Market Orientation,Competitive Strategy and Firm Performance

Abstract

In this paper, we investigate the mediating effects of a firm's competitive strategy in the market orientation-performance relationship. Based on a sample of 371 manufacturing firms in China, evidence was found that the three dimensions of market orientation exert different effects on competitive strategy and performance. Among them, customer orientation has the strongest association with competitive strategy and market performance. This lends credence to a componentwise approach on the study of the relationship between market orientation and performance. The results of structural equation analyses indicate that the mediating effect of competitive strategy is mainly revealed in innovation strategy, the most vital factor in creating superior value for the company in the emerging market. Limitations of this study and implications for future studies are discussed.     

Market Orientation and Firm Performance: An Empirical Analysis of Ghanaian Microenterprises

ABSTRACT

While previous researchers have explored the relationship between market orientation and firm performance in larger organizations, such studies in microenterprises are scarce. This empirical study uses a structural equation model to examine the role of market orientation on firm performance of microenterprises operating in Ghana. To measure market orientation, we used a well-known scale (MARKOR), and the data (N = 347) for this study were collected from Ghanaian microenterprises using personal interviews. Study results indicated that the MARKOR scale provided a good measure of market orientation in Ghanaian microenterprises. The conceptualized model provided a good fit to the relationship between market orientation and the performance of Ghanaian microenterprises, indicating that market orientation as measured by MARKOR had a statistically significant positive impact on performance. However, the explanatory power of the model was relatively low, indicating the potential impact of other factors that were not incorporated in the model. Study implications are discussed.     

Stock Market Liquidity and Firm Value: An Empirical Examination of the Australian Market

We document a positive relation between stock liquidity and firm value. We examine the mechanism through which stock market liquidity enhances firm value by dividing firm value, as measured by Tobin's Q, into three components, namely, operating income to price, leverage, and operating income to assets. Using the switch to broker anonymity as an exogenous shock to market liquidity, we show that the increase in liquidity around the shock leads to an increase in firm value. Our results suggest that higher firm value for more liquid stocks seems to stem from enhanced stock prices rather than from better operating performance.     

The Impact of Salesperson Perception of Firm Market Orientation on Behaviors and Consulting Effectiveness

The purpose of this study was to study market orientation as an antecedent of salespersons' behaviors that should, in turn, influence the ability of the salesperson to add value to the product or service. There have been many studies of personal antecedents of salespersons behaviors and performance, with little predictive success. But there are few studies of firm-level influences on salesperson behaviors and their outcomes. A survey was sent to non-retail salespeople utilizing previously validated scales for all constructs of interest. The survey responses were analyzed using structural equation modeling to test hypotheses. Results suggest that market orientation has an indirect influence on salesperson consulting through adaptive selling and active listening behaviors. Active listening fully mediates the relationship between customer orientation and salesperson consulting, while salesperson consulting fully mediates the relationship between active listening and consulting effectiveness. Half of the influence of market orientation on salesperson consulting effectiveness is direct, while the other half of its influence is indirect through those salesperson behaviors. The author provides explanations for these results and implications for managers and researchers.     

论市场契约对公允价值目标导向的影响

公允价值的出现使得会计计量属性从内容到目标更趋向于公正、公平和公开的理想状态。我国于2006年引入公允价值以来,公允价值使用结果值得探究。从研究过程来分析,公允价值目标导向始终会受到其市场契约的限制。而分析市场契约的本质,优化市场契约则有利于公允价值发挥其效力。     

Natural Environment,Market Orientation,and Firm Innovativeness: An Organizational Life Cycle Perspective

Drawing upon the corporate social responsibility literature, we investigate the moderating effects of the natural environment and the stage of an organization's life cycle on the market orientation to firm innovativeness relationship. Through 229 owners or chief executive officer respondents, our results establish evidence of (1) a positive linkage between market orientation and firm innovativeness; (2) natural environmental policy positively moderating the market orientation to firm innovativeness relationship; and (3) organizational life cycle negatively moderating market orientation to innovativeness. Our findings suggest ventures characterized as being early in the organizational life cycle are more likely to have a positive environmental policy toward the natural environment leading to a competitive advantage through firm innovativeness.     

