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Do Hi-tech Firms Need to Be Market Oriented?

Technology intensive firms have consistently argued that managing these firms is different from managing in other business sectors. Because of rapidly changing technologies and markets, management must focus on the technologies and their development over attention to market needs. In fact, too much market responsiveness will doom firms to losing their technology lead. While many engineers-cum managers who are at the helm of technology intensive firms and are often the inventor-entrepreneur would like to believe that it is their inventive genius that will win markets (“If I build it, they will come”), there is lots of evidence that even technologically superior ideas can lose out to better marketed ones (the classic –beta vs. VCR). On the other hand, Christensen and Raynor (2003) point out that focusing on current markets can relegate market winners to market losers because they stake their claim on current customers while competitors find new technologies and new markets as a breeding ground for future market dominance.