Born analytical or adopted over time? a study investigating if new analytical tools can ensure the survival of market oriented startups.

Abstract

This study investigates whether the prevalence of technological advances within quantitative analytics moderates the effect market orientation has on firm performance, and if startups can take advantage of the potential opportunities to ensure their own survival. For this purpose, the authors review previous literature in marketing orientation, startups, marketing analytics, and firm performance. These four bodies of literature are discussed and combined to design the current study. By gathering quantitative data from startups across Scandinavia, the authors find that the level of market orientation does not have a significant impact on startup’s performance in terms of profit, sales growth, nor return on investment. Additionally, the effect is not moderated by digital analytics. In fact, the authors find no evidence of varying levels of market orientation between industries, firm size or firm age, leading to the assumption that startups have not had enough time to truly implement or reap the benefits of market orientation. This can be explained by the short lifetime of startups, both in terms of short time scope and a lagged effect. As the success of startups is important for the modern economy, this study is important for startups as a support to battle the high odds of startup failure, and in turn help economic growth.