Improving market orientation: the theory of constraints-based framework

The existing literature affirms an improved payoff in business performance when a business unit displays a high degree of market orientation (MO). However, the literature is still scarce in providing market managers a systematic and effective mechanism for implementing and improving market orientation. In this paper, we propose a framework based on the theory of constraints (TOC) as a mechanism to achieve an optimal degree of market orientation and thereby accomplish the ultimate goal of maximising business (financial, employees and customers-related) outcomes. We discuss how three dimensions – methodology, measures and mindset – of the framework relate to market orientation using a well-known TOC case study. Finally, we conclude our paper with research directions for further strengthening the relationship between MO and TOC and making market orientation truly a firm-wide endeavour as intended and acknowledged in the marketing literature. This paper demonstrates that TOC (1) methodology ensures that manag...