises, the study find that bothresponsive and proactive market orientation don’t directly influence the businessperformance, but indirectly affect business performance through resource and coordinationflexibility. Relative to proactive market orientation, the total effect is more significantbetween responsive market orientation and business performance. The study also showthat two forms of strategic flexibility impact business performance through differentapproaches: coordination flexibility direct influence the enterprise performance, whileresource flexibility improves performance via coordination flexibility. In addition, thisstudy also examines the moderating effect of the environment variable (technologyturbulence, market turbulence and competitive intensity) between two forms of market orientation and business performance, and the results show that market turbulence have amoderating effect between proactive market orientation and enterprise business. Importantmeanings are provided for Chinese enterprises to access to excellent performance in thedynamic environment.