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What comes first: the market or the product? Strategic orientations among start-ups in the Øresund Region

Muscat, Nathanael LU and Ivanov, Ivaylo LU (2016) BUSN39 20161
Department of Business Administration
Abstract
Market orientation and product orientation propose opposite approaches towards innovation and, thus, value-creation. This paper investigates the market-product orientation debate in the context of entrepreneurial start-ups. By studying strategic orientation from the perspective of start-up entrepreneurs, the research contributes to orientation theory, which has largely concentrated on processes found in mature and large companies. Data is collected from start-ups operating in the Øresund Region, representing a renowned European network of start-up hubs. A qualitative research, the investigation is based on a series of in-depth interviews with start-up entrepreneurs. The study shows that start-ups adopt a variety of strategic orientations;... (More)
Market orientation and product orientation propose opposite approaches towards innovation and, thus, value-creation. This paper investigates the market-product orientation debate in the context of entrepreneurial start-ups. By studying strategic orientation from the perspective of start-up entrepreneurs, the research contributes to orientation theory, which has largely concentrated on processes found in mature and large companies. Data is collected from start-ups operating in the Øresund Region, representing a renowned European network of start-up hubs. A qualitative research, the investigation is based on a series of in-depth interviews with start-up entrepreneurs. The study shows that start-ups adopt a variety of strategic orientations; at the same time, however, elements of market orientation are central to companies in this nascent phase. Entrepreneurial start-ups demonstrate a commitment to value-creation, and understanding market demand is, therefore, a crucial activity. While orientation theory proposes a progression from strategic orientation to value-creation, by way of innovation; start-up entrepreneurs conceive innovation as an incidental process. Value-creation does not necessarily have to involve innovation. Findings, then, suggest that strategic orientation takes a different form in start-up companies compared to major theoretical conceptualisations. Predominant orientation theory concentrates on activities internal to organisations, such as inter-departmental communication and company culture. In their application of strategic orientations, however, entrepreneurial start-ups are more concerned with negotiating the external environment, especially exploring needs and refining solutions. Finally, as start-ups gain economic importance, this paper argues that through strategic orientation, the field of marketing has a direct impact on value-creation. (Less)
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author
Muscat, Nathanael LU and Ivanov, Ivaylo LU
supervisor
organization
course
BUSN39 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
Market Orientation, Product Orientation, Innovation, Start-ups
language
English
id
8878185
date added to LUP
2016-06-09 14:56:44
date last changed
2016-06-09 14:56:44
@misc{8878185,
  abstract     = {Market orientation and product orientation propose opposite approaches towards innovation and, thus, value-creation. This paper investigates the market-product orientation debate in the context of entrepreneurial start-ups. By studying strategic orientation from the perspective of start-up entrepreneurs, the research contributes to orientation theory, which has largely concentrated on processes found in mature and large companies. Data is collected from start-ups operating in the Øresund Region, representing a renowned European network of start-up hubs. A qualitative research, the investigation is based on a series of in-depth interviews with start-up entrepreneurs. The study shows that start-ups adopt a variety of strategic orientations; at the same time, however, elements of market orientation are central to companies in this nascent phase. Entrepreneurial start-ups demonstrate a commitment to value-creation, and understanding market demand is, therefore, a crucial activity. While orientation theory proposes a progression from strategic orientation to value-creation, by way of innovation; start-up entrepreneurs conceive innovation as an incidental process. Value-creation does not necessarily have to involve innovation. Findings, then, suggest that strategic orientation takes a different form in start-up companies compared to major theoretical conceptualisations. Predominant orientation theory concentrates on activities internal to organisations, such as inter-departmental communication and company culture. In their application of strategic orientations, however, entrepreneurial start-ups are more concerned with negotiating the external environment, especially exploring needs and refining solutions. Finally, as start-ups gain economic importance, this paper argues that through strategic orientation, the field of marketing has a direct impact on value-creation.},
  author       = {Muscat, Nathanael and Ivanov, Ivaylo},
  keyword      = {Market Orientation,Product Orientation,Innovation,Start-ups},
  language     = {eng},
  note         = {Student Paper},
  title        = {What comes first: the market or the product? Strategic orientations among start-ups in the Øresund Region},
  year         = {2016},
}