Adoption Of Market Orientation Research Articles

Reducing Salesperson Turnover Intentions via Organizational Market Orientation and Selective Hiring: A Job Demand-Resources Approach

ABSTRACT Purpose This study is designed to respond to repeated calls for research on sales person retentionby building upon a mature research stream to identify ways to reduce turnover in boundary spanning employees and the resultant effect it has on organizational productivity. Specifically, this research draws on the Job Demands-Resources model to explore the effect of employee perceptions of firm market orientation as a way to reduce role stressors and subsequently turnover intentions. It also looks at employee traits that may serve as a buffer to the role stress to turnover intentions link and can be part of the hiring selection process (in this case grit). In so doing, this research uses a sample of early career salespeople to examine the effects of a firm’s market orientation (MO) and selective hiring for specific traits (level of grit) on a salesperson’s intention to quit using Job Demand-Resources as a framework. Design/Methodology/Approach The authors utilized a questionnaire to collect data from a sample consisting of 260 respondents who were employed full-time and worked in either B2B or B2C sales as boundary-spanning employees. The measures utilized in this study have been used in previous research and have demonstrated acceptable reliability and validity. Analysis of the latent constructs was conducted using PLS-SEM. The model was assessed as specified in the hypotheses and was estimated using the PLS algorithm to obtain path coefficient estimates. Findings Findings suggest that organizations can benefit internally from strong MO by mitigating stressors placed on boundary-spanning employees. Those who perceived strong MO in their employer experienced more clearly defined roles, which led to decreased role ambiguity. These increased levels of job satisfaction, which reduced turnover intention. Additionally, Grit appears to only moderate the link between role conflict and job satisfaction, which suggests that grit can serve as an additional resource salespeople can tap into in response to the demands of role stressors thereby reducing their likelihood of leaving their positions. Research Implications In this research, inclusion of market orientation as an antecedent to role stressors in the Job Demands-Resources model expands the conceptualization of the construct as it relates to salespeople in that market orientation is something the firm can control directly. This opens research opportunities to use this model in the sales literature. In addition, the job-demands-resources model expands the role of grit beyond positive psychology to be viewed as a resource in stressful situations and puts the role of grit into a theoretical framework for use in business contexts. As such, the current work suggests that the grit scale can be used to replace measures used for similar constructs such as tenacity. Practical Implications This research suggests that role ambiguity can be reduced by the presence of a market orientation. This reduction in role ambiguity leads to an increase in job satisfaction which leads to reduced turnover intention. Thus, this study indicates that there may be a cost-saving benefit (e.g. recruiting and retention efforts, lost sales, etc.) that accrues to firms with a market orientation due to reduced salesperson turnover via role perceptions. This supports that the idea that organizations can benefit from market orientation not only externally, but also internally in terms of mitigating stressors placed on boundary-spanning employees. Therefore, companies should push for adoption of market orientation in order to alleviate some key role stressors placed on their salespeople in addition to the already established benefits from external customers. The link between grit, job satisfaction, and turnover intentions is another positive finding. As expected, job satisfaction helps reduce turnover intentions; however, the relationship is moderated by grit in such a way that people with higher grit show a weaker link between job satisfaction and turnover intentions while those with lower levels of grit show a stronger link between job satisfaction and turnover intentions. This raises human resource issues in the hiring process: human resource managers should work to identify salespeople with high levels of grit in order to better minimize turnover intentions given the cost of turnover to organizations. Originality This research expands existing research by examining the effects of a firm’s market orientation (MO) and selective hiring for specific traits (level of grit) on a salesperson’s intention to quit using Job Demand-Resources as a framework Combining these two literature streams – market orientation and salesperson grit – is novel and will inspire new thinking and foster new insights. This study serves as a starting point for future research to examine firm controllable resources (market orientation) along with employee traits that can act as a buffer (grit) when resources are scarce.

