Implementation Of Market Orientation Research Articles

Market orientation dynamic capability – a catalyst for purchasers’ core competencies to achieve innovative performance during supplier collaboration

PurposeThis study aims to investigate purchasing manager’s core competencies during supplier collaboration and explain the mechanism through which these competencies can affect purchasing firm’s innovative performance.Design/methodology/approachThe authors conducted 22 semidirective interviews with managers in diverse functions such as purchasing, supply-chain management and product development across industries and across nations (mostly India and France), which allow to formulate the propositions.FindingsThrough open coding, the authors identify three path-dependent, causally ambiguous and socially complex core competencies of purchasing managers: relational and emotional, communicational and creative and cognitive competencies; and through axial coding, the authors explain how these intangible core competencies support implementation of market orientation. To provide supporting arguments for the propositions, the authors use the resource-based view of the firm and dynamic capability theory.Research limitations/implicationsThe first theoretical contribution of this study is focusing on the impact of competency–capability dyad in terms of performance. The second theoretical contribution of this study is to identify market orientation as a flexible and dynamic managerial capability.Practical implicationsThe first managerial contribution is that the authors have identified and described three sets of a purchasing manager’s core competencies during supplier collaboration that affect the firm’s performance: relational and emotional, communicational and creative and cognitive competencies. The second managerial contribution relates to the mechanism through which purchasing managers’ core competencies during supplier collaboration affect firms’ outcomes.Originality/valueThe value of the results is in the explanation of the mechanism, i.e. market orientation dynamic capability, through which the competencies of purchasing managers can affect purchasing firm’s innovative performance.

Market Orientation, Transformational Leadership, Partnership Effects on Organizational Performance: Competitive Advantage as a Mediator

Market orientation, transformational leadership, and partnership strategy effects on organizational performance mediated by competitive advantage in non-profit private universities are not widely discussed and well understood. The research aimed to describe the implementation of market orientation, transformational leadership, and partnership strategy, competitive advantage, and organizational performance. The research also analyzed the effects of the independent variables (market orientation, transformational leadership, and partnership strategy) and intervening variable (competitive advantage) on the dependent variable (organizational performance). The research applied a quantitative method. The respondents were 38 rectors or vice-rectors from private universities using simple random sampling. The data were analyzed using the PLS technique. The results show that all independent variables have positive effects on competitive advantage, except partnership strategy. Competitive advantage also has a positive effect on organizational performance. The practical research implication is that human resources in universities must have excellent service-oriented. They need to communicate well and coordinate to deliver better service to the students to be competitive and achieve better performance. In conclusion, to increase the university performance, the university leaders need to encourage all employees and faculty members to deliver the best service to the stakeholders of the universities and coordinate well across units to discuss issues and share ideas to solve the problems they have in service delivery. Then, the employees and faculty members will know what to improve and provide, and private universities will be much more competitive because of their reliable resources and capabilities.

Implications of the COVID-19 pandemic on market orientation in retail banking

This qualitative study examines the implications of the COVID-19 pandemic on the implementation of market orientation (MO) in the context of retail banking. The findings show that MO was significantly reflected in the behaviors of banks upon encountering the COVID-19 situation, with the banks increasing their MO in response to the crisis. This study finds subcategories based on the empirical data that explain the implementation of MO in more detail. Overall, the findings provide valuable conceptual and managerial insights into the modus operandi of banks during a crisis and offer new best practices for the banking industry.

Influence of market orientation and stakeholder management on the performance of Croatian cities

The implementation of market orientation plays a valuable role in the complex public sector, because it enables numerous entities responsible for the development of different levels of public administration to respond more efficiently to the demands of its users and other stakeholders. The current fragmented territorial structure and low level of decentralization reduce the developmental potential of local administrations in Croatia. However, these obstacles do not relieve the Croatian local administration of their responsibility to fulfil their social mission. The empirical measurement of quantitative and qualitative indicators in Croatian city administrations have determined a medium level of their market orientation. The results of correlation analysis have revealed a statistically significant difference between market orientation levels towards each of the nine analyzed groups of stakeholders. As presumed, the city administrations exhibit the highest market orientation level toward citizens. Additionally, the research has confirmed the positive influence of higher multiple stakeholder market orientation of city administrations on their subjectively measured performance. These results should be observed and assessed, taking into account the fact that the Republic of Croatia does not prescribe a legal obligation to monitor the city administration performance nor directly encourages it.