Organizational Culture,Innovativeness, Market Orientation and Firm Performance in South Africa: An Interdisciplinary Perspective

ABSTRACT

For a sample of South African firms, this paper analyzes the relationships of firm performance and a set of organizational measures which includes organizational culture and climate, market orientation and innovativeness. These organizational measures are drawn from three different disciplines–organizational behavior, strategy and economics. The replicative study is framed in an extended model of competing organizational values which have been used in 13 countries including three transition economies (Vietnam, China and Russia). The work has also been done under a variety of conditions–for example, the US in a period of study growth, Thailand during the Asian Crisis and Hong Kong after the handover to China. Comparisons are made between South African results and those of firms from a group of five industrial countries. Market Orientation is the most important explainer of performance of the South African firms, and Innovativeness is also important. Specific elements of Organizational Culture are apparently less important in South Africa than elsewhere.     

Constituent Market Orientation

This paper expands the scope of a market orientation from downstream markets to most of the major constituents of the firm. In so doing this paper addresses four questions: 1) Can constituent market orientation be measured based on modifications of the theory, concepts and measurement scales developed by Kohli and Jaworski (1990, 1993)? 2) What are the antecedents for a constituent market orientation? Are they similar across constituents? 3) What are the consequences of constituent market orientations? Which are unique for a constituent? Which stem from the sum of orientations towards all constituents? 4) What are the historic and situational moderators of orientations and consequences?     

Customer Lifetime Value and Firm Valuation

SUMMARY

Unlike most marketing metrics, CLV provides information which is directly relevant to marketing decision makers, non-marketing executives such as CFOs, and financial analysts. This paper highlights why and how CLV is financially relevant. It explicitly compares CLV-based valuation with four finance-oriented methods (DCF, P/E ratio, customer counting, and extrapolation). We also discuss implications for marketing managers, financial executives as well as educators.     

Market Orientation and Nonprofit Organizations

This paper discusses the concept of market orientation within the context of nonprofit organizations. Three elements of market orientation-market intelligence, intelligence dissemination, and responsiveness-are examined for their association with performance in nonprofit organizations. A conceptual framework is developed which identifies select senior management characteristics, organizational characteristics, and external factors as key determinants of market orientation and subsequent performance of nonprofit organizations. In all, fourteen propositions are advanced for future research. This conceptual work posits that nonprofit decision makers can create a market orientation by focusing on specific organizational and senior management characteristics, and adapting to certain external factors. The ultimate objective is to achieve and sustain organizational performance.     

Firm Newness,Entrepreneurial Orientation,and Ethical Climate

Faced with the liability of newness, a scarcity of resources, and concerns of survival, new firms frequently encounter difficult ethical decisions and might be pressured to make choices that run counter to the tenets of more developed ethical and moral reasoning. This study explores the impact of newness and entrepreneurial orientation on the ethical climate of firms. Data collected from 304 individuals across 37 firms indicated that firm newness was more strongly related to ethical climate than was an entrepreneurial orientation. Results also revealed that firm newness may be usefully conceptualized in both continuous and categorical terms, with each operationalization holding a somewhat different relationship with climate. Finally, results revealed that firm size was related to several types of ethical climates.     

Creating a Market Orientation

A market orientation is a business culture in whichall employees are committed to the continuous creation of superiorvalue for customers. However, businesses report limited successin developing such a culture. One approach to create a marketorientation, the approach taken by most businesses, is the programmaticapproach, an a priori approach in which a business uses educationprograms and organizational changes to attempt to implant thedesired norm of continuously creating superior value for customers.A second approach is the market-back approach, an experientialapproach in which a business continuously learns from its day-to-dayefforts to create and maintain superior value for customers andthereby continuously develops and adapts its customer-value skills,resources, and procedures. Theory suggests that both approachescontribute to increasing a market orientation. It also suggeststhat when the a priori education of the programmatic approachis sharply focused on providing a foundation for the experientiallearning, the combined effect of the two learning strategiesis the largest. The implication is that the two strategies mustbe tailored and managed as a coordinated joint strategy for creatinga market orientation.     

