Components Of Market Orientation Research Articles

Bridging Proactive Market Orientation to Startups’ Marketing Approach: Theoretical Background and Case Studies

Rapid change of global market dynamics makes the survival of startups difficult. This study investigates the integration of startups' marketing approach with proactive market orientation in order to adapt these changing dynamics of the market. Customer orientation, new-product development, innovation orientation and competitiveness are explained as encouraging components of proactive market orientation to be robust and long-run in the in competitive environment. Case studies of the paper are involving the most innovative and valuable brands of the world as well customer-centric. The most fundamental purpose of the paper is to emphasize the importance of marketing approach through those companies’ proactive behaviors. With the continues startup culture, they can give inspirations for the early-stage entrepreneurs while designing their marketing strategies. The article presents a strategic point of view for marketing decisions based on theoretical background of the phenomenon and recommends a holistic roadmap for practitioners in the journey of entrepreneurship. It is also aimed to contribute to the literature and pioneer for the further studies.

Market orientation and performance: A comparative Study of private and public universities in Kenya

The purpose of the study is to explore whether there are significant differences between private and public universities in terms of market orientation components. The study examines whether there is a significant difference between customer focus, market intelligence, competitor orientation, inter-functional coordination and performance of universities in Kenya. Comparative studies on market orientation and performance of Public and Private Universities in Kenya, have been studied in many settings over the past several years and specifically none in Kenya. The research adopted descriptive research design on Public and Private Universities in Kenya. Primary data were collected from 115 respondents using a survey questionnaire administered to staff and students of both private and public universities in Kenya. Respondents were sampled using stratified sampling and purposive sampling method. Market intelligence generation, competitor orientation and inter-functional coordination are significant for both private and public universities, while customer orientation was insignificance in both universities. The results of the study indicate that there are significant similarities between private and public universities. In addition it implies that universities have embrace market oriented activities towards students’ satisfaction, students’ retention, student growth and increase of number of programmes. This paper puts forward market orientation practices which can inform policies and guide other academic institutions that would want to meet their students’ needs and services. The paper introduces the concept of market orientation for those institutions who may have not embrace the market-oriented practices in university sector in Kenya.

Marketing Capabilities, Market Orientation and Food Security of Biofortified Cassava Producers in Nigeria

This paper proposed that marketing capability is a critical component of market orientation. As such, knowledge of intelligence and competitive strategy, aspects of market capability obtained through training is essential for market orientation. Cross-sectional survey was used. Data were collected with a structured questionnaire and analysed using the structural equation model (SEM). The structural model and path estimates indicate that all the constructs intervene in food security, implying that a systemic approach rather than individual strength can help achieve food security. The study's findings support the perspective that marketing capabilities have spill-over effects that improve market orientation and food security performance. Therefore, BoP producers through training can generate significant marketing capabilities that can improve the food market. It highlights the importance of producers adopting a market-oriented approach. The study recommended a multi-stakeholder engagement model toward integrating biofortification into public and private policies and programmes. This would encourage investment and continuous training of producers on how to improve communication and customer relationship management to stimulate consumption and supply.

Perceptions of market orientation in emerging economy entrepreneurship: evidence from crowdfunding

PurposeThe purpose of this study is to examine how crowdfunding backer perceptions of market orientation and foreignness impact crowdfunding performance in emerging economies.Design/methodology/approachUsing content analysis software, the authors analyzed 756 Kickstarter campaign narratives from the emerging economies of Brazil, Russia, India, China, and South Africa for the period between 2009 and 2019.FindingsThe authors’ results show that behavioral market orientation signals are positively related to amounts raised while decision criteria signals are negatively related. The authors also find that foreign entrepreneur status interacts with the two market orientations to impact funding amounts.Practical implicationsWhen creating crowdfunding campaigns in emerging economies, domestic entrepreneurs should use high levels of behavioral market orientation rhetoric but low levels of decision criteria rhetoric within their campaign narratives.Originality/valueThis study unpacks the components of market orientation and examines their positive and negative effects on crowdfunding success in the context of emerging economies.

