KDVSURYHGWKHSRVLWLYHFRUUHODWLRQEHWZHHQWKHRUJDQL]DWLRQ¶VSHUIRUPDQFHDQGLWVDELOLty to scan the
environment (Beal, 2000; Garg et al., 2003; Howell & Sheab, 2001; Kumar et al., 2001; McGee &
Sawyerr, 2003; Suh et al., 2004). Over time, existing norms become so embedded within policies and
processes that they create a distinct organizational myopia (Huber & Daft, 1987; Ouchi & Wilkins,
1985) &RQVHTXHQWO\ WKH RUJDQL]DWLRQ¶V SHUFHSWXDO ILOWHU EHFRPHV LPSHUYLRXV WR H[WHUQDO FKDQJH
(Lorsch, 1985; O'Reilly, 1983; Reimann & Wiener, 1988; Sathe, 1983). Thus, it is critical that an
organization be aware of the nature of the environment that it currently faces or anticipates facing.
Most researchers agree that environmental analysis should be an independent staff function in the top
levels of an organization's hierarchy (Smeltzer et al., 1988). As Hambrick (1981) has noted, an
³RUJDQL]DWLRQ¶V H[HFXWLYHs FDQ RQO\ DFW RQ WKRVH SKHQRPHQD WR ZKLFK WKHLU DWWHQWLRQ LV GUDZQ ́
(p.299). Hence, the strategy literature considers scanning as the very stimulus that initiates the
organizational adaptation process (Hambrick, 1981; Pfeffer & Salancik, 1978).
Kohli and Jaworski (1990) found that the role of senior management emerged as one of the most
important factors in fostering a market orientation. The critical role of top managers in fostering a
market orientation is also reflected in the literature. For example, Webster (1988) asserted that a
PDUNHWRULHQWDWLRQRULJLQDWHVZLWKWRSPDQDJHPHQWDQGWKDW³FXVWRPHU-oriented values and beliefs are
uniquely the responsibility of top management ́ (p.37). Likewise, Felton (1969) argued that the most
important ingredient of a market orientation is an appropriate state of mind, and that it is attainable
RQO\LI³WKHERDUGRIGLUHFWRUVFKLHIH[HFXWLYHDQGWRS-echelon executives appreciate the need to
GHYHORSWKLVPDUNHWLQJVWDWHRIPLQG ́ S ,QRWKHUZRUGVWhe commitment of top managers is an
essential prerequisite to a market orientation.
5.4.3 ORGANIZATION- EXPLORATION = ORGANIZATIONAL CREATIVITY
It has been suggested that being market-oriented (focusing on current clients and identifying potential
new opportunities) may detract from innovativeness (Berthon et al., 2004)³$VLPSRUWDQWDVPDUNHW
orientation and entrepreneurship are, they must be complemented by an appropriate climate to
produce a learning organization ́(Slater & Narver, 1995, p.63). Frosch (1996) has shown that
excessive client orientation leads to shortsighted research and development, and Bennett and Cooper
(1979) have criticized client orientation for leading to incremental and trivial new product
development. Jaworski and Kohli (1996) QRWHGWKDW³WKHUHLVOLWWOHLQWKHOLWHUDWure on the effects of a
PDUNHW RULHQWDWLRQ RQ WKH PHWULFV UHODWHG WR LQQRYDWLRQ ́ (p.129). They also cautioned that an
overemphasis on customers may hamper innovation and research and development activities and
damage a firm's ability to introduce innovative products in the market (Zhou et al., 2005). The