Organizational Market Orientation Research Articles

Women’s associations in Cotopaxi, Ecuador: from rights to agroecological markets

ABSTRACT Smallholder, indigenous farmers play a key role in the food system in Ecuador, applying traditional farming practices that ensure the sustainability of their food production and meeting the dietary demands of many urban consumers, especially for organic vegetables and dairy products. This study examines the position of six women’s associations in the central Ecuadorian Andes, discussing their evolution from rights-based to market-oriented organizations producing and selling agroecological products. We discuss how the history of these associations has led them to play a role in local politics and national policies around agriculture and highlight how these organizations have succeeded both economically and socially, while also noting the challenges they face, as observed by themselves and outsiders. While the history of women’s agroecological production organizations in Ecuador may be unique, as it is entrenched in indigenous rights movements, our results also point to opportunities and obstacles that are more common across small scale farmers and deserve attention from both policymakers and agricultural organizations.

Effect of product innovation on SME’s performance

This research was conducted to identify the determinants of SME's performance as well as look at the underlying conditional factors. Researchers examine the direct effect of product innovation on SME's performance and consider the moderating role of market orientation and organizational learning. Using the quantitative method, the researchers conducted a survey of 170 SME owners in DKI Jakarta Province who were selected using a purposive sampling method. This survey was conducted online by distributing questionnaires through an online platform. The data is then analyzed using Structural Equation Model with AMOS and Process by Hayes. The results of hypothesis testing show that product innovation has a positive effect on the performance of SMEs, and this effect will be stronger when SMEs have high market orientation and high organizational learning. This research can be used as a reference by owners or managers of SME to advance their businesses. SME need to innovate products and form a conducive climate in market-oriented organizations, as well as a climate that allows them to carry out organizational learning.

How Does Urban-Rural Capital Flow Affect Rural Reconstruction near Metropolitan Areas? Evidence from Shanghai, China

Capital outflow during industrialization and urbanization is a primary reason for global rural recession, and China is no exception. Since China focuses on the integrated development of urban and rural areas, urban-rural capital flow affects the transformation and sustainable development of rural areas. However, few studies have focused on this issue. Based on long-term field observations of Wufang Village in Shanghai, we established an analytical framework to describe how urban-rural capital flow promotes rural reconstruction. The research results show that the influx of urban industrial and commercial capital results in market-oriented organization and reconstruction focusing on land, industry, and capital: (1) Land-use optimization changes the land ownership and spatial structure of rural areas and improves the spatial value of rural areas. (2) Industrial development is focused on diverse development and the integration of primary, secondary, and tertiary industries in rural areas. (3) Capital investment is performed by a consortium of state-owned enterprises, private enterprises, and rural collective enterprises—which jointly invest, obtain revenue, and share profits—while considering the balance between attracting capital to rural areas and achieving independent development. The experience of Wufang Village has implications for the rural transformation policies of other large cities in China and other countries in Asia and Africa during urbanization.

Managerial antecedent factors of export market-oriented organizations and their performance consequences : Studying hungarian higher education institutions using a configurational approach

The study focuses on the managerial antecedents of export market-orientation and tests the complex interaction of these factors to two outcomes of interest (that is, high export market performance vs. the absence of high export market performance) with a fuzzy-set qualitative comparative analytical approach (fsQCA). Using a combined survey data of twenty five export-orientated higher education institutions based in Hungary the results show that a complex interaction of ma- nagerial antecedents factors to export market-orientation and export market-orientation leads to a high export market performance, whereas misfit between these factors yields the absence of a high export market performance; a complex analytical and theoretical approach missing from export market-orientation and strategic human resource management literatures. Results of the study can enrich the understanding of the complex interaction of the managerial antecedent factors to export market-orientation; therefore, providing valuable insights to academic and managerial audiences ali

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.