Impact of Market Orientation Components on Organizational Performance of SMEs. The single-industry approach " Food and Beverage Sector"

This study examines the direct effect of the three main components of the market orientation on the organizational performance of SMEs in Yemen. Four variables are used in the research, are competitor orientation, customer orientation, and inter-functional coordination, as the exogenous latent variables, whereas organizational performance, as the endogenous latent variable. The quantitative approach is applied in this study with causal and descriptive research. The single-sector method is adopted, is the food and beverage sector, by using random sample sampling, the sample size was 640 managers/owners. only 459 samples were valid to conduct the analysis by using the Structural Equation Model (SEM) in SmartPLS Software version 3.0. The findings of the study reveal that the three main components of the market orientation have a positive and significant impact on SMEs' organizational performance. However, the effect size of customer orientation on organizational performance was more than competitor orientation and inter-functional coordination.

Encourage small business environmental sustainability performance by market orientation and environmental innovation

This paper examines whether simultaneous market orientation and environmental innovation may drive organizations’ environmental sustainability performance, with environmental innovation as a mediation. Market orientation, innovation, and performance: the relationship between the three constructs has been shown in several previous investigations, but not many results have been obtained about how it impacts the environment. We study market orientation relationships as separate variables, namely customer orientation, competitor orientation, and interfunctional coordination. The examination every market orientation component that affects organizational environmental innovation on how to change environmental sustainability performance. The method used to analyze data is modeling the structural equations of cross-sectional survey data with the SMART-PLS software, using 300 manufacture small businesses located in Indonesia. We empirically test and substantiate that not all components of market orientation have a significantly positive effect on environmental sustainability performance, but environmental innovation is an excellent mediator. Our findings show that small businesses can improve their market orientation capabilities and innovate in overcoming the challenges of environmental damage in the future, even with limited resources.

Market orientation heterogeneity and new joint venture formation announcements: creating value for parent firms

PurposeJoint ventures (JVs) are known to create value for their parent firms, in part due to the mutually beneficial sharing of information that occurs at the JV level. Market orientation (MO) is a well-documented strategic orientation that has received little attention in the JV literature, despite considerable research suggesting that MO has a positive effect on performance. This study posits that the MO skills contributed to a new JV by parent firms are likely to play a central role in a shareholder's assessment of the potential for success of a newly announced JV, thereby triggering changes in market value for parent firms.Design/methodology/approachComputer-Assisted-Text-Analysis (CATA) is used to calculate MO heterogeneity from annual reports, and event-study methodology is used to assess parent firm performance. The authors rely on a US sample of 82 public JV parents involved in 41 new equally-weighted JV formation announcements.FindingsThe authors find that heterogeneity on MO's behavioral components (customer orientation, competitor orientation, and coordination) is negatively related to parent performance, while heterogeneity on MO's profitability component is positively related to parent performance. However, the effect of MO's long-term focus heterogeneity on parent performance was not supported.Originality/valueThe results suggest that the benefits of information sharing in partnerships may be of a nuanced nature when it comes to MO. Although heterogeneity in profitability inclination created value for parent firms announcing a new JV; heterogeneity in customer, competitor and coordination market orientations did not appear to be rewarded by shareholders.

Market orientation practices enhancing corporate environmental performance via knowledge creation: Does environmental management system implementation matter?

AbstractThe academic literature on environmental management has provided extensive insights into the determinants of corporate environmental performance. However, few empirical studies have explored whether and how three core components of corporate market orientation (i.e., customer orientation, competitor orientation, and interfunctional coordination) affect environmental performance. Building on institutional theory and the absorptive capacity perspective, this study investigates the relationships among market orientation, knowledge creation, and environmental performance, as well as the moderating effects of environmental management system implementation. On the basis of survey data from 237 Chinese manufacturing firms, we used hierarchical multiple regression analyses to test the hypotheses. The findings indicate that knowledge creation completely mediates the influence of competitor orientation on environmental performance and partially mediates the influence of customer orientation and interfunctional coordination on environmental performance. In addition, environmental management system implementation positively moderates the relationship between knowledge exchange and environmental performance.

Do types of strategic orientations make a difference?

