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The purpose of this study is to investigate the environmental conditions (i.e. competitive intensity) under which a pure strategy or an ambidextrous strategy of implementing responsive market orientations (RMOs) and/or proactive market orientations (PMOs) is more advantageous for firm’s performance.

Drawing upon the market orientation (MO) and strategy literatures, the authors test the study’s model empirically using a sample of 308 US-based firms operating in industrial markets. All measurement items are taken from the widely used maturity scale which has been confirmed in the literature.

The empirical results suggest that when the competitive intensity is high, pursuing a purity strategy of RMO while decreasing PMO is the best course of action. On the other hand, balancing between RMO and PMO (implementing a strategy of ambidexterity) can increase firm’s performance in a low competitive intensity environment.

This study aims to contribute to the existing MO literature in several ways: first, this study advances the MO literature by emphasizing the moderating role of competitive intensity on the effects of different MO strategies (purity or ambidextrous MO strategy); second, this study focuses on the firms operating in industrial markets and informs managers on how to adopt RMO and PMO under different level of competitive intensity; third, this study is the extended research of the prior study published in this journal (Wang et al., 2013), which examined the environmental antecedents of adopting RMO and PMO.

First, firms operating in industrial markets should increase RMO, while at the same time decrease PMO, in a highly competitive intensity environment. Second, companies should pursue both RMO and PMO at the same time in a low competitive intensity environment. Balancing between RMO and PMO can improve firms’ performance in a low competitive intensity environment.

This study contributes to the industrial business and marketing literature by sharpening the theoretical understanding of the impact of RMOs and PMOs on firm’s performance. It also offers practical insights to managers of industrial firms on when to adopt RMOs and/or PMOs under different levels of competitive intensity.

Recent studies have conceptualized market orientation into two distinct components, responsive and proactive market orientation. The purpose of this paper is to examine the environmental antecedents that lead to the adoption of a responsive or proactive market orientation.

Drawing upon the market orientation literatures, and using theory derived from environment strategy research as a starting point, a conceptual model is developed in which environmental factors are antecedent variables influencing the responsive and proactive market orientation. To test the conceptual model, data were collected from 308 companies across a wide range of industries.

The results show that responsive market orientation is positively related to market turbulence, technological turbulence and competitive intensity. On the contrary, proactive market orientation is negatively related to market turbulence, technological turbulence, and competitive intensity.

The paper makes a theoretical contribution in that it extends the market orientation literature and examines what environmental antecedents affect responsive and proactive market orientation. The paper also makes some managerial recommendations.