Market orientation and business performance in MNC foreign subsidiaries— Moderating effects of integration and responsiveness

The impact of market orientation on business performance has been extensively studied in a wide range of business environments including those in which the multi-national corporation (MNC) subsidiaries operate. What remains unclear is, however, whether the relationship between market orientation and business performance in the contexts of MNC subsidiaries is linear or whether they would vary with the different configurations of business environments under which the MNC subsidiaries operate. To shed a light on the above issue, we analyzed data collected from a postal survey of 252 UK subsidiaries of MNCs to investigate whether the relationship between market orientation and business performance in the context is moderated by two environmental pressures under which the subsidiaries operate, namely, integration and responsiveness pressures. Evidence to support the moderating effects was identified, and the managerial and research implications were discussed.