PurposeThe purpose of this paper is to create a new research direction within the domain of firms’ strategic orientations.Design/methodology/approachBased on data from Swedish multinational corporations (MNCs), this paper identifies types, i.e. configurations, of strategic orientations involving the components of entrepreneurial orientation and market orientation, and examines relationships with performance in foreign markets. Cluster analysis identifies types, and linear regression analysis examines relationships with performance in foreign markets.FindingsFour types of orientations were found: conservative; entrepreneurial; maximizing; and irresolute. Furthermore, it was found that the relationship with performance in foreign markets is most positive for the maximizing followed by the conservative and irresolute.Research limitations/implicationsFirst, it is established that entrepreneurial orientation and market orientation do not operate in isolation but are mutually supportive. Second, by establishing that type of orientations makes a difference for performance, this paper goes beyond the predominant view saying that just degrees matter. Third, the findings contribute to resource-advantage theory by establishing that competitive advantage results from resources being complementary in nature.Practical implicationsInstead of solely relying only on entrepreneurial orientation, or market orientation, corporations are advised to carefully evaluate their configuration of orientations. The evaluation is decisive because it cites implications for performance.Originality/valueThe study contributes to the literature on strategic orientation in a unique way as it captures performance implications stemming from types of strategic orientations.

Digitalni marketing

Marketing allows entrepreneurs to position themselves successfully in consumer awareness, to be successful competitors, and to satisfy consumer demands profitably. Entrepreneurs can use several marketing strategies, such as relationship marketing, expedition marketing, one-toone marketing, real-time marketing, and digital marketing. The aim of the paper is to discuss the advantages of digital marketing and certain forms of digital marketing in achieving entrepreneurial goals in the light of limited financial resources. In this paper, we will analyze the developmental stages of marketing. Then we will point to three critical forms of digital marketing: online marketing, social networking on the Internet, and mobile marketing. The main conclusion is that entrepreneurial marketing has a number of specific features arising from financial limitations of financial. Digital marketing does not require significant financial resources allocation and therefore represents an indispensable component of the entrepreneurs' market orientation.

Market Orientation and Organizational Performance of Small and Medium Enterprises in Puttalam District

The aim of the study was to investigate the relationship of Marketing Orientation on Organizational Performance of Small and Medium Enterprises (SMEs) in Puttalam District. On one hand, the study identifies the components of market orientation related with Business performance and on the other hand the significant association between Market Orientation and SMEs’ Business Performance. The study focused on three (3) dimensions related to market orientation and one dimension related to business performance. The selected sample for the study contained 110 owners from 110 SMEs in Puttalam district using convenient sampling method. The level of measuring variables was interval and the relevant statistical techniques for these measures were correlation and regression analyses. Data analysis was conducted by using Statistical Package for Social Sciences (SPSS). Four hypotheses were tested to assess the empirical relationships among variables. Looking at the overall association among the variables it was observed that there is a high positive correlation between the market orientation and business performance (r = 0.931). Subsequently, factors such as customer orientation, competitor orientation and inter-functional coordination were found to be significantly impact on business performance of SMEs. Finally, these findings may lead to making some recommendations to improve the current level of market orientation factors of owners in SMEs which might lead to an increase in their business performance. Therefore, this study attempts to bring a validated framework to inform a suitable market orientation factors for the SMEs.

Relationship Between Inter-Functional Coordination On Performance Of Universities In Kenya

Inter-functional coordination is one of the market orientation components which is based on the the customer and competitor information entailing a business’s coordinated efforts involving not only marketing department, but all the organizations’ departments and resources in order to create superior value for customers.  The main purpose of the study was to analyse the relationship between inter-functional coordination on performance of universities in Kenya.  The philosophical foundation of this study was positivism.  Descriptive and correlation designs design was adopted for the study. The target population for this study was 63 universities in Kenya.  A total of 115 respondents who include 3 staff and 2 students were selected from a sample of 23 universities. Both stratified sampling and purposive sampling were used in selecting respondents from the population. A structured questionnaire, administered through drop and pick was used in collecting data. Descriptive and inferential statistics were used in analysing data through the multiple linear regression by using of Stata software, SAS System and Statistical Package for Social Sciences. The relationship between market orientation and university performance were analysed using correlation analysis. The analysed data was presented in frequency tables, pie charts, graphs and percentages. The results show that there was a significant positive relationship between inter-functional coordination and university performance at 1% level of significance respectively. This mean that the independent variable inter-functional coordination was significant in performance of universities. The study concludes that universities in Kenya were market oriented through inter-functional coordination. Implying that that inter-functional coordination is an important market orientation concept that needs to be adopted and implemented by universities in Kenya. This study recommends that universities in Kenya should make an effort and focus more on ensuring smooth flow of communication and sharing of information across all the university’s departments. The university management need to know that their institutions would perform well if they develop inter-functional coordination capabilities that will support competitive behaviour of innovativeness.