Internal market orientation adoption and new service development (NSD): gearing up the internal performance of NSD teams

PurposeThis paper reports on the impact of perceived resource adequacy (PRA) and competence (PRC) on new service development (NSD) teams’ internal performance (IP). This study aims to explore the indirect effect of internal market orientation (IMO) adoption, as a dynamic capability, on both PRA and PRC through the shaping of the emerging dynamics within NSD teams.Design/methodology/approachUsing a hierarchical research design, the authors use a meso-theory approach to test a path-analytic framework against 116 NSD managers (offering data at the macro- or organisational level) and 543 NSD team members (offering data at the micro- or team level).FindingsBoth PRA and PRC are important in explaining NSD teams’ IP at the organisational level, though their explanatory power varies. The adoption of IMO is also an important antecedent to this factor through the (indirect) effect on the team climate and degree of integration.Research limitations/implicationsIMO is an important dynamic capability that allows management to transform the mindset of employees, even if they do not directly interact with customers. In NSD efforts, this reflects on the team’s perceptions of the adequacy of the resources they have to deliver the project through the managerial interventions at the team level, which (mainly) explains the team’s IP.Practical implicationsAdopting an IMO allows the development of a dynamic capability that carries wider benefits for the service organisation, as this has positive implications not just for frontline employees. Specifically, NSD efforts are likely to become more resource-efficient as a result of IMO adoption because of the interventions of management during the development effort.Originality/valueThis empirical study is the first to test the impact of IMO adoption as a dynamic capability and in a context other than frontline employees from a meso-theory perspective. This allows considering the different effects at the appropriate levels (macro and micro), thus enabling a more accurate definition of the mechanism through which companies benefit from IMO adoption.

Competing in an emerging market: antecedents and consequences of market orientation and the role of environmental factors

Adoption of market orientation is an investment decision involved with benefit and cost considerations. How environmental factors influence the adoption of market orientation has received scant attention in the literature. This study fills the void by investigating the environmental antecedents to market orientation. In addition, the research explores the role market orientation and customer satisfaction play for firms operating in an emerging market in search of growth and prosperity. Based on data collected from India, one of the BRIC nations and an important emerging market, results show that turbulent and dynamic market conditions foster an adoption of market orientation, which leads to high levels of customer satisfaction, and in turn leads to customer loyalty. Managerial implications and future research directions are discussed.

Human Capital, Organizational Orientations and Performance: Evidence From the Restaurant Industry

ABSTRACTThe study examines how human capital combines with and influences organizational orientations to determine performance. Specifically, this study investigates small restaurant businesses’ ability to effectively exploit intangible resources and capabilities, rather than tangible resources, in order to produce sustainable competitive advantage. A structured questionnaire was used to survey owners/managers of small independent restaurants in the United States. The results demonstrate that human capital, market orientation and entrepreneurial orientation serve as intangible resources and capabilities that can augment the competitive position of independent restaurants, and thereby improve performance. Human capital also combines with and influences the adoption of market orientation and subsequent performance.

