FIT Between Market Orientation and Board Structure as A Contingency Requirement for Superior Firm Performance

Abstract

Research into the effects of market orientation on firm performance has produced mixed results. Prior research in marketing has paid little attention to a legitimate governance issue such as "what is an optimal board structure to enhance the market orientation behavior of firms." We develop a contingency model that attempts to explain the mixed findings. We propose that fit between market orientation and board structure produces superior performance in market-oriented firms.