Benchmarking market orientation of banks in transitional markets

Abstract

PurposeThe purpose of this paper is to evaluate the market orientation of Slovenian banks in order to identify critical areas as well as potential barriers to market orientation. In addition, it is expected that use of an adapted methodological approach will improve relevance of managerial implications.Design/methodology/approachA modified questionnaire for assessment of market orientation in the banking context is introduced, including a market culture dimension and focusing on manifest organizational activities. Market orientation was assessed on samples of Slovenian and European banks, comparing the gaps between the two, using a benchmarking principle.FindingsThe results confirm the expected lack of market orientation in Slovenian banks. The lag of Slovenian banks is significant for dimensions of marketing intelligence generation and intelligence dissemination, while it is insignificant on responsiveness and marketing culture dimensions. The results also show that Slovenian banks are weaker at formal than at informal (i.e. cultural) elements of market orientation.Research limitations/implicationsThe paper explores the question of adapting a market orientation survey methodology to the specific context of banks in transitional markets. The small sample, however, restricts statistical examination of the validity, reliability and factorial structure of the measurement instrument.Practical implicationsStrategic and tactical activities in Slovenian banks are pointed out which require improvement efforts in order to become more strongly market‐oriented.Originality/valueThe paper fulfils an established need for comparative evaluation of the market orientation for banks in transitional markets. Methodologically, it builds on an expanded conceptualization of the construct and adapted measurement instrument that is focused on specific activities rather than on general managerial philosophy.