Market Orientation and Kaizen Readiness in the Automobile Dealership Context

IntroductionWith the accumulation of research on market orientation since the 1990s (Kohli & Jaworski, 1990; Narver & Slater, 1990), a consensus seems to be emerging regarding the impact of market orientation. Briefly put, it has been indicated that market orientation has a positive impact on performance through innovation, perceived quality, and loyalty (Kirca, Jayachandran, & Bearden, 2005). However, as most prior studies assume that the unit of analysis is the SBU (Kohli & Jaworski, 1990; Narver & Slater, 1990), limited attention has been paid to the nature of market orientation in the context of service where direct interaction with customers is required (Kosuge, 2015). This paper empirically examines the impact of market orientation in such a context.Specifically, this paper focuses on continuous improvement, or kaizen,1 which is a key concept in operations management, to test the hypothesis that market orientation leads to continuous improvement. The basis of this hypothesis is the idea that a value system that emphasizes sensing and responding to existing and latent customer needs promotes opportunities to improve existing work methods and tools. This hypothesis is based on the findings of Kosuge and Takahashi (2016), who considered the process through which a Japanese automobile dealership company developed a market orientation and is also supported by existing literature. If this hypothesis is true, it would suggest that market orientation is far more than a in the service context (Kirca et al., 2005).Market Orientation and Kaizen ReadinessKosuge and Takahashi (2016) describe a case of an automobile dealership company that made a long-term shift from a traditional selling orientation dependent on individual skills to a process-focused market orientation. An overview of this case is provided below.• The market orientation program focuses on processes; moreover, the team was perceived by salespersons as threatening their concept of themselves as lone wolves. It was thus rejected by most of them.• However, among the 54 shops, three shops that were performing poorly adopted market orientation. Subsequently, these shops began a continuous reassessment of their existing work methods and tools and devised various improvements. As the staff accumulated successful experiences, shops that had merely been groups of individualistic salespersons began to function as a single organization.• The top management selected managers from these three shops and modified the existing evaluation and reward system to spread the form of market orientation within the organization.It is particularly noteworthy that at these shops, the adoption of market orientation engendered values geared toward sensing and responding to customers' needs; this consequently promoted a continuous update of operations. For example, in the past a particular salesperson had been assigned to each customer. The shops moved to a system whereby a sales team, and not just a particular salesperson, would be responsible for taking care of the customer. Further, follow-up cards were employed in the past to monitor and control such customer contact activities, reminding them to ensure that their car was inspected. These follow-up cards were refined as tools for salespersons to ensure dialogue with their supervisors about customers.Kaizen, or continuous improvement, can be viewed as a learning process, so the above findings are consistent with prior studies that highlight learning orientation as being a mediator between market orientation and performance. For example, Slater and Narver (1995) stated that market orientation is the principal cultural foundation of the learning organization. In other words, a market-oriented organization will create a cultural framework that leads to the development of learning orientation (Farrell, 2000).Based on the above observation and discussion, rather than the idea of market orientation being a hygiene factor in the service context (Kirca et al. …

The effects of perceived value on loyalty: the moderating effect of market orientation adoption

This paper aims to identify the moderating effect of service firms’ adoption of market orientation on key variables of consumer behavior, namely perceived value and loyalty. The study took a business-to-customer perspective. First, the adoption of market orientation was measured, from the firm’s point of view. Second, customer perceptions were analyzed, using the two variables perceived value and loyalty. The sample comprised 100 service firms and 572 of their customers. The present work provides original insights, identifying that the effect of perceived value on loyalty depends on other variables external to the consumer, such as the market orientation approach.

Market orientation adoption strategies for small restaurants: a study in the Eastern Sri Lanka

The main aim of the study is to investigate the adoption and application of market orientation by small restaurants in the Eastern Sri Lanka. In order to achieve this aim, 21 small restaurants were drawn from the Eastern part of Sri Lanka. Findings suggest that small restaurants are unable to adopt market orientation strategies. Components of market orientation such as customer orientation, competitor orientation and inter functional coordination are with insignificant correlation and hence, the components of market orientation are not adopted by small restaurants. Monitoring the changes in the customer needs is essential for the success of these firms in the industry. Though these firms are small, competitors’ analysis has to be done and the results should be used as input for the development of competitive strategy. Inter functional coordination is also playing major role in this business to become market oriented. DOI: http://dx.doi.org/10.4038/jm.v8i1.7550 Journal of Management 2013 8(1): 14-26

Does a Democratic Management Model Enhance Performance through Market Orientation? Empirical Evidence from the Mondragon Industrial Group

A management model is a set of choices made by a firm’s leadership regarding how objectives are defined, efforts are motivated, activities are coordinated and resources allocated, in short, regarding how the company will be run. Just as other types of businesses do, cooperatives need to create sustainable competitive advantages by adopting market-oriented management approaches. Mondragon Corporation achieves this in an alternative way relative to the conventional organizational and governance model, combining commitments to democratic principles, solidarity and competitiveness. Inspired by changes in the expectations of worker-members, new technological capabilities and the strategies of new competitors, Mondragon Corporation has designed a distinctive management model that can itself be a key driver of its competitiveness. The research presented here is focused on market orientation (MO), its relationships with a set of internal factors found in Mondragon cooperative enterprises, and their subsequent impact on business performance. Empirical results suggest that (1) Mondragon’s management model increases organizational commitment, facilitating the adoption of MO and (2) a positive impact of MO on business performance. Practical and research implications are discussed.

