International Firms’ Market Orientation and Use of Knowledge: Implications for Market Information Systems

Abstract

Efficient dissemination of market knowledge within the industrial firm is essential to global competitiveness. However, use of knowledge regarding firm’s foreign markets needs more attention in research. This paper extends the understanding of the industrial firm’s use of its stock of market knowledge. Relying on the knowledge-based view of the firm and the market orientation construct, a conceptual model and propositions are developed. These focus on associations between foreign subsidiary’s value-adding scope and its growth, and the moderating roles of market knowledge created locally, or somewhere else in the corporation. An understanding of the importance of knowledge of foreign markets and use situations will facilitate the design of market information systems that include creation and sharing of knowledge within international industrial firms.