Market Orientation Conceptualizations, Components and Performance-Impacts: A Literature Review and Conceptual Framework

Market orientation is the business idea that sees the customer, consumer or client as the centre of business activities. It is one of the strategies that may lead to the achievement of efficiency and effectiveness in many organizations. It has relevance for all sectors in an economy. This paper undertakes a review of market orientation literature pertaining to conceptualizations, components and performance impacts. Based on the literature review, the paper develops a conceptual framework and suggests likely areas for future research efforts.

Sectoral variations in market orientation and performance among small service firms in Botswana

Abstract The quest for the diversification of Botswana’s mineral-led economy necessitates an examination of other performing ones such as the Tourism-Transport and Finance-Consulting small service sectors which have been identified as also contributing immensely to its economy. So, this paper investigates variations in market orientation and performance among small service firms in Botswana. In more specific terms, it involves analysis of variations with regard to tourism-transport and finance-consulting firms. Set in Botswana, data were obtained, using a respondent-completed questionnaire from 54 managers in the tourism-transport sector and 121 managers in the finance-consulting sector. Despite the focus of the study on sectoral variations among service firms in Botswana, the study makes major contributions to our understanding of market orientation-performance link. First, the overall level of market orientation varied significantly between the two sectors. Secondly, two of the three components of market orientation, namely intelligence generation and intelligence responsiveness also displayed statistically significant differences between each component and the two sectors. Thirdly, organizational commitment, team spirit and customer satisfaction were significantly different between the two sectors. These findings suggest the need for a sustained and systematic study aimed at finding out the relative importance of market orientation in different sectors. Such a study may be helpful in suggesting differentiated marketing orientation emphases that may help firms optimize their marketing budget. Notwithstanding the several scholarly works on market orientation and firm performance, the value of market orientation in sub-Saharan Africa has only begun to receive attention in Africa. Research evidence is scanty in the case of Botswana.

The impact of internal and external market orientation on the performance of non-conventional Islamic financial institutions

PurposeThe purpose of this study was to explore the impact of internal and external market orientations on monetary and non-monetary performances of non-conventional Islamic financial institutions. This study further aimed at proposing a conceptual framework, testing it and examining relationships among the variables.Design/methodology/approachData for this study were collected from 132 branches of 11 non-conventional financial institutions in Bangladesh using a closed-ended questionnaire. The study considered a structural equation modeling approach for testing the proposed model. A two-step procedure was used for this purpose. First, a measurement model was analyzed through a confirmatory factor analysis; second, the structured model was evaluated to examine relationships between the constructs. Data used in this study confirmed the adequate reliability, convergent and discriminant validity.FindingsThe results of the study met the expectations and provided an evidence that both monetary and non-monetary business performances are functions of internal and external market orientations’ efforts. As the results are reported, all three components of internal market orientation, e.g. internal intelligence generation, dissemination and responsiveness, were found to be statistically significant and positively related to monetary and non-monetary performances, except internal intelligence responsiveness with employees’ team spirits. The study also revealed a significant relationship between all three external market orientation components, and business performance, except external intelligence responsiveness, was not found to have a significant relationship with team spirit and customer retention. The results, however, imply that the performance of non-conventional financial institutions is an integrated effort of both internal and external orientations rather than using a single approach.Originality/valueFindings of this study support the theoretical arguments that non-conventional financial institutions can be successful in attaining all types of performances by initiating and adopting internal and external market-oriented activities. The study further argues the importance of the activities under each market orientation component and suggests non-conventional financial institutions to promote such an initiative if they are to be consistent in their performances.

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

ABSTRACTThe positive effects of market orientation and its components on firm performance are empirically supported by studies conducted for large firms in developed economies. However, its influence on performance in developing and emerging (D&E) economies, particularly under a cooperative's context, has been under-researched. This paper examines the impact of market orientation components on the performance of seed producer cooperatives (SPCs) in Ethiopia. Results show that customer orientation, interfunctional coordination, and supplier orientation, but not competitor orientation, contribute to higher business performance. Our findings confirm that customer orientation is the key factor for superior business performance in D&E economies. Business performance has a mediating effect between market orientation components and livelihood performance. Interfunctional coordination and supplier orientation influence the livelihood of member farmers both directly and indirectly via business performance. The study concludes that market orientation of SPCs is very important for business performance and provides a strong basis for the livelihood of seed producer families. SPCs can improve their performance and the livelihood of member-farmer families by implementing market oriented strategies, emphasising the key components of market orientation.

