IIs there a profit premium for market-oriented firms? A panel data investigation

Eelonora Bartoloni, Maurizio Luigi Baussola

Research output: Working paper


This paper provides an empirical investigation of the impact of market orientation on firms’ economic performance during the period 1998-2012 using a panel of Italian manufacturing firms. We introduce a dynamic concept of market orientation, in that we define a market-oriented firm as one that persistently under- takes product and marketing innovation, while at the same time introducing organisational changes and training efforts to man- age and improve its knowledge asset over the long term. The conceptual framework within which we have developed the anal- ysis considers both the management approach, from which we take the notion of a firm’s market orientation to innovation, and the economics of innovation approach. The results show that be- ing a market-oriented firm significantly affects profitability, in a framework in which this latter is simultaneously estimated with productivity, thus allowing for more precise estimates of the re- lationship being tested for
Original languageEnglish
PublisherVita e Pensiero
Number of pages33
ISBN (Print)9788834335796
Publication statusPublished - 2018


  • market orientation
  • product innovation


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