The Diffusion of Market Orientation Throughout the Organization: A Social Learning Theory Perspective

This study examines the diffusion of market orientation (MO) as a social learning process to acquire and transfer individual-level MO. Central to the diffusion are important work-group members, or envoys. Through their market-oriented action, top managers serve as market-oriented role models to two important types of observers in work groups-formal middle managers and work-group expert peers. In turn, these observers become top managers' envoys and role models of market-oriented behavior to frontline employees. Empirical results from a three-level data set from a Fortune 500 company support this perspective. While envoys who are neither market oriented nor identified with the firm are the least effective, envoys who are not market oriented but are strongly identified with the firm are also detrimental. Network size hinders the informal route of learning through expert peers but not the formal route through middle managers. By identifying who the important work-group envoys are and under what conditions certain envoys are likely to be most effective, this study helps managers select the best envoys to implement MO.