Moderating effects on the market orientation and strategic performance relationship in public housing

• Purpose - The purpose of this study is to examine how external factors moderate public housing companies’ market orientation and strategic performance relationship.Design/methodology/approach – The quantitative method was applied to data from a survey sent to 289 public housing companies in Sweden. A hierarchical, multicollinearity diagnostics–moderated regression analysis is used to test the research hypotheses.Findings – The results reveal moderating factors. The companies take several initiatives to inform themselves about customers’ needs and distribute the information within the company, but economic conditions, as well as market and technological turbulence in the municipalities, moderate the relationship between market orientation and strategic performance. Economic conditions make it difficult for public housing companies to strategically act based on market needs when making decisions and planning construction strategies (strategic performance).Research limitations/implications – This study is limited by focusing on public housing companies, a sector that differs radically from the open market. The study highlights the effects of moderating factors that are important for companies’ strategic performance and long-term construction strategies. From this limited focus, researchers might use the results to compare both similar and different market situations.Practical implications – The results of the study are useful for companies facing a similar market situation of external moderating constraints. The result might be used in future research related to the area in focus.Originality –This research adds new knowledge to market research by including the impact of economic conditions, which provide insight into how to develop and use market knowledge in real estate and public housing markets.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Keyword

Market orientation

moderating

strategic performance

public housing

construction strategies

Publication and Content Type

ref (subject category)

art (subject category)