Peranan Orientasi Pasar dalam Meningkatkan Keunggulan Bersaing pada UMKM Lampu Gentur Cianjur

Lampu Gentur is one of the superior products of UMKM Cianjur Regency with poor development and experiencing problems in the decrease in production and a decrease in turnover. The incapability of Lampu Gentur in fulfilling consumer desires and luster move in winning the market. The purpose of this research is to find out how the implementation of market orientation conducted by Lampu Gentur, how competitive advantage made by SME in Cianjur, and how the influence of the market orientation to competitive advantage. This study used a sample of 109 MSMEs. The method used simple linear regression. The result of analysis yielded the formula Y = 21,916+ 0,503x with R square equal to 0,344 which means market orientation able to improve the competitiveness of SMEs Gentur Lamp with value 34,4%.

Marketing Strategy and Capability as the Mediators in Relationship of Market Orientation and Export Performance: A Case Study of Rattan Processing SMEs

The research examined the performance of export marketing performance through the implementation of market orientation intervened by export marketing strategy and export marketing capability. Primary data were collected through questionnaires from 108 samples out of 148 rattan processing Small and Medium Enterprises (SMEs) in nine provinces in Indonesia. The respondents were marketing managers or owners of SMEs with at least two years of experience. Structural Equation Modeling (SEM), which was processed by using Lisrel 8.7, was employed. The results indicate that market orientation, export marketing strategy, and export marketing capability are well implemented in the business operation of SMEs. However, the export marketing performance needs to be improved. Concerning the variables studied, market orientation has a significant effect on export marketing strategy, export marketing capability, and export marketing performance. Then, export marketing strategy affects export marketing performance significantly. Moreover, export marketing capability also has a significant effect on export marketing performance. Finally, export marketing strategy and capability intervene in the relationship between market orientation and export performance.

Synergistic effects of market orientation implementation and internalization on firm performance: Direct marketing service provider industry

We draw on recent advances in Market Orientation domain to examine the synergistic effects of market orientation implementation and internalization on firm performance in the context of digital transformation within direct mail service provider industry. We introduce market orientation internalization as a mediator between market orientation implementation and firm performance relationship. In addition, the effect of learning orientation is considered as a moderator that strengthens the relationship between market orientation implementation and market orientation internalization. The research model is empirically tested using Hayes (2013) conditional process analysis utilizing a unique dataset from an industry that is undergoing an unprecedented digital transformation from physical to digital communication. The results suggest that firms that practice high levels of market orientation implementation and internalization perform better in both financial performance and customer service performance.

Market Orientation as a Strategy for Service Delivery in Public Libraries: A Case Study of the Northern Region in Kwazulu-Natal, South Africa

Public libraries face a plethora of challenges in the information age. However, in spite of that, they are expected to deliver library services and to maintain their relationship with both current and potential users. The purpose of this study was to investigate the implementation of market orientation (MO) in library services provision in public libraries in the Northern Region of KwaZulu-Natal (KZN), South Africa. Using both quantitative and qualitative approaches, questionnaires and interview guides were used to collect data from the managers and librarians in the public libraries of the Northern Region of KZN. The collected data was tabulated in headings and sub-headings, and presented using themes, tables and frequencies. The study established that MO is still a developing concept for non-profit making organisations, such as public libraries. The managers and librarians as professionals in different levels have limited understanding of the concepts and its implications. This calls into question the implementation of this strategy in the provision of library services tailor-made for users. Although there are policies which guide MO and the provision of library services, it is doubtful that they are consulted and implemented. There are challenges which hinder the public libraries in this region from fully implementing MO for the benefit of the users. There is a need to create awareness of MO and its benefits to public libraries. Training librarians, and allocating funding for resources and infrastructure that will improve the implementation of all the strategies for improved library services, are some of the recommendations of the study.

How organizational culture influences market orientation and business performance in the restaurant industry

Abstract This study contributes to the hospitality literature by examining the direct and indirect effects of organizational culture types on market orientation (MO) and performance in the context of the restaurant industry. A structured questionnaire was used to survey owners/managers of independent restaurants in the U.S. The direct influence of supportive and innovative cultural types on firm performance was confirmed. In addition, MO partially mediated the direct positive effect of innovative organizational culture on firm performance. Our results also confirm that innovative and supportive organizational culture types are important predictors of MO and that they are better predictors of performance than MO. The findings should enhance organizational design and marketing options available to restaurant businesses and offer guidance to managers attempting to shape and mold organizational culture and the behaviors associated with the implementation of MO in order to improve performance.

