Prior research has been equivocal on the role that competitive environment
plays in moderating the relationship between market orientation and a firm'
s business performance, even though such a moderating effect is conceptuall
y quite plausible (Slater and Narver 1994). In this article, the authors em
pirically examine the role of business strategy type as an alternative, pot
ential moderator of the market orientation-performance relationship. By usi
ng an improved version of Kohli and Jaworski's market orientation scale (Ja
worski and Kohli 1993; Kohli, Jaworski, and Kumar 1993), the authors find e
vidence that supports the moderating effects of business strategy type on t
he strength of the relationship between market orientation and business per
formance. The authors also offer implications and future research questions
based on the findings.