Market Orientation in a Digital World

The concept of market orientation was introduced in the early 1990s as entailing three sets of activities: generation, dissemination and responsiveness to market intelligence. Since then the World Wide Web has ushered in a sea change in the way people communicate and interact. This article explores the impact of the still-developing digital technologies on market orientation. In particular, it examines how the practice of each of the three components of market orientation is being impacted by digital technologies, and whether market orientation continues to be important for business organizations. The discussion identifies opportunities presented by digital technologies as well as difficulties generated by them.

The relationship between organizational citizenship behavior and market orientation in organizations (case study: Agricultural Jihad Organization of Mazandaran Province)

The main purpose of this study is analyzing the relationship between organizational citizenship behavior and market orientation. This study is an applied research in terms of the purpose based on a descriptive correlational method. The statistical population included all employees of Agricultural Jihad Organization of Mazandaran province consisting of 1923 persons. 391 people (male and female) were selected using random stratified sample. Data were collected through two standard questionnaires: Podsakoff’s (2003) organizational citizenship behavior and Kohli, Jaworski, Narver, and Slater’s (1990) market orientation. Validity of questionnaires was confirmed by experts and reliability of them was confirmed using Cronbach’s coefficient alphabet. Cronbach’s alpha for the organizational citizenship behavior and market orientation was calculated by 0.80 and 0.91. Components of organizational citizenship behavior included civic virtue, altruism, conscientiousness, sportsmanship, and courtesy. Components of market orientation included customer orientation, competitor orientation, and intra-functional coordination. Data were analyzed using descriptive and inferential statistics through SPSS software. The results of the study showed that there is a significant relationship between organizational citizenship behavior and market orientation in organizations. Keywords: organizational citizenship behavior, market orientation, employees, Agricultural Jihad, Mazandaran Province. JEL Classification: D23, M10, M12, M31

Market Orientation and Company Performance: A Russian Service Industry Perspective

Purpose – This paper examines the influence of Market Orientation on business performance in the local service industry in Russia.Design/methodology/approach – The MKTOR and MARKOR models of Market Orientation were studied and evaluated. This led to the elaboration and proposal of a localized Market Orientation model which counts the peculiarities of doing business and the market in an emerging market. Such a model then provided the basis for a set of hypotheses tested by a field study of 133 organizations operating in the service industry. The impact of Market Orientation on business performance then was examined.Findings – The results demonstrate that Market Orientation produces a positive effect on performance.Practical implications – Companies may benefit by implementing Market Orientation. In the service industry, inter-functional coordination between different departments, competitive service product offers and a customer centred philosophy are the most crucial Market Orientation components. Others should not be overlooked as they also commonly provide a substantial basis for improved business performance. Being applied systematically, the Market Orientation paradigm may produce a positive effect on the business and its competitive position in the marketplace.Originality/value – This paper follows a stream of publications dedicated to the Market Orientation paradigm. Even with the number of publications on Market Orientation there is a lack of studies on its application to different markets, countries and industries. This paper contributes to the small number of publications dedicated to Market Orientation in one of the most multifaceted emerging markets, Russia. It is also the first that studies Market Orientation applied solely to service industry organizations in Russia.

Pazar Yönelimi ve Firma Performansı İlişkisi: Farklılaştırma Stratejisinin Aracı Rolü

As one of the most salient strategic orientations, market orientation consists of organization-wide activities to provide unique and superior customer value and to understand and satisfy customer expectations and needs. However, in the rapidly changing competitive environment, rather than focusing on just market orientation, there is a need for competitive strategies that will strengthen and contribute to performance. In this study, we empirically investigated the relationship among the components of market orientation, differentiation strategy and firm performance (i.e. financial, market and innovation performance). By investigating 250 firms, this paper shows that a) the market orientation variables are positively related to differentiation strategy, b) differentiation strategy is positively associated with firm performance and c) differentiation strategy mediates the relationship between market orientation and firm performance.