Market Orientation and Enterprise Policy

Don O'Sullivan
Patrick Butler

Abstract

Enterprise policy in European economies is commonly focused on enhancing market orientation as a driver of firm performance. Irish enterprise policy, which is frequently cited as a model of best practice, focuses on developing market orientation within the States’ high-value-added sectors. However, based on a study of firms operating within these sectors of the Irish economy, the authors find that market orientation is not directly associated with either subjectively- or objectively-measured performance. The implications for enterprise policy in European economies and for the evolving understanding of market orientation are considered. The moderating effects of several environmental factors are also addressed.