Market Orientation in the Mental Models of Decision Makers: Two Cross-Border Value Chains

Abstract

Purpose – The purpose of this paper is to determine whether predictions about different degrees of market orientation in two cross-border value chains also appear in the mental models of decision makers at two levels of these value chains.

Design/methodology/approach – The laddering method elicits mental models of actors in two value chains: Norwegian salmon exported to Japan and Danish pork exported to Japan. The analysis of the mental models centers on potential overlap and linkages between actors in the value chain, including elements in the mental models that may relate to the actors’ market orientation.

Findings – In both value chains, decision makers exhibit overlap in their views of what drives their business. The pork chain appears dominated by a focus on efficiency, technology, and quality control, though it also acknowledges communication as important. The salmon chain places more emphasis on new product development and good relations between chain partners.

Research limitations/implications – While confirming prior results regarding the role of competitive pressure, end-user heterogeneity/dynamism, regulations, and trade associations, theresults also generate new insights into the possible role of relational governance in promoting the market orientation of value chains.

Originality/value – This paper offers three novel ideas: using the concept of mental models as a possible mediator between factors that influence the degree of market orientation and market-oriented activity; using a laddering method to elicit mental models; and considering concepts shared among actors in a value chain as possible indicators of the degree of market orientation.

Keywords: Market Orientation, Value chain, Decision Making