Misconceptions about Market Orientation

Given the benefits of a market orientation, why do so many organizations fail to become market-driven? One reason is confusion over what it means to be market-driven. Some organizations have become “customer compelled ” and try to respond to whatever their customers say they want, without exercising any discipline. Others argue that it is sometimes best to “ignore the customer.” This latter view finds listening to customers deficient as a guide to action. This is a misconception based on three false dichotomies: (1) that you can either lead or follow customers, (2) that you can't stay close to both current and potential customers, and (3) that a technology push can't be balanced with a market pull.     

Permanency of CSR Activities and Firm Value

So far overlooked by the international business ethics literature, we introduce, characterize, and normatively analyze the use of affective ties and networks in South Korea from an ethical point of view. Whereas the ethics of using Guanxi in China has been comprehensively discussed, Korean informal networks remain difficult to manage for firms in South Korea due to the absence of existing academic debate and research in this field. In this study, we concentrate mainly on the question of whether foreign firms will and can use affective ties in Korea. The informal social network forms are classified and contrasted with the conventional ethical approaches used in international business ethics (relativism, universalism, and social contract theory) to assess which categories can be regarded as ethical or unethical. Finally, foreign firms are advised how to cope with and use different affective network types. Although the nature of affective ties and networks in Korea differs from that found for instance in China (Guanxi), consistent with the conclusion of prior research, we recommend particularistic analysis and decision making regarding the circumstances in which to conclude affective ties and networks and when to opt out. We conclude that foreign firms in Korea should invest in establishing Inmaek, refrain from engaging in Yonjul, and support host country nationals’ Yongo ties. Moreover, it is suggested that foreign firms should find ways to monitor and manage informal ties effectively.     

外部市场需求冲击与企业工资调整

本文尝试从理论和实证两方面验证外需变化对企业工资的实际影响。本文构建包含外部市场需求冲击的理论框架诠释了企业外需变化会直接影响企业盈利能力,引发工资调整。接着,本文采用全球200个国家(地区) 3800种的HS6分位产品进口数据,匹配中国企业的出口信息,测算了每个企业基于目的国—产品的国际外需变化,结合2010—2013年中国海关和工业企业库进行实证。结果发现:控制企业外部供给和内需冲击等因素后,外部需求冲击对我国企业工资有显著的正向影响,10%的外需提高能使企业工资上调0. 173%;企业外部市场暴露加强了外需冲击对企业工资的作用;外资企业及我国港澳台地区企业、低技术行业内企业工资遇到外需冲击调整幅度较大。本文研究有助于从微观企业视角厘清国际外需变化对我国劳动力市场的影响,对逆全球化下保证劳动力收入有着重要的政策含义。     

Market Orientation and Organizational Learning Capabilities

The platform of contemporary marketing thought is founded upon the marketing concept. While there has been much debate about the precise nature of this concept, related discussion concerning its manifestation, in the form of a firm's market orientation, has developed to suggest that it is a feature exhibited by organizations possessing superior skills in understanding and satisfying customer needs. Despite the favourable externalities likely to accrue to an organization that is market oriented, it has been claimed that for a firm to achieve its full potential to learn about the marketplace, instilling a market orientation is only a first principle. While market orientation provides the norms for responding to the marketplace, this needs to be complemented by appropriate mechanisms and processes for higher-order learning to occur. This article examines such a conceptual argument and empirically investigates the relationship between two key constructs: market orientation and organizational learning capabilities. Data were generated from a survey of medium and large industrial firms and five dimensions of organizational learning capability items are tested against two different groups of firms in terms of their degree of market orientation. As contrasted with low market orientation firms, organizations characterized by high levels of market orientation perceived greater organizational learning capability with regard to the dimensions of strategic awareness, operational flexibility, strategic development processes and managerial skills. Discussion is given to these findings and implications are drawn for business executives and future research.     

