Introduction
Conceptual framework
University spin-offs and market orientation
Market orientation-related issues | Study | Aim | Sample and measures | Results |
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MO as a characteristic of the new venture’s founder(s) leading to strategic actions taken after company formation oriented towards serving customer needs | Roberts (1990) | To explore success and failure determinants of research-based spin-off companies | 114 MIT-based spin-offs Time allocation by founders’ team towards efforts to sell company products and formal market-related activities | a. A small percentage of technological enterprises begin with an orientation towards their markets and towards serving their customers’ needs. b. Many of the companies gradually evolve in this direction, manifesting a shift in both time allocation and formal market-related activities c. As the size of the founding team increases, a greater proportion of their time is spent in efforts to sell the company’s products. |
MO as an outwards-directed sensitivity of the spin- off founder(s) | Grandi and Grimaldi (2005) | To investigate organizational factors influencing the process by which academics form new ventures that are likely to affect their performance | 42 Italian Academic spin- offs Variables refer to the extent to which academic founders were open to new stimuli from the outside before starting the new venture (four items, reflecting their attitudes towards 1. consulting for companies; 2. collaborating with industrial partners; 3. transferring academic knowledge to companies; 4. patenting) | The market orientation of the academic founders and the frequency of their interaction with external agents positively affect business idea market attractiveness at the time of establishing the new venture. |
MO in young technology ventures and its interrelationship with entrepreneurial orientation (EO) | Roskos and Klandt (2007) | To explore the construct of MO for new tech ventures, thereby contributing to the overall research in MO by verifying former studies and measures | Survey of 282 wireless application developers in Europe and Israel Reviewed measures from previous works on MO and EO | MO is a one-dimensional construct comprising five distinct dimensions. MO is related to EO, inasmuch as the more entrepreneurial a new venture is, the more emphasis it puts on understanding the market and responding to those insights. |
Commercial knowledge as one of key competencies for obtaining a sustainable competitive advantage | Colombo and Piva (2008) | To deepen our knowledge of the relative strengths and weaknesses of academic start-ups (ASUs) compared with other new technology- based firms (NTBFs) | 4 theory-building case studies of Italian academic start-ups | Initial gaps in commercial knowledge and related difficulties in implementing effective strategies to close them may have negative consequences on firm growth |
Marketing knowledge and sales skills as key resources/competencies for sustainable growth | Van Geenhuizen and Soetanto (2009) | To explore the incidence and nature of obstacles to growth in a cross-sectional and longitudinal approach | 78 academic spin- offs incubated by Delft University of Technology (the Netherlands) Nature of the obstacles to growth collected by an ad hoc questionnaire | Lack of marketing knowledge and shortage of sales skills represent key obstacles to growth |
MO in academic spin-offs measured by a scale based on mixed building blocks from previous marketing studies | Abbate and Cesaroni (2014) | To analyse whether academic spin-off firms adopt a market orientation and the effect it produces on their economic and innovative performance | 74 university spin-off firms (Italian and Spanish) Ad hoc measuring scale | The generation and dissemination of information (on customers and competitors) directly affect firms’ ability to gain profits |
MO as mediator and moderator in the relationship between an entrepreneurial orientation and performance in university spin- offs | Migliori et al. (2019) | To examine the relationship between entrepreneurial orientation, MO and performance in USOs | 162 Italian USOs Ad hoc measuring scale | EO and MO in USOs occur within the same learning process Both support USO performance, but MO cannot occur without EO as an antecedent condition A significant portion of EO’s contribution to performance occurs through MO |
MO and business performance in university spin-offs
Research questions
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RQ1: Which dimensions of MO are relevant for USOs?
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RQ2: How do the different dimensions of MO affect USO business performance?
Research design
Section 1—Customer Intelligence Generation | |
Item 1.1 | We continuously work to better understand our customers’ needs for new products. |
Item 1.2 | We give close attention to after-sales service. |
Item 1.3 | We want the customer to think of us allies. |
Item 1.4 | We measure customer satisfaction systematically and frequently. |
Item 1.5 | We continuously try to discover additional needs of our customers that they might be unaware of. |
Item 1.6 | We incorporate solutions to unconscious customer needs in our new products and services. |
Item 1.7 | We brainstorm about how customer’s needs and preferences will evolve. |
Item 1.8 | We work with lead users-customers who face needs that eventually will be in the market – but do this months or years before the majority of the market. |
Section 2—Competitor Intelligence Generation | |
Item 2.1 | Employees throughout the organization share information concerning competitor’s activities. |