Location, market orientation, and firm performance: An analysis of the Colombian healthcare industry

In the Latin American healthcare industry, there seems to be an association between the implementation of the marketing strategies and the firms' location that suggests the need to study the organizational performance under these aspects. To this end, this paper contrasts the relationships between an organization's market orientation (MO), its location (for example, within a service cluster), and performance. The quantitative analysis was carried out among managers' perceptions from 134 service companies belonging to the healthcare service companies operating in the city of Cali, Colombia. The results showed a positive association between being located in a service cluster and business performance. It was also shown that the strategic approach based on OM positively affects performance. Moreover, we noted that competitors' orientation is the only component of the OM construct that significantly influences performance. The conclusions of our study allow for guiding the strategic decision-making of the managers of these companies regarding the decisions of location and content of marketing strategies.

Investments in innovations of social and technological enterprises

The modern literature extensively considers the process of technological innovations and the results of the activities of market-oriented organizations. However, there are no studies of the process of technological innovations and the results of socio-technological enterprises that are formed to create social value through the use of technologies. The paper presents a conceptual model of how the investments of socio-technological enterprises in technological innovations implemented in the process of innovation implementation affect their market and social strategic orientation. The author considers these investments in innovations at four levels of analysis: founders, innovations, organization, and the external environment. The presented model and proposals promote and enrich the current literary sources regarding the factors that affect the balance of the strategic orientation of socio-technological enterprises between the social and market orientation.

The strategic planning of market-oriented oil, gas, and coal technology organizations

The strategic planning of market-oriented oil, gas, and coal technology organizations

УПРАВЛЕНЧЕСКИЙ УЧЕТ В СИСТЕМЕ УПРАВЛЕНИЯ МЕДИЦИНСКОЙ ОРГАНИЗАЦИЕЙ

The emergence and growth of the number of market-oriented organizations led to the introduction of management accounting into economic life. A well-established system of management accounting and reporting for managers of different levels is necessary for the highly effective work of a modern medical organization. At the same time, innovative approaches to management, the emergence of new forms of economic relationships, the constantly growing information needs of managers of the organization, the increase in the level of socialization and intellectualization of society have led to the emergence of new accounting objects. The allocation of management accounting in the system of economic accounting, along with accounting, statistical, operational and tax, is fixed at the legislative level. However, the organization determines the formation of this type of accounting to meet the information needs of management independently, which is also stipulated by law. The theoretical and methodological aspects of management accounting have been studied by many foreign and domestic scientists, but today the potential of accounting in the field of management of health care institutions, the essence of its system methodology, without understanding which the full use of its tools is complicated. There are no studies that would comprehensively cover the problems of management accounting in medical organizations in this area, which has determined the relevance and timeliness of this work. The article is devoted to the organization and management of accounting in medical organizations. The article substantiates the need to implement management accounting in the management system of a medical organization. The introduction of management accounting is considered as one of the factors for improving the efficiency of the medical organization’s management system. The article considers the classification of management accounting tools, outlines its range of tasks, taking into account the specifics of the medical organization, describes the conditions for effective management accounting in medical organizations, the problems of implementing and functioning of management accounting, the main approaches to the formation of the concept of modern management accounting for medical organizations. A management accounting system can be effective in healthcare institutions if it takes into account current trends in the industry and the economy as a whole. In the modern understanding of the term «management accounting», more and more emphasis is placed on the word «management», since the organization and methodology of this type of accounting is aimed at solving management tasks. The emergence and existence of management accounting is due to a specific goal-to help internal users make more informed decisions and is aimed at generating information for internal users to make management decisions. However, it is not regulated by generally accepted principles and is organized by the company independently. However, traditional approaches to the concept that the accounting system should include only internal information, and activities are considered as one main item of expenditure of the organization, are currently unacceptable. The system of domestic accounting should be focused not only on the production of services, but also on the market. At the same time, service-oriented thinking should change to patient-oriented thinking. Management accounting plays an important role in solving predictive tasks. The organization of management accounting in the healthcare industry provides for the need to take into account a number of factors that have a primary impact and are determined by the specifics of the activity. Each medical organization develops a management accounting system based on its own needs and work specifics. The cost of developing and further operating a management accounting system should not exceed the economic benefit of its implementation. The main approaches to forming the concept of modern management accounting for medical organizations are the introduction of new cost accounting systems and new approaches to calculating the cost of medical services provided. The experience of many medical organizations shows that the practical application of management accounting, unfortunately, has not yet received proper distribution, due to an unsolved range of problems. In modern conditions, this issue is extremely relevant and requires research.