Market Orientation Plus: Antecedents and Consequences of Market Orientation and Corporate Social Responsibility in Mexico

ABSTRACT

The evolution of the market orientation (MO) concept toward stakeholder-based corporate social responsibility (CSR) has been recognized recently. Nevertheless, the two variables remain conceptually and operationally different, and very little is known about the relationship between MO and CSR. The current study addresses this question empirically by embedding measures of MO and CSR into a framework of antecedents and consequences in the context of an emerging economy (Mexico). The results show that companies with high levels of MO also attain high levels of CSR. Further, CSR partially mediates the relationship between MO and corporate reputation and fully mediates the relationship between MO and employee commitment. Informal organization has a positive influence on MO and fully mediates the relationship between innovation and MO. The findings may encourage companies in emerging economies to implement CSR initiatives without fearing that their focus on customer and competitor orientation will be negatively affected.     

Market Orientation and Raw Material Control

Much of the existing literature on market orientation emphasizes the role played by the competencies of companies in selling products. However, in industries that rely on a natural resource sector for its primary input, another constraint may dominate: the limitations on supply of that input. We examine this issue in the context of a particular natural resource sector, the fishery, as a case study of the more general phenomenon. Using the example of Norway's apparent lack of market orientation as a supplier of fresh fish, the paper demonstrates how the characteristics of natural resource sectors as well as how public policies are used to manage those sectors may place significant roadblocks in the way of developing a market orientation by the industries that depend on those sectors for raw material. The paper notes that there has been an increased consumer demand for fresh fish, away from the frozen product. This, in principle, should lead to an increased need for a market orientation by sellers and closer relationships between the primary processors and the distributors of fresh seafood. However, several barriers, including those associated with fishery management, hinder this process. These include the presence of a structure where earnings from fishing are independent of quality, the seasonality of supplies in the raw fish markets, the way fish quotas are managed, the structure of first hand sales, and the underdeveloped relationships between supermarkets and the primary processors. In short, the analysis identifies critical linkages between fishery management and the marketing of seafood. Its broader contribution is to increased understanding of the interdependencies between the marketing of natural resource-based products and public management of that resource.     

Entrepreneurial Orientation and Firm Performance in New Ventures and Established Firms

Lots of studies suggest a positive relationship between entrepreneurial orientation (EO) and firm performance; however, the empirical findings are inconclusive. There are two explanations for the contradictory results: the performance implication of EO is context‐specific and the relationship between EO and performance may be curvilinear. Consulted on the perspective of the liability of newness and taken together these explanations, this paper probes into the difference in the EO‐performance linkage between new ventures and established firms. We find that the relationship between EO and performance is inverse U‐shaped in new ventures but positive in established firms. Finally, we discuss our contributions, implications, and possible future extensions.     

图书出版产业结构、企业行为与企业绩效

本文以产业组织理论为基础,结合企业战略理论,深入探讨了图书出版产业市场结构、出版企业具体市场行为和市场绩效之间的相互关系,并利用调查数据对各种相互关系进行了实证检验.结合现状分析与实证研究结果,我们认为图书出版产业组织相关变量的因子划分方法可以很好地对变量数据进行拟合,同时还发现中国图书出版产业的市场结构、出版企业的市场战略、市场行为以及市场绩效等因素之间都存在显著的相互影响关系.实证结果表明,出版企业的资源质量、创新行为、产品决策等因素对出版企业最终市场绩效具有显著影响;而出版企业的资源规模以及出版产业的市场需求、市场壁垒和市场竞争等因素对出版企业市场绩效的影响程度则很弱.