Item 2.2 | Top managers regularly discuss competitor’s strengths and weaknesses. |
Item 2.3 | We rapidly respond to competitive actions that threaten us. |
Item 2.4 | We try to anticipate the future moves of our competitors. |
Item 2.5 | We monitor firms competing in related products/markets. |
Item 2.6 | We monitor firms using related technologies. |
Item 2.7 | We monitor firms already targeting our prime market segment but with unrelated products. |
Section 3—Intelligence Dissemination | |
Item 3.1 | We have interdepartmental meetings to discuss market trends and developments. |
Item 3.2 | Marketing personnel spend time discussing customers’ needs with other functional departments. |
Item 3.3 | We share information about major market developments. |
Item 3.4 | When one function acquires important information about customers or competitors it shares that information with other functions. |
Section 4—Intelligence Integration | |
Item 4.1 | We have cross-functional meetings for the purpose of intelligence integration. |
Item 4.2 | We have cross-functional teams for important initiatives to ensure that all points of view are considered before decisions. |
Item 4.3 | We value collaboration in this business. |
Section 5—Inter-functional Coordination | |
Item 5.1 | The activities of the different functions in this business are well-coordinated. |
Item 5.2 | There is a high level of cooperation and coordination among functions in setting the goals for the organization to ensure response to market conditions. |
Item 5.3 | R&D and business development/marketing personnel frequently interact and communicate. |
Item 5.4 | R&D and business development/marketing personnel fully collaborate in establishing innovation projects’ goals and priorities. |
Analysis and results
Sample profiles
Validation of MO scale
Market orientation measures | Explained variance (%) | Cronbach’s alpha | Factor loadings | Mean | SD | |
---|---|---|---|---|---|---|
Factor 1. Dissemination, integration and inter-functional coordination (DIIC) | ||||||
Section 3 | Item 3.1 | 43.60 | 0.936 | 0.805 | 4.643 | 0.159 |
Item 3.2 | 0.671 | 4.443 | 0.150 | |||
Item 3.3 | 0.574 | 4.983 | 0.131 | |||
Item 3.4 | 0.521 | 5.461 | 0.138 | |||
Section 4 | Item 4.1 | 0.761 | 4.252 | 0.162 | ||
Item 4.2 | 0.703 | 4.904 | 0.166 | |||
Item 4.3 | 0.731 | 5.435 | 0.138 | |||
Section 5 | Item 5.1 | 0.743 | 4.939 | 0.140 | ||
Item 5.2 | 0.776 | 4.974 | 0.136 | |||
Item 5.3 | 0.613 | 5.217 | 0.148 | |||
Item 5.4 | 0.584 | 5.165 | 0.145 | |||
Factor 2. Competitor intelligence generation (CIGE) | ||||||
Section 2 | Item 2.1 | 9.10 | 0.875 | 0.646 | 4.70 | 0.141 |
Item 2.2 | 0.811 | 4.478 | 0.140 | |||
Item 2.3 | 0.650 | 4.139 | 0.134 | |||
Item 2.4 | 0.684 | 4.539 | 0.143 | |||
Item 2.5 | 0.809 | 4.974 | 0.142 | |||
Item 2.6 | 0.730 | 5.017 | 0.141 | |||
Item 2.7 | 0.687 | 4.487 | 0.155 | |||
Factor 3. Proactive customer intelligence generation (PCIG) | ||||||
Section 1b | Item 1.5 | 7.00 | 0.791 | 0.740 | 5.591 | 0.122 |
Item 1.6 | 0.674 | 5.426 | 0.129 | |||
Item 1.7 | 0.752 | 5.296 | 0.145 | |||
Item 1.8 | 0.555 | 5.139 | 0.138 | |||
Factor 4. Responsive customer intelligence generation (RCIG) | ||||||
Section 1a | Item 1.1 | 4.60 | 0.723 | 0.695 | 5.800 | 0.136 |
Item 1.2 | 0.772 | 5.417 | 0.139 | |||
Item 1.3 | 0.636 | 6.209 | 0.117 | |||
Item 1.4 | 0.445 | 4.470 | 0.164 |
Testing the impact of MO on business performance
Code | Variable | Operationalization |
---|---|---|
Dependent variable (business performance measure) | ||
PERF | Performance indicator | Log transformed ratio of firms’ sales revenues to number of employees |
Independent variables (market orientation factors) | ||
DIIC | Dissemination, integration and inter-functional coordination | The operationalization of the four independent variables is based on factor analysis (FA) outcomes. Each variable is calculated as the mean of all items included in the corresponding factor |
CIGE | Competitor intelligence generation | |
PCIG | Proactive customer intelligence generation | |
RCIG | Responsive customer intelligence generation | |
Control variables (firm-specific and environmental variables) | ||
INDU | Firm industry | Categorical variable on five levels: energy and environment, ICT, industrial, life science and social services |
LONG | Longevity | Number of years since foundation. Dummy variable: less or equal than 3 years (0), greater than 3 years (1) |
UNCE | Market uncertainty | Five-point Likert scale based on question: “Please define the degree of uncertainty of your reference market in the last 3 years” |
COMP | Competitive intensity | Five-point Likert scale based on question: “Please define the market competition level in the last 3 years” |
TURB | Technological turbulence | Five-point Likert scale based on question: “Please define the degree of technological turbulence in the last 3 years |
INNO | Innovation measure | Number of patents (registered and pending). Dummy variable: no patent (0), more than one patent (1). |
Estimate | SE | t value | ||
---|---|---|---|---|
Intercept | 3.358 | 0.887 | 3.784 | *** |
Independent variables | ||||
DIIC | 0.027 | 0.013 | 2.138 | * |
CIGE | - 0.024 | 0.017 | - 1.381 | |
PCIG | - 0.125 | 0.037 | - 3.397 | ** |
RCIG | 0.132 | 0.036 | 3.636 | *** |
Control variables | ||||
INDU_ICT | −1.36325 | 0.32587 | −4.183 | *** |
INDU_Industrial | 0.1184 | 0.37314 | 0.317 | |
INDU_life science | −0.89746 | 0.3769 | −2.381 | * |
INDU_Social | −0.74834 | 0.43726 | −1.711 | . |
LONG | 1.08481 | 0.25292 | 4.289 | *** |
UNCE | −0.1514 | 0.13376 | −1.132 | |
COMP | −0.2999 | 0.12964 | −2.313 | * |
TURB | 0.14956 | 0.14985 | 0.998 | |
INNO | −0.44572 | 0.25632 | −1.739 | . |
R2 | 0.4974 | |||
Adjusted R2 | 0.4114 | |||
F-statistic (dof: 13, 76) | 5.7860 | *** |