The relationship between market orientation, customer loyalty and business performance: A sample from the Western Europe hotel industry

This study explores the nature of the relationship between market orientation and business performance and the mediating role of customer loyalty in this relationship. Empirical analysis was based on a sample from the Western European hotel industry. Research results indicate that market orientation has a positive direct effect on business performance and that the effects of market orientation on business performance are mediated through customer loyalty. Market orientation produces a positive effect on customer loyalty, which in turn has a positive effect on business performance, showing that market orientation has a significant and positive indirect effect on business performance. These findings suggest potential major implications for the hotel industry. For example, by developing a market-oriented organization, hotels could produce positive effects on customer loyalty and consequently on their business performance.

The role of market orientation, relational capital, and internationalization speed in foreign market exit and re-entry decisions under turbulent conditions

Firms’ internationalization strategies can vary with changing environments. Occasionally, a firm may choose to re-enter a foreign market it had abandoned in the past if environmental conditions have improved. The present study provides insight into the foreign market exit and subsequent re-entry processes. Specifically, we utilize the strategic flexibility perspective to investigate the impact of market orientation, relational capital, and internationalization speed on market exit and re-entry decisions under turbulence in a host market. Using a sample of 156 Turkish firms that operated during the Arab Spring in the Egyptian market between 2010 and 2015, we find that the market-oriented firms are more flexible in their market exit decisions than less market-oriented organizations. In addition, relational capital specific to the host country has a negative impact on market exit decisions under conditions of political conflict. The results also suggest that strong ties with partners in the host country increase the propensity to re-enter the market.

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. …

A Study to Understand the Extent of an Organization's Market Orientation related to its Business Performance

A Study to Understand the Extent of an Organization's Market Orientation related to its Business Performance

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

FUNDES: Becoming a strategically mindful nonprofit

This case discusses the development of FUNDES, a Costa Rica based nonprofit, with the mission of promoting the development of micro, small and medium-sized enterprises (MSMEs) in Latin America. Originally a pioneer in the field of economic development work, FUNDES had begun to face fundamental changes. The case illustrates how the organization was able to effectively continue to fulfill its mission despite these unpredictable dynamics by implementing strategic changes based on principles of collective mindfulness. FUNDES continually monitored the impact of its services, viewing early signs of failure in the fulfillment of its mission as indications to adjust its service portfolio. Later, FUNDES successfully changed its funding structure when the donor announced that it would be ceasing investments. Strengthening its emerging focus on projects that included large enterprises, FUNDES reinvented both its service portfolio and its business model, becoming a financially self-sustaining, mission-driven and market-oriented organization.

Improving the effectiveness of market-oriented organisation: Empirical evidence from an emerging economy

In the context of an emerging market economy, this study examines the mediating role of marketing capabilities on the market orientation (MO)–performance relationship. Specifically, the authors investigate the roles of product innovativeness, customer relationship management (CRM) capability, research and development (R&D) integration and brand management capabilities in the institutionalisation of a MO culture and the implementation of MO behaviours. With data collected from 150 organisations, the authors find that MO behaviour fully mediates the effects of MO culture on product innovativeness and CRM capability, which in turn enhance firm performance. In addition, leadership quality facilitates the effect of MO culture on MO behaviour, and the effects of product innovativeness and CRM capability on firm performance are greater in the presence of R&D–marketing integration and brand management capabilities, respectively.

