SME Internet use and strategic flexibility: the moderating effect of IT market orientation

Abstract

One of the most important topics in the marketing literature has been the concept of market orientation. However, questions remain as to the dynamics of how market orientation translates into intermediate capabilities. This study explores relationships among different types of Internet usage, IT market orientation (the extent to which IT is aligned to manage customer and competitor information and internal activities), and strategic flexibility (firm capability to respond to the need for change). Specifically, use of the Internet for communication with relevant stakeholders, owing to its market-sensing potential, should be positively and significantly related to strategic flexibility for SMEs with more IT market-oriented alignment. The market-sensing potential of Internet communication to impact strategic flexibility positively for SMEs is likely to be lost under low IT market-oriented-alignment conditions. In contrast, IT market orientation should not moderate the relationship between Internet use for transactions with relevant stakeholders and strategic flexibility, given that the typical order taking and processing is a static, routine function for SMEs. Results supported hypothesised relationships. By delineating the type of Internet usage and required IT alignment that contribute to leveraging the Internet effectively, findings hold implications for future research by clarifying boundary conditions for Internet effects. Specifying how and when Internet use promotes strategic flexibility, an important enabler of competitive advantage, helps small business owner/managers better utilise their limited resources.     

The Internet as a Shopping/Purchasing Tool: An Empirical Investigation

ABSTRACT

Despite prolific growth in the number of Internet web sites, significant increases in the advertising and other promotional expenditures for Internet advertising, and the fact that millions of consumers are shopping for and spending billions of dollars purchasing products via the Internet, marketers have a limited understanding of Internet-related consumer behaviors. This study presents the results of an empirical study designed to investigate the degree to which one segment of that market–college/university students–has access to the Internet, shops for and purchases products via the Internet, and perceives the Internet as an alternative to more traditional shopping methods. More general uses of the Internet by this market segment are also explored, as are the impacts of consumer knowledge and experience with the Internet on on-line shopping and purchasing.     

The moderating effect of brand orientation on inter-firm market orientation and performance

Abstract

While prior research has shown that market and brand orientation are key contributors to successful business performance, research to date has not fully explored how inter firm collaboration for these two key orientations can enhance business performance. The purpose of the paper is to investigate the relationship between inter-firm market and performance; to test for the moderating role of brand orientation in that relationship. A total of 169 completed pairs of surveys were collected of small and medium enterprises operating internationally in a variety of industries in Switzerland. The results show that inter-firm market and brand orientation are two antecedents of marketing and financial performance. The impact of inter-firm market on marketing and financial performance is significant when the brand orientation is favorable. This study extends previous research by examining the moderating role of brand orientation on inter firm market orientation, which is important, especially for firms wanting to increase their brand reputation by entering into partnerships with other firms. Further research is indicated, to identify the key moderators of the driving force of inter-firm market in relation to business performance and the reason why maintaining a strong brand presence is important in the international marketplace.     

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.     

The Internet,Strategy and Performance: A Study of Australian Export Market Ventures

ABSTRACT

This study examines the impact of the Internet, firm-specific characteristics, market characteristics, and export marketing strategy on export marketing performance. The unit of analysis was an individual product/market export venture. Data were gathered via a self-administered mail survey of 315 Australian firms involved in exporting. The findings indicate that, when the Internet was used for communication purposes and to provide the firm with a competitive advantage, it had a significant impact on export marketing performance. Firm-specific characteristics and export marketing strategy also had a significant impact on export marketing performance.     

Entrepreneurial orientation,commitment to the Internet and export performance in small and medium sized exporting firms

This paper investigates links between entrepreneurial orientation, commitment to the Internet and export performance in small and medium sized firms. The central argument is that entrepreneurs are more likely to use the Internet to develop export market opportunities, and to have better export performance than less entrepreneurial firms. In testing this proposition, a measure of ‘commitment to the Internet’ was developed and used in a mail survey of UK exporters. The results show that firms with high entrepreneurial orientation are more committed to the Internet and have better export performance than firms with low entrepreneurial orientation.     

