Marketing planning: Operationalising the market orientation strategy

Abstract

Despite strong empirical validation of the relationship between market orientation and business performance, the literature is inconclusive on the implementation of the strategy. This paper reviews the implementation of market orientation, and investigates the associations between market orientation and marketing planning and their associations with business performance. A survey of 216 Australian larger business organisations was conducted to find evidence of these relationships. The results highlight a close association between market orientation and marketing planning, with virtually the same level of association between them, and the business performance measures used. This evidence suggests that they arguably represent the same domain. The results suggest that marketing practitioners may use the marketing planning technique as an intangible productive resource to operationalise the market orientation strategy, and use it to design a specific style and magnitude of market orientation suitable for an organisation.     

Learning from the world? Horizontal knowledge flows and geopolitics in international consulting firms

This paper examines the nature of the contemporary multinational corporation (MNC) through a study of the use of knowledge management systems (KMS) in four major international consulting firms. In particular, we explore whether and how such systems facilitate horizontal (inter-subsidiary) flows of knowledge, as described in the network view of the MNC. Our analysis reveals the presence of horizontal flows within the four firms, but flows that are contextually constrained and partly shaped by geopolitical power relations. Thus, our study gives some support to the image of the MNC as a network whilst highlighting the contextual limits of horizontal knowledge transfer and, importantly, the geopolitical conditions under which such knowledge transfer takes place. At the same time, it challenges the claim that consulting firms are model organizations in the area of knowledge management as well as the more negative view that questions the ability of KMS to facilitate knowledge transfer.     

Disentangling the effect of services on B2B firm value: Trade-offs of sales,profits, and earnings volatility

In the face of declining business and growing pressures from low-cost competitors, many business-to-business (B2B) manufacturers have moved from their previously successful product-centric strategies to more service-oriented business models. Yet despite their substantial investments in services, firms fail to understand the performance ramifications of these offerings. With a longitudinal data set (2001–2016) of 227 B2B manufacturers listed in the S&P 1500 index, this study disentangles the simultaneous effects of financial-based mechanisms that link the service ratio (i.e., share of a firm's revenue generated from selling services) to firm value. The findings reveal significant trade-offs across these mechanisms. Although the service ratio monotonously boosts sales growth, it has U-shaped curvilinear relationships with profitability and earnings volatility. These effects also depend on industry- and firm-level factors. Industry maturity positively moderates the effects of the service ratio on sales growth and profitability. However, business scope has an adverse effect on the service ratio–profitability relationship. Finally, industry turbulence negatively moderates the effect of services on earnings volatility.     

Reference Publication Year Spectroscopy (RPYS) with publications in the area of academic efficiency studies: what are the historical roots of this research topic?

In this study, we explore the historical roots of the relatively new topic in scientometrics of academic efficiency assessments. We are interested in the contributions of researchers from the past which have been revealed as important for the topic in the long run. The technique of Reference Publication Year Spectroscopy (RPYS) has been recently introduced which is based on the analysis of the frequency with which references are cited in the publications of a specific research field (here: academic efficiency assessments). The study is based on papers conducted for a systematic review of empirical articles on technical efficiency in academic research production: 60 papers (published between 1992 and 2012) and 1314 cited references. Results indicated that 5 peaks are clearly identifiable until 2000. They correspond, respectively, to the years 1957 (The founding article of Farrell), 1978 (Proposition of a new promising approach: the Data Envelopment Analysis (DEA) by Charnes et al.), 1988 (Research-teaching multi-output model and integration of quality indicators), 1990 (DEA in the service of Research Assessment Exercise) and 1997 (Introduction of weight restrictions in DEA). The peaks are described with the underlying publications and recent developments (since 2000) in the area of academic efficiency studies are outlined.     

Fast Kernel Smoothing of Point Patterns on a Large Network using Two‐dimensional Convolution

We propose a computationally efficient and statistically principled method for kernel smoothing of point pattern data on a linear network. The point locations, and the network itself, are convolved with a two‐dimensional kernel and then combined into an intensity function on the network. This can be computed rapidly using the fast Fourier transform, even on large networks and for large bandwidths, and is robust against errors in network geometry. The estimator is consistent, and its statistical efficiency is only slightly suboptimal. We discuss bias, variance, asymptotics, bandwidth selection, variance estimation, relative risk estimation and adaptive smoothing. The methods are used to analyse spatially varying frequency of traffic accidents in Western Australia and the relative risk of different types of traffic accidents in Medellín, Colombia.     

