Mediating role of internal communications in market orientation and performance of mobile telecom firms: Evidence from Ghana

Adu Danso,Kofi Poku,Ahmed Agyapong,Joseph Amankwah-Amoah

doi:10.1080/23311975.2017.1403713

Adu Danso, Kofi Poku + Show 2 more

Open Access

https://doi.org/10.1080/23311975.2017.1403713

Copy DOI

Abstract

AbstractThe relationship between market orientation and firm performance and mediating influence of many external factors has been researched extensively across various contexts. However, little focus has been on mediating roles of internal organisational variables such as internal communication, which could potentially channel the effects of market orientation on performance. And this was examined using questionnaire survey of 95 managers from all the telecommunication companies in Ghana. Results show internal communication as a conduit, fully transmitting the positive effects of each dimension of market orientation on market performance. Therefore, enhancement of internal communication could offer unique capabilities for significant market performance.

Highlights

Telecommunication consumers in countries within the sub Saharan African continent rely mainly on mobile technology for their telecommunication services
Discussions and conclusion The study looked at how internal communication might act as a mediator in the link between market orientation and market performance in the telecommunication sector in Ghana
The study focused on the three dimensions of market orientation (Customer, Competitor orientations and Interfunctional Coordination) (Narver & Slater, 1990)

Summary

Introduction

Telecommunication consumers in countries within the sub Saharan African continent rely mainly on mobile technology for their telecommunication services. In Nigeria and Kenya as at 2013, 99 and 98%, respectively, of mobile subscribers were on prepaid (Ericsson Mobility Report Sub Saharan African, 2014) The implication of these outlined situations is that operators are compelled to implement strategies to retain their customers and that constant price wars continue to impact on their profit margins. In Ghana, there are six mobile network operators, namely MTN with market share of 45.63%, Vodafone with 21.97%, Tigo with 14.28%, Airtel with 12.35%, Glo with 5.17% and Expresso with 0.59% (National Communication Authority, 2014). These companies have adopted varied strategies in order to improve their market performance (market share). On the whole marketoriented firms have been found to respond better to their external environment and offer

Expresso

Conceptual background and hypothesis formulation

Findings

Conclusion