The Impact of Personality Variables,Prior Experience,and Training on Sales Agents' Internet Utilization and Performance

ABSTRACT

Emerging literature on the impact of the Internet on business-to-business (B2B) marketing has primarily focused on examining this issue from the perspective of manufacturers and buyers. This study focuses on the sales agent, a third prominent actor in B2B markets, and tests a conceptual model that relates a sales agent's personality, demographic, and user-situational constructs to that sales agent's Internet utilization for selling activities. Further, the model tested in this study relates a sales agent's Internet utilization to perceived sales performance. Findings in this study indicate that internal locus of control, learning orientation, and sales related Internet training relate positively to a sales agent's Internet utilization, and that a sales agent's age relates negatively to Internet utilization. Further, the results support a positive relationship between a sales agent's Internet utilization and sales performance. This study emphasizes that the Internet can be a productive tool for sales agents. The implications of the results of this study for sales agents with respect to training and recruitment are discussed and avenues for future research are suggested.     

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.     

The Relative Impact of Market Orientation and Entrepreneurship on Export Performance: Do We Really Know Enough?

ABSTRACT

The impact of international corporate entrepreneurship and market orientation on firm performance is well acknowledged in the literature, but their relative influence on the performance of exporting firms remains inconclusive. This study seeks to help clarify the influence of these organizational resources by introducing a third complementary resource, namely commitment to learning. The results, based on data obtained from a survey of exporters in China, show that commitment to learning mediates the relationship between market orientation and entrepreneurship. It was also found that market orientation could be a double-edged sword for exporters in that it can enhance export satisfaction through entrepreneurship, but it can also have negative impact on profit.     

A review and evaluation of market orientation research in an emerging African economy

ABSTRACT

The paper synthesizes the level of strategic market orientation of firms operating in the emerging economy of Ghana over the last two decades. It dwells on market orientation studies in general, and the banking industry and exporting firms in particular. Market orientation has a positive relationship with performance for both foreign and domestic firms across the many studies. Foreign firms in general appear more market oriented due to experience effect and relationship with parent organizations. As competition heats up in the banking industry, organizations need to be more innovative to sustain their performance or to survive. For exporting firms, there is the need for decreased formalization and increased decentralization so as to enhance the levels of market orientation. The paper develops propositions to guide organizations in applying marketing principles in the running of their business activities. Further, the paper provides an update on the literature with suggestions for future research in the theory and practice of strategic market orientation in the context of the study.     

Community Banks and Internet Commerce

ABSTRACT

This study examines the factors affecting a community bank's decision to develop Internet-based applications using survey data from representative community banks and secondary data regarding the financial institution's financial performance data (Call Reports). The results from a logistic regression show that there is a significant size effect in developing web and Internet commerce applications. Other factors determining Internet commerce activities include IT costs, use of PC-banking options, and the perceived competition in the local commercial loan markets.     

Market Orientation in Vertical Business Networks

Abstract

This research addresses three questions: (1) Why are some business network firms more market orientated than others? (2) What effect does the environmental uncertainty have on the network performance impact of market orientation activities performed by a network firm? (3) Does network embeddedness influence the effectiveness of a firm's market orientation activities? The findings from a study on a vertical grocery network suggest that the performance impact of market orientation activities depends on the network identity of the network firm. Network embeddedness of a network firm is found to enhance this performance link. Finally, uncertain market environments favor down-stream allocation of market orientation activities in our sample.     

Customer Orientation in Chinese Industrial Firms and Global Marketing Implications

Abstract

The study focuses on the moderating role of environmental context (demand unpredictability and technological turbulence) and technological context (production technology routineness and product complexity) on the relationship of customer orientation with market performance relative to the industry in Chinese state-owned industrial firms. The results show significant moderating effects of technological turbulence and production technology routineness: the greater the technological turbulence and the more routine the production technology, the stronger the customer orientation-market performance relative to the industry relationship. The results also show that market performance relative to the industry is positively affected by customer orientation, but inversely affected by demand unpredictability. The findings have implications for global marketing as well as for theory development.     

Internet marketing capabilities and international market growth

The Internet has been shown to facilitate elements of internationalisation such as information accumulation and network opportunities. However, there is limited understanding of how the Internet combined with marketing capabilities drives international market growth. This study, based on a sample of 224 Australian firms, develops and tests, using structural equation modelling (SEM), a conceptual model of Internet marketing capabilities and international market growth. Results indicate that firms deploying Internet marketing capabilities will benefit due to the reduction of information uncertainty and increased capacity to develop international network capabilities. Moreover, Internet marketing capabilities indirectly lead to international market growth when the firm has a high level of international strategic orientation and international network capabilities. Overall, Internet marketing capabilities enhance the firm's ability to generate other internal capabilities within the firm, which in turn have a positive impact on the international market growth of the firm.     