Performance Outcome of Market Orientation Behaviour among Botswanas’ Small Service Firms

A vast majority of the stream concerning Market Orientation (MO) consequences have concentrated on its relationship with business performance (Narver and Slater,1990;Jaworski and Kholi,1993;Kuada and Buatsi,2005;Pelham,2000 and Dwairi et al.,2007).Few works have however addressed other possible consequences, such as the effect of MO on the operational level of employees (Jaworski and Kholi,1993;Ruekert,1992;Zebal & Goodwin.,2011),or the effect of MO at a customer level (Krekapa et al.,2003;Zebal & Goodwin.,2011).This limited amount of research is somewhat surprising given that employees ‘attitudes and behaviours, and customer satisfaction (non economic performance),as well as business performance (economic performance) are central pillars that have been widely recognized in the conceptualization of MO (Kholi and Jaworski,1990 and Narver and Slater,1990).The effects of MO on both job related attitudes have been studied by relevant literature. The studies conducted by Jaworski and Kholi (1993),Marandu & Themba.,(2012) and Jones et al.,(2003) are some examples that underline the positive consequences of MO on these job related employee attitudes. The multivariate analysis techniques (MANOVA) was used in this study to explicate the nomological web between overall market orientation and economic and noneconomic performance of small service firms.This study contributes to that body of literature by investigating the consequences of market orientation in Botswana. The results successfully replicate the Jaworski and Kholi findings, within the Botswana’s environment. The findings also provide evidence that performance outcomes can be enhanced by the adoption of market orientation in Botswana.

A Factorial Analysis Of The Barriers To Market Orientation Adoption Among Small And Medium Enterprises (SMEs) In A Developing Country

The purpose of the study was to examine the barriers of market orientation by SMEs in South Africa. Data were collected using the personal face-to-face interviews with the use of a structured questionnaire. A total of 350 SMES were selected randomly and visited within the various municipal areas in South Africa. Exploratory factor analysis was used to identify the dimensions using the principal component analysis. A four-factor structure emerged accounting for 62% of total variance. The reliability analysis, reflected coefficient values ranging from 0.743 to 0.893, indicating satisfactory internal consistency amongst variables within each dimension. By analysing the barriers, the adoption of market orientation among SMEs, managers, and marketers are presented with recommended strategies and implications on how to embrace market orientation for effective business performance. Marketing capacities of SMEs may be strengthened through the implementing of market orientation. SMEs are vital for socio-economic progress for developing economies. Effective implementation of market orientation can assist SMEs growth and development.

Market Orientation Adoption among Rural Tourism Enterprises: The Effect of the Location and Characteristics of the Firm

This paper highlighted the importance of market orientation as a strategy for the success of rural tourism enterprises. The purpose of the work was to identify an explanatory model for the market orientation adopted by rural tourism enterprises. The explanatory factors identified were as follows: category; information and communications technology use; and the entrepreneur’s gender. It was also found that the location of the enterprise relative to its competitors may also influence market orientation adoption. A spatial econometric model was used that took into account the characteristics of the rural tourism enterprise and its physical location, in terms of their effect on market orientation adoption. Copyright © 2013 John Wiley & Sons, Ltd. Received 27 February 2013; Revised 14 July 2013; Accepted 23 July 2013

Determinants of Market Orientation Adoption among Small and Medium Enterprises (SMES) in South Africa

