Moderating effects on the market orientation and strategic performance relationship in public housing

Purpose: The purpose of this paper is to examine how external factors moderate public housing companies’ (PHCs) market orientation (MO) and strategic performance (SP) relationship. Design/methodology/approach: The quantitative method is applied to data from a survey sent to 289 PHCs in Sweden. Findings: The results reveal moderating factors. The companies take several initiatives to inform themselves about customers’ needs and distribute the information within the company, but economic conditions, market and technological turbulence in the municipalities moderate the relationship between MO and SP. Economic conditions make it difficult for PHCs to strategically act based on market needs when making decisions and planning construction strategies (SP). Research limitations/implications: This study is limited by focusing on PHCs, a sector that differs radically from the open market. The study highlights the effects of moderating factors that are important for companies’ SP and long-term construction strategies. From this limited focus, researchers might use the results to compare both similar and different market situations. Practical implications: The results of the study are useful for companies facing a similar market situation of external moderating constraints. The result might be used in future research related to the area in focus. Originality/value: This research adds new knowledge to market research by including the impact of economic conditions, which provides insight into how to develop and use market knowledge in real estate and public housing markets.