The impact of a market-oriented strategy on business performance remains an open question. One of the reasons for this is that virtually all the work conducted in marketing has viewed market orientation as a reflective unidimensional structure. In this study we demonstrate that two measures of market orientation (i.e., reactive and proactive) are related, but essentially separate constructs. The results show that proactive market orientation has a significant and positive mediating effect between
resources and performance while reactive market orientation appears to be losing its effectiveness.