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Purpose

This study aims to suggest an integrative model to investigate design orientation by analyzing its links with market orientation and its ability to generate and maintain a competitive advantage and improve effectiveness.

Design/methodology/approach

The structural equation technique is used to test the research hypotheses based on data from the Spanish furniture and lighting industries. The data are obtained from the responses of 209 companies to a questionnaire targeted at design and marketing managers.

Findings

The results suggest that design orientation helps companies to gain competitive advantages in product differentiation and improve business effectiveness. The design orientation is stimulated by proactive market orientation and by marketing-design integration during the development of new products. The design orientation fully mediates the effect of proactive marketing orientation on perceived effectiveness.

Originality/value

This study uses a quantitative research approach to propose and test an integrative model that relates design orientation with the generation of competitive advantage in product differentiation and perceived effectiveness.

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