Purpose: The purpose of the study is to examine the determinants and barriers of market orientation by SMEs in South Africa. Methodology: Data was collected using the personal face-to-face interviews with the use of a structured questionnaire. A total of 350 SMES were selected randomly and visited within the various municipal areas in Vaal Triangle. These were obtained from Gauteng Enterprise Propeller (GEP) and Small Enterprise Development Agency (SEDA). Seventy-seven SMEs refused to participate resulting in 273 usable questionnaires. Exploratory factor analysis was used to identify the dimensions using the principal component analysis. Findings: A four-factor structure accounting for over 62,14% of total variance was established and discussed. The reliability analysis, reflected coefficient values ranging from 0.743 to 0.893 indicating satisfactory internal consistency amongst variables within each dimension. Implications: By analysing the determinants the adoption of market orientation among SMEs, managers and marketers are presented with recommended strategies and implications on how to manipulate market orientation for effective business performance. Marketing capacities of SMEs may be strengthened through implementing market orientation. Originality: SMEs are vital for socio-economic progress for developing economies. Effective implementation of market orientation can assist SMEs’ growth and development. DOI: 10.5901/mjss.2013.v4n6p55

Trustee characteristics, stewardship, and charity CEO employment situations as determinants of the adoption of market orientation

Trustee characteristics, stewardship, and charity CEO employment situations as determinants of the adoption of market orientation

Balanced market orientation: qualitative findings on a fragile equilibrium

Purpose – The paper focuses on services marketing implementation synthesizing previous knowledge from the fields of internal and external marketing. Although academic debate over the modeling of internal and external market orientation has lately emerged, services marketing literature lacks a relevant theoretical foundation.Design/methodology/approach – Following a qualitative research design applied to the tourism sector, in‐depth interviews were conducted at three different levels (managers, employees and customers). In total, 37 hotel managers, 46 employees and 42 guests participated in the process of capturing the essence of the fragile equilibrium between internal and external marketing adoption.Findings – Findings from the content analysis were consistent with the literature, unveiling an important number of elements, which formulate the components of the balanced market orientation, namely: market orientation adoption, internal marketing implementation and systematic monitoring of the service deliv...

Market Orientation as a Strategy for the Rural Tourism Sector

The aim of the present work is to ascertain the importance of market orientation as a business strategy within the rural tourism sector. To this end, we took a business-to-customer (B2C) perspective. First, the adoption of market orientation was measured from the firm’s point of view. Second, tourist perceptions were analyzed using two variables, perceived value and behavioral intentions. The sample consisted of 100 rural tourism enterprises and 572 of their customers. The findings reveal that the market orientation undertaken by the firm has a direct effect on its outcomes (its financial results, the improvements to the rural destination, and the more personal, intangible impact on the owner-manager) and on perceived value; and that perceived value has a direct effect on consumers’ behavioral intentions toward the firm.

Validation of a market orientation adoption scale in rural tourism enterprises. Relationship between the characteristics of the enterprise and extent of market orientation adoption

Market orientation (MO) is considered as a competitive strategy for the rural tourism sector. A MO adoption scale is proposed and validated for the rural tourism sector. Given the importance of MO, it is important to know the relationship between a firm's characteristics and MO adoption. This study makes a hierarchical segmentation to predict the behaviour of these firms when adopting the MO. Activity and category are the two characteristics that most effectively predict a firm's behaviour. The contribution made by this work is of interest given the new field of application achieved and which have implications for the professional sector.

Impact of Market Orientation and ICT on the Performance of Rural Smaller Service Enterprises

Market orientation (MO) is considered as a competitive strategy for the smaller service enterprises based in rural locations. A model is proposed and validated for the rural tourism sector that encompasses the effects of MO and of the use of information and communications technology (ICT) on business activity, taking into account the business's financial results, improvements to the rural location, and the more personal, intangible impact on the local entrepreneur. ICT is found to have a positive impact on MO and outcomes, whereas, similarly, the adoption of MO is found to have a positive effect on outcomes.