Identity formation and strategy development in overlapping institutional fields

PurposeCare farming is an underexplored example of agricultural diversification. In their process of diversification, care farmers are newcomers to the healthcare sector, facing high entry barriers and lacking the skills required to build a solid and legitimate presence in this new domain. Changes in the care regime have provided opportunities for new players, like regional organizations of care farmers, to gain access to care budgets. The purpose of this paper is to describe and analyze how strategies designed to establish regional organizations of care farms with similar access to institutional resources unfold and are translated into entrepreneurial behavior, organizational identity and legitimacy, and help provide access to care budgets.Design/methodology/approachUsing entrepreneurship, identity formation and legitimacy building as guiding concepts, the authors interviewed stakeholders and analyzed activities and documents to gain a broad perspective with regard to the organizations, skills and activities.FindingsThe authors identified two types of regional care farm organizations: a cooperative and a corporate type. While the corporate type clearly exhibited entrepreneurial behavior, leading to a trustful and appealing organizational identity, substantial fund-raising and an early manifestation of institutional and innovative legitimacy in the care sector, the cooperative type initially lacked entrepreneurial agency, which in turn led to a lack of legitimacy and a slow development toward a more professional market-oriented organization. Manifesting entrepreneurial behavior and strategically aligning the healthcare and agricultural sectors, and building up both institutional and innovative legitimacy in the care sector proved to be crucial to the successful development of regional organizations of care farms. This study contributes to existing literature by exploring relationships between entrepreneurial and institutional strategies, legitimacy, organizational identity and logics.Originality/valueThis study contributes to the literature by exploring how in times with changes in institutional logics, strategies to establish new organizations unfold. The authors have shown how differences in strategy to establish new organizations with similar access to institutional resources unfold and are translated into diverging organizational identities and degrees of legitimacy. Entrepreneurial behavior is the key to create a trustful and appealing identity and innovative and institutional legitimacy which is important for providing access to an institutionalized sector.

War for profit: English corsairs, institutions and decentralised strategy

In this study, we propose that in states with relatively weak central authorities, decision-makers had to develop market-oriented organisation solutions to successfully face a grave external threat, and these solutions proved to be efficient. Using an interdisciplinary approach that combines institutional theory, history and strategy, we analyse a case study, the use of corsairs (privateers) by England in the late sixteenth and early seventeenth centuries. We have found that the development of partnership companies went hand in hand for commercial and military purposes. English privateers proved to be economically efficient and superior to the centrally planned war operations of the Spanish empire.

Enhancing corporate social responsibility through market orientation practices in bottom of pyramid markets: with special reference to microcredit institutions

Market-oriented organizations are committed to understanding and serving customer needs. Customers become socially conscious, so market-oriented firms need to carry out ‘Corporate Social Responsibility’ (CSR) initiatives. The main aim of this study was to investigate the influence of market orientation on CSR among microcredit institutions. The findings of this study are useful for microcredit institutions and marketers operating in bottom of pyramid (BOP) market to enhance their CSR through market orientation practices. The sample comprised 250 managers of microcredit institutions operating in the rural areas of Sri Lanka. The surveys were administered for data collection. All the three components of market orientation, that is, customer orientation, competitor orientation, and inter-functional coordination significantly and positively influenced the CSR involvement. Adaptation to BOP Market Culture enhanced the positive influences of both customer orientation and inter-functional coordination, on CSR. From these findings, implications for theory and practice have been discussed.

Market orientation in the banking sector: Measuring the key role of salesperson performance

This paper examines the relationship of customer orientation – at both the organizational and the individual sales level – on salesperson performance for financial products. A survey of 146 sales managers of different Spanish banks was analyzed using structural equation modeling. The results provided here highlight the relevant mediating role of salesperson customer orientation on sales performance and reinforces the role of salespeople in achieving an appropriate organizational market orientation.