The Effect of Individual Market Orientation on Sales Performance: An Integrated Framework for Assessing the Role of Formal and Informal Communications

To gain competitive advantages, companies expect their sales forces to execute selling strategies consistent with their market-oriented culture. Drawing on understandings of market orientation, organizational communication, and role theory, the author develops an integrated framework demonstrating the performance impact of individual market orientation (IMO) through formal and informal communications. This article also considers the moderating effects of role ambiguity and role conflict in the IMO–performance relationship. Five propositions are developed to bring new insights to these complex and important relationships and to encourage future research into the nature of frontline communication in the implementation of market orientation.

Market Orientation Determinants: Reflections from Academics in Universities of Technology in South Africa

Internationally, universities have come under increased pressure to respond to the changing market environment. A new axis for higher education institutions (HEIs) is a key to successful marketing, which lies in identifying the core business of institutions. Market orientation more closely reflects a philosophy that will not only serve to bring unity of purposes in HEIs, but serves as an indispensable tool that can assist HEIs to deliver their core business. The dynamics in the HE environment, the growth potential and the regulatory challenges make universities of technology (UoTs) ideal institutions for a study on the implementation of market orientation. It is against this backdrop that this paper considers the factors contributing to market orientation through the lenses of South African UoT academics through a quantitative study; 507 (n=507) academics participated in the study. Data are analysed through exploratory (to determine the factor structure) and confirmatory factor analysis (to confirm factor structure), descriptive and correlation analysis (to analyse the composition of the sample and to establish validity). Through the factor analysis procedure, seven factors were established, namely intelligence generation, inter-functional coordination, student-orientation, market intelligence dissemination, intelligence response design, intelligence response implementation and interdepartmental dynamics as a basis for operationalising the marketing orientation concept among UoTs. Through confirmatory factor analysis, the identified components seem to encapsulate the determinants of UoTs appropriately. From a practical standpoint, top management of universities could use these core market orientation factors to guide their strategic marketing plans and their strategic imperatives with the universities vision and mission in order to remain relevant and competitive. Future studies could expand these factors to provide a better understanding within HEIs in relation to their various stakeholders.

How perceived institutional pressures impact market orientation

Purpose – Literature has not paid enough attention to the antecedents of market orientation in the context of transitional economy and many authors focus on internal antecedent factors which could be controlled by the organizations. To address the research gaps, the purpose of this paper is to examine the impact of institutional pressures upon market orientation implementation in mainland China. Design/methodology/approach – Based on multiple case studies of four large B2B manufacturing firms, this paper presents a conceptual framework incorporating three kinds of institutional antecedents of market orientation. Then the developed framework is empirically tested and the impacts of antecedent factors are compared by a fully structured questionnaire survey of 235 Chinese manufacturing firms. Findings – The research findings indicate that during the market-oriented organizational change, normative and mimetic institutional pressures are important driving forces. In addition, the significant institutional antecedent factors are pressures arising from strategic partnership, system certification requirements, industry benchmarking, management consultation and intensive competition. Originality/value – This research is first of its kind as it probes into institutional antecedents of market orientation among Chinese firms by combining cross-case study and large-scale survey. It contributes greatly to the literature of market orientation and institutional theory, and also provides relevant managerial implications for firms as to how to improve market-orientation degree.

Enabling innovation and creativity in market-oriented firms

Purpose– The relationship between market orientation and innovation has been the subject of numerous studies. While some find positive effects, the others argue negative effects of market orientation (or its components). The majority of the critique regards mostly its potential to limit creativity and the technological breakthrough. Concerns over its benefits for commercialization of an innovation are less pronounced. The purpose of this paper is to address the implementation of market orientation in new product development activities and seek to find if they follow different patterns or whether the whole concept is applied equally in successful innovating firms.Design/methodology/approach– The study relies on qualitative methodology. Findings are based on seven case studies. Cases are selected according to theoretical sampling. In order to collect the data the authors employ interviews.Findings– The research findings support the assumption that the general principles of customer and competitor orientation are subject to different manifestations. However, no forms of interfunctional orientation have been identified.Originality/value– The findings of the study can help us to understand how market oriented firms establish a suitable setting for creativity and innovation and enable innovation development.

