Building Organizational Capabilities for Managing Economic Crisis: The Role of Market Orientation and Strategic Flexibility.

Grewal, Rajdeep; Tansuhaj, Patriya

Organizations frequently must cope with anomalous events, referred to as crises, that create high levels of uncertainty and are potential threats to the viability of an organization. The past decade, for example, has witnessed tremendous economic upheavals that have manifested in economic crises, such as the crashes of the Mexican peso, the Russian ruble, and the Brazilian real. Organizational crises have been extensively researched from divergent perspectives, including those of psychology (Halpern 1989), social polity (Weick 1988), and technological structure (Pauchant and Douville 1994). The authors add to this body of research by studying the relevance of market orientation and strategic flexibility in determining firm performance in developing economies and during periods of economic crisis; they investigate these relationships in the context of the recent Asian economic crisis.

ASIA; FINANCIAL crises; MARKET orientation; MARKETING strategy; CORPORATIONS; BUSINESS planning; STRATEGIC planning; INTERNATIONAL business enterprises; INDUSTRIAL research; MANAGEMENT

Journal of Marketing, 2001, Vol 65, Issue 2, p67

0022-2429

Academic Journal

10.1509/jmkg.65.2.67.18259