Absorptive capacity and market orientation in public service provision

Hodgkinson, Ian Richard and Hughes, Paul and Hughes, Mathew (2012) Absorptive capacity and market orientation in public service provision. Journal of Strategic Marketing, 20 (3). pp. 211-229. ISSN 0965-254X

Abstract

The application of market orientation to public organisations does not adequately account for the unique features of this context. Drawing on absorptive capacity literature, this is the first study to examine the role of the organisation's learning environment on the market orientation–performance interface for two opposing public management contexts. The research involved a national survey questionnaire to 1060 internal and external public leisure service providers in England. Empirical testing through structural equation modelling revealed that not all dimensions of market orientation are universally positive and marketing scholars should seek to examine and understand market orientation in the context of the organisation and its learning mechanisms, as absorptive capacity has clear and different moderation effects under different management contexts.