Market orientation and innovation performance: The moderating roles of firm ownership structures

The marketing literature documents inconsistent results on the link between Market Orientation (MO) and innovation performance. The agency theory suggests that agency problems exist in firms between the principal (owner) and the agent (managers). A proper firm ownership structure design may solve the principal-agent problem. In this study, we investigate an understudied research question: whether and how ownership structures may affect the relationship between MO and innovation performance? We posit that firms should align three different dimensions of ownership structures with MO in order to achieve a superior innovation performance. We assembled a unique data set, with 242 publicly-traded companies, by merging three different data sources in an emerging market — China to test our framework. The results support our proposed model, and confirm the moderating role of ownership structures in the relationship between market orientation and firm innovation performance in China. First, all things being equal, non-state-owned firms may achieve a higher level of innovation performance than their state-owned counterparts through their implementation of MO. Second, allowing top managers to have a certain fraction of the firm's ownership stake (called managerial ownership), that can switch risk preference and time preference of top manager's to those of shareholders, may foster the effect of MO on innovation performance. Third, a high ratio of major owners over minor owners (named as ownership concentration), that can empower and motivate shareholders to closely monitor a manager's behavior, may also strengthen the relationship between MO and innovation performance. The Chinese data from a transition economy sheds light on the ownership structure reforms in China, and provides novel new insights to the marketing theory and practice regarding the role of two new additional emerging dimensions of ownership structures — managerial ownership and ownership concentration in the relationship between MO and innovation performance. Theoretical and managerial implications are discussed, and several avenues for future research are proposed.

How manufacturer market orientation influences B2B customer satisfaction and retention: empirical investigation of the three market orientation components

Purpose – This paper aims to examine how the three market orientation components (customer orientation, competitor orientation and interfunctional coordination) influence industrial manufacturers’ customer relationship management outcomes in a business-to-business (B2B) context. Design/methodology/approach – In linking market orientation components and their relationship outcomes, the authors examined the moderating effect of interfunctional coordination. The model was tested using data collected from 279 manufacturing firms in the USA. Findings – While customer orientation and competitor orientation both influence customer relationship outcomes, interfunctional coordination does not. However, interfunctional coordination lessens the positive relationships between customer orientation and customer retention as well as between competitor orientation and customer satisfaction. Although competitor orientation has a slightly stronger impact on customer satisfaction than customer orientation does, it only has an indirect relationship with customer retention through customer satisfaction. Originality/value – The findings illustrated the effects of the three components of market orientation on customer relationship outcomes within manufacturing-centered firms, and provided managerial implications to industrial manufacturers on market orientation implementation strategies in regard to successful B2B customer relationship management.

The Implementation of Market Orientation and Innovation in SMEs

This study attempts to explore the implementation of market orientation and innovation on business performance for SMEs hospitality industry in Thailand. The market orientation perspective of Kohli and Jaworski (1990), which consists of intelligence generation, intelligence dissemination, and organization-wide responsiveness, is employed in this study. The unit of analysis of the study is SMEs hotels located in Thailand. A quantitative approach and a structural-direct questionnaire survey were adopted. Structural Equation Modeling (SEM) with AMOS version 17.0 was used for data analysis. The results conclude that intelligence generation, dissemination and responsiveness have a significant indirect effect on business performance through innovation.

The Role of Sales and Marketing in Market-Oriented Companies

Since little is known about whether both marketing and sales functions pay off in market-oriented companies, this research analyzes the interaction between market orientation and the departmental power of marketing and sales within the firm. Data collected across five industries on the marginal effect of marketing’s departmental power on business performance show that market-oriented companies benefit from a strong marketing function, but a powerful marketing department cannot compensate for low levels of market orientation. Surprisingly, the power of sales impedes successful market orientation implementation. This has important implications for future sales management research. We highlight the significance of these findings for both theory and practice.

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.

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

Organizational commitment and market orientation of Nigerian non‐oil exporting companies

PurposeThis paper aims to test the relationships between organizational commitment and market orientation within the context of the non‐oil sector of a developing country.Design/methodology/approachCross‐sectional data was collected from 190 managers of non‐oil exporting companies. Multiple regression analysis was adopted to test the impact of organizational commitment on market orientation.FindingsThe analysis of the data shows that organizational commitment affects market orientation positively and that top management belief and the organizational reward systems are important in the implementation of market orientation. However, the use of cross‐sectional data limits the measurement of the impact of organization commitment on market orientation over a long period.Practical implicationsMarket orientation can be improved upon through concerted efforts in building organizational commitment. This can be achieved either individually or by combining organizational commitment with reward system and top management belief.Originality/valueThe paper contributes to the understanding of market orientation antecedents within the non‐oil sector of the Nigerian economy.