R&D,Advertising and the Market Value of Internet Firms: Part I

ABSTRACT

This article is the first part of the study that attempts to explain the valuation of Internet firms during the dot.com “bubble” period from 1996 to 2000. One section of the article is dedicated to detailed literature review on valuation of firms, particularly firms with a high proportion of intangible assets. Another section presents a theoretical foundation for valuation on Internet firms based on the investment opportunities approach to valuation of growth shares. Finally, the last section presents testable hypotheses regarding the relationships between market values of Internet firms and several independent variables.     

Servant Leadership,Proactive Work Behavior,and Performance Overall Rating: Testing a Multilevel Model of Moderated Mediation

ABSTRACT

Purpose: The goal of this paper is to investigate whether salesperson proactive behavior mediates the relationship between sales manager servant leadership and salesperson overall performance rating by the sales manager. Moreover, it examines whether salesperson customer orientation and political skill moderate the sales manager servant leadership ? salesperson proactive behavior ─ salesperson overall performance. Design/methodology/approach: Empirical analysis is based on dyadic data from 181 industrial salespeople and their sales managers in a range of different industries (including both manufacturing and service industries). To analyze the multilevel moderated mediation process, this investigation uses Multilevel Structural Equation Modeling (MSEM). Findings: Sales manager servant leadership was positively related to salespeople overall performance rating through their proactive behavior except when their customer orientation was low. Moreover, this relationship between sales manager servant leadership and overall performance rating through proactive work behavior was stronger the greater the salespeople consumer orientation and political skill. Research implications: The study suggests that sales manager servant leadership is indirectly related to salesperson overall performance rating through salesperson proactive behavior. The findings also support subsequent research on salesperson values, skills, and behaviors as moderators in the servant leadership – proactive behavior – overall performance rating relationship. Understanding how these salesperson factors interact with sales management leadership to produce organizational outcomes (e.g., stress, engagement, organizational commitment) are questions that sales researchers may wish to pursue via further study. Practical implications: Sales managers should employ servant leadership to stimulate salespeople proactive work behavior. This study clearly indicates the salespeople need to adopt customer orientation and to have political skill. Hence, sales managers need to try to improve the customer orientation and the political skill of their salespeople through selection procedures or training programs. Originality/value: The relationship between sales manager servant leadership and salesperson overall performance through proactive work behavior has not been addressed and tested in the literature to date.     

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.     

Data Warehousing and the Internet

Abstract

The technologies of the Internet and data warehousing are converging. This paper explores the synergies of these two revolutionary technologies. The strategic importance of data warehousing is presented through an examination of the applicable technology, growth of the market, and the factors encouraging that growth. The convergence of data warehousing technology and the Internet is discussed and strategic implications for modern businesses are addressed.     

Impact of market orientation on firm’s customer-based performance: the moderating role of employee orientation

ABSTRACT

In this paper, we examine the influence of employee orientation (EO) on converting constituent dimensions of market orientation (MO) into customer-based performance (CBP) and consider the robustness of these relationships in the context of firm age and size. Based on a sample of 410 mid-to-senior-level managers working in UK service industries, we find that all three dimensions of MO positively influence CBP. While highlighting the utility of employing a multidimensional approach to evaluate the customer-based outcome of MO implementation we highlight the nuanced role of EO in strengthening the MO–performance relationship and emphasise the crucial role employees play in implementing different strategic orientations in a perceivable way to customers.     

The Effect of Management Leadership Style on Marketing Orientation,Service Quality,and Financial Results: A Cross-Cultural Study

ABSTRACT

The significance of customer and market orientation has been closely examined in the marketing and management literature. Recent research has focused on how to assess the antecedents of market orientation and the effect of market orientation on business performance via various mediating and situational variables. The present study investigates the impact of management leadership style on market orientation and collaboration between the management and the employees. Their effects on business performance are also scrutinized. The study was conducted on a sample of managers in Taiwan and the United States. A cross-country comparison yields many interesting findings and important managerial implications, as well as future research directions.