ABSTRACT
Market orientation concerns customer satisfaction in essence. Empirical studies have indicated that market orientation contributes to a firm’s superior performance, sustainable competitiveness, and organizational success. Drawing on theory of cooperation and competition, this study unravels the relationship between firm-customer goal interdependence and market orientation. Results of our study with a sample of 120 entrepreneurial firms recruited in China demonstrate that developing cooperative, but not competitive or independent, goals with customers is effective for facilitating collaboration among internal departments, which ultimately strengthens the market orientation of firms. Theoretical and practical implications are discussed.