Market orientation adoption in rural tourism: impact on business outcomes and the perceived value

This is a summary of the author’s European mention PhD Thesis, supervised by Senior Lecturer Dolores Maria Frias Jamilena, and defended on May 28th, 2010 at the Department of Marketing and Market research of the University of Granada (Spain). In this doctoral thesis it is proposed that suppliers of rural tourism adopt market orientation, together with the use of ICT (information and communications technology), as a mechanism for driving up the value of the offer in the marketplace, and as a means of achieving improved business outcomes. In order to achieve the objectives outlined in this work, two studies have been carried out, one on the supply side of rural tourism and one on the demand side. On the basis of these two studies, a third, combined study of supply and demand in rural tourism has been carried out. The main contribution of the present study is in establishing the adoption of market orientation and the use of ICT as a competitive strategy for rural tourism enterprises, for their effect on the outcomes of business activity and on perceived value for tourists.

Market and learning orientation in times of turbulence: relevance questioned? An analysis using a multi-case study

This paper aims to pinpoint and to discuss the factors that determine (i) why companies which have previously not been market oriented become so, and (ii) why already market-oriented companies increase their level of market orientation. This paper also analyses drivers of market orientation adoption and dynamics of processes as well as potential links between market orientation, strategy and learning orientation. Empirical research is based on a multi-case study of the Spanish construction and real state industry, providing a longitudinal approach. Data suggest that competitive environments trigger heightened interest in the market orientation and learning orientation constructs. In the analysed industry market orientation seems to be more prevalent in the “sunset” rather than before during the “sunrise” of the industry, which is opposite to the early work of Baker et al. (In: Sauders J (ed) The Marketing Initiative: ESRC Studies into British Marketing. Preentice-Hall, Hemel Hempstead, 1994). The link between market orientation and strategy is unclear, but proactive firms are better prepared for periods of crisis. Thinking on practical implications, this research highlights the relevance of market orientation and learning orientation in times of turbulence and suggests that proactive firms are better prepared for times of turbulence. The paper also includes discussion and implications for both literature and practice. Recommendations for best practices are also provided.

Internal‐market orientation: a misconceived aspect of marketing theory

PurposeAlthough many authors argue that practising marketing internally facilitates the implementation of the market orientation concept, systematic empirical research to explore the validity of the argument remains surprisingly scarce. Hence, the purpose of this paper is to investigate empirically the relationship between market orientation (MO) and internal‐market orientation (IMO) as well as their joint effect on customer satisfaction.Design/methodology/approachThe findings ground on data collected from dyads of financial services providers and their customers. The former provided the information pertaining to the company's degree of MO and IMO adoption as well as on perceived employee value, while the latter were asked about perceived customer value, perceived service quality and their satisfaction with their provider. In total 127 dyads are employed in the analysis.FindingsThe findings show that MO and IMO are two inter‐related concepts, probably falling under the marketing philosophy umbrella. Through MO adoption, customer perceived value and customer perceived quality of the service increase. Through IMO adoption, the company improves the level of employee perceived value, which also results in higher levels of customer perceived service quality. Interestingly enough, IMO adoption is also found to have a direct impact on customer perceived service quality.Research limitations/implicationsThe major implication from the study is that adopting a market orientation does help improve customer satisfaction but this objective is better served when developing a more holistic view of marketing and trying to simultaneously offer value to other company stakeholders, such as the employees. The major limitation of the study is the focus on services. When it comes to manufactured goods, customers receive significant value from the tangible parts of the product and consequently further investigation is required before any generalization can be made on the basis of the strength of the relationships that this study reveals.Practical implicationsThe most significant implication for practitioners is the need to strike the right balance between the company's internal and external orientation. To achieve this, companies have to invest in integrating the marketing and the human resource functions, in much the same manner in which they attempt to integrate marketing with other company functions that also influence customers' experiences.Originality/valueThis is the first empirical study to investigate the inter‐relationship and the joint effect of two well established notions, i.e. that between MO and IMO, and thus offers the required support to normative arguments regarding the need to sustain a balance between the company's external and internal focus.