In organizational behavior and industrial psychology, proactivity means anticipatory behavior, taking control of situations and initiating actions to make changes. A proactive stance, as opposed to a reactive one, involves acting in advance of a future situation rather than simply responding to a situation that has already happened. Proactivity is about initiating change within the organization. A proactive stance means solving a problem as soon as you are aware of it, whether within your own organizaton or from a competitor. Show
Proactive BehaviorOrganizations adopt either proactive or reactive behaviors in response to events. For example, a company that takes a proactive stance would recall a faulty line of products rather than wait for customers to complain and deal with the issue down the road. Exmark Manufacturing is an example of a company that implemented a large-scale recall of a product by directly contacting customers instead of waiting for the customers to come forward. Proactivity is an important habit for businesses to develop and requires businesses to adopt a strategic approach to decision making. Reactive behavior results in losing business and having to work even harder to get new business or rebuild broken relationships with consumers. Changing From a Reactive to a Proactive BehaviorMost companies repeatedly take the same actions because these actions have worked in the past or represent the traditional approach to responding to adverse business conditions. Instead of following the same pattern, an organization can proactively change tactics, assess the conditions as they occur and develop new processes based on these conditions. To successfully implement proactive strategies, the organization will need to look at past performance and analyze results on a frequent daily or weekly basis. A proactive stance also requires both foreknowledge and creativity. Understanding industry trends and paying attention to problems competitors have faced help companies build a proactive stance. Being reactive, especially when another company has set an example of what not to do, suggest to the public and potential customers that you don't care to address the problem. Adopting the Proactive StanceAn organization’s behaviors, successes and failures are the direct result of decisions. After establishing what factors contribute to the success of the business, the organization can start to put things in perspective, acting quicker and independent of what other businesses do. Knowledge about the internal operations and how these operations impact profitability and market position will enable the organization to respond to changing circumstances while still focusing on business objectives. With the assessment of the information from previous decisions and actions, the company is able to adopt a proactive stance. Ideally, a company is able to foresee potential problems and develop the proactive stance before a problem arises. Proactive Stance ExamplesThe Toro Company, Exmark Manufacturing and Dixon Industries Inc. collectively recalled 62,000 faulty commercial riding mowers. These companies worked directly with their dealers, distributors and customers during the recall campaign to proactively fix or replace the affected units already on the market. Nike is another example of a company that took a proactive stance, responding to criticisms about the labor conditions in the company´s supply chain. Kingfisher, a company that owns the British chain B&Q, has successfully implemented a proactive stance on waste reduction, chemicals and green issues. When companies voluntarily take a proactive stance, they provide goodwill among consumers. This retains the good reputation the company worked hard to build and retains customers the company spend time and money to acquire. It is easier to keep customers and get new ones when proactive stance practices are adopted.
 Under a Creative Commons license Open access Highlights• Proactive competitor orientation is an understudied dimension of market orientation. •Proactive competitor orientation plays a critical role in innovation performance. •Technology orientation mediates proactive competitor orientation and performance. AbstractThe concept of market orientation comprises four components: customer and competitor orientations, each with a proactive and responsive dimension. Studies have considered both responsive and proactive customer orientation. Competitor orientation, however, has been investigated more narrowly. Research has focused specifically on its responsive dimension, a firm's posture of quickly responding to its competitors' actions and their offerings; but has largely disregarded proactive competitor orientation, a firm's posture towards altering the market's competitive behavior in its favor. This study investigates the role of responsive and proactive competitor orientation on influencing innovation and firm performance, as well as the mediating effects of technology and learning orientation. Utilizing a unique dataset that combines primary and time-lagged secondary data from 306 firms, we find that both responsive and proactive competitor orientation are observable drivers of performance in the market, but in notably different ways. Proactive competitor orientation drives innovation performance, directly and through technology orientation. Responsive competitor orientation, instead, enhances firm performance through learning orientation. By providing insights about the proactive side of competitor orientation, this study supplements and completes the so called “market orientation matrix”. This framework provides guidance for leaders to develop and manage a practical application of, and future research on market orientation. KeywordsInnovation performance Market orientation Competition Proactive competitor orientation Responsive competitor orientation Strategic orientation Cited by (0)© 2022 The Authors. Published by Elsevier Inc. Why should companies try to adopt a proactive stance on marketing?A proactive stance allows a company to let the market determine prices for its products.
How does the microenvironment of a company differ from its macro environment?The micro environment is specific to a business or the immediate location or sector in which it operates. In contrast, the macro environment refers to broader factors that can affect a business. Examples of these factors include demographic, ecological, political, economic, socio-cultural, and technological factors.
How does the microenvironment of a company differ?The following are the major difference between micro and macro environment: The microenvironment is the environment which is in immediate contact with the firm. The environment which is not specific to a particular firm but can influence the working of all the business groups is known as Macro Environment.
Which generational group most likely blends the offline and online world seamlessly?But for Gen Z, this is nothing new—they've never drawn a distinction between the physical and the digital world. For them, whether online or offline, the critical element is that you can seamlessly move between each.
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To be successful, why should companies try to adopt a proactive stance on marketing?
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