Gender-diverse boards and audit fees: What difference does gender quota legislation make?

We investigate the effect of board (audit committee) gender diversity on audit fees in the French context. We also examine whether the relationship between the proportion of female directors and audit fees is moderated by the enactment of the gender quota law in 2011. We use the system GMM estimation approach on a matched sample of French firms listed in the SBF 120 index between 2002 and 2017. Consistent with the supply-side perspective, we contend that female independent directors and female audit committee members, by improving board monitoring effectiveness, affect the auditor's assessment of audit risk, resulting in lower audit fees. Our findings also document that, by breaking the glass ceiling, the effectiveness of the gender quota law lies not in increasing the proportion of female insider directors, but in boosting the appointment of female independent directors and female audit committee members. Using the difference-in-difference approach, our results reveal that female independent directors and female audit committee members are more willing to assert their monitoring skills after the quota law, leading to lower audit fees. Moving beyond tokenism, we show that, after the quota law, the negative impact on non-audit fees is strengthened only for female independent directors.     

NAIRU and productivity shocks: evidence from three gigantic economies

This article investigates NAIRU which stands for Non Accelerating Inflation Rate of Unemployment and its trend in three of the world gigantic economies to mention orderly USA, Japan and China. A Vector Autoregressive Regression model estimated to study the reaction of NAIRU to shocks imposed by labour productivity. Results indicate both productivity shocks and NAIRU fluctuations have counter effects.     

Strategy of firms in unstable institutional environments

Institutional instability as one of the most common characteristics of developing countries and its impacts on the strategy of firms is explored in this study. We conducted detailed field research based on 32 semi-structured interviews with top managers of textile firms in Iran. Results show that managers in developing countries engage in a political struggle to ensure that institutional uncertainty is balanced by a reasonable political give and take. It is argued that power and legitimacy are key resources for firms' survival in institutionally unstable environments. Some theoretical foundations for the strategy of firms in unstable institutional environments are developed.     

Influence of cultural divergence on consumers' perception towards reconstructed products: A qualitative enquiry

The purpose of this study is to understand whether consumers from different cultures have varied perception towards reconstructed products. Cultural divergence concept provides the theoretical support for the study. Data are collected from consumers of two culturally diverse societies (India and the United States). We use grounded theory for interview and data analysis. From the data, 23 open codes and 8 axial codes for Indian consumers and 28 open codes and 8 axial codes for the American consumers are generated. The key finding of our study suggests that culture plays a decisive role in shaping consumers' perception towards reconstructed products. The other findings of our study indicate that consumers of both societies are influenced by other factors that include product‐ or process‐related factors, brand‐ or store‐related factors, and individual factors. We discuss policy level, firm level, and nonprofit or charity level implications. Finally, limitation and scope for future research are outlined.     

Fatality rate of pedestrians and fatal crash involvement rate of drivers in pedestrian crashes: a case study of Iran

The aim of this study was to uncover patterns of pedestrian crashes. In the first stage, 34,178 pedestrian-involved crashes occurred in Iran during a four-year period were grouped into homogeneous clusters using a clustering analysis. Next, some in-cluster and inter-cluster crash patterns were analysed. The clustering analysis yielded six pedestrian crash groups. Car/van/pickup crashes on rural roads as well as heavy vehicle crashes were found to be less frequent but more likely to be fatal compared to other crash clusters. In addition, after controlling for crash frequency in each cluster, it was found that the fatality rate of each pedestrian age group as well as the fatal crash involvement rate of each driver age group varies across the six clusters. Results of present study has some policy implications including, promoting pedestrian safety training sessions for heavy vehicle drivers, imposing limitations over elderly heavy vehicle drivers, reinforcing penalties toward under 19 drivers and motorcyclists. In addition, road safety campaigns in rural areas may be promoted to inform people about the higher fatality rate of pedestrians on rural roads. The crash patterns uncovered in this study might also be useful for prioritizing future pedestrian safety research areas.