What comes first: the market or the product? Strategic orientations among start-ups in the Øresund Region

Sammanfattning: Market orientation and product orientation propose opposite approaches towards innovation and, thus, value-creation. This paper investigates the market-product orientation debate in the context of entrepreneurial start-ups. By studying strategic orientation from the perspective of start-up entrepreneurs, the research contributes to orientation theory, which has largely concentrated on processes found in mature and large companies. Data is collected from start-ups operating in the Øresund Region, representing a renowned European network of start-up hubs. A qualitative research, the investigation is based on a series of in-depth interviews with start-up entrepreneurs. The study shows that start-ups adopt a variety of strategic orientations; at the same time, however, elements of market orientation are central to companies in this nascent phase. Entrepreneurial start-ups demonstrate a commitment to value-creation, and understanding market demand is, therefore, a crucial activity. While orientation theory proposes a progression from strategic orientation to value-creation, by way of innovation; start-up entrepreneurs conceive innovation as an incidental process. Value-creation does not necessarily have to involve innovation. Findings, then, suggest that strategic orientation takes a different form in start-up companies compared to major theoretical conceptualisations. Predominant orientation theory concentrates on activities internal to organisations, such as inter-departmental communication and company culture. In their application of strategic orientations, however, entrepreneurial start-ups are more concerned with negotiating the external environment, especially exploring needs and refining solutions. Finally, as start-ups gain economic importance, this paper argues that through strategic orientation, the field of marketing has a direct impact on value-creation.