Competing in an emerging market: antecedents and consequences of market orientation and the role of environmental factors

Adoption of market orientation is an investment decision involved with benefit and cost considerations. How environmental factors influence the adoption of market orientation has received scant attention in the literature. This study fills the void by investigating the environmental antecedents to market orientation. In addition, the research explores the role market orientation and customer satisfaction play for firms operating in an emerging market in search of growth and prosperity. Based on data collected from India, one of the BRIC nations and an important emerging market, results show that turbulent and dynamic market conditions foster an adoption of market orientation, which leads to high levels of customer satisfaction, and in turn leads to customer loyalty. Managerial implications and future research directions are discussed.     

External environment and the moderating role of export market orientation

This research has two main objectives. The first is to fill the knowledge gap on the role which the external environment plays in the strategic behavior of exporting companies, taking into account the psychological distances between the domestic and foreign markets. The second aim is to clarify the role that market orientation plays in export activity, since the literature review shows conflicting results. The study provides insight into these issues through hypothesis testing of a conceptual model using a sample of 212 Spanish exporting companies. The results lead to two major conclusions: (a) in turbulent environments, exporting firms adapting the marketing mix program to the needs of foreign markets obtain a better export performance in highly competitive and psychologically distant markets; (b) although market orientation has a direct and positive effect on export performance, its main role is to support strategic decision making in exporting companies. In addition, market orientation moderates the relationship between marketing mix adaptation and export performance.     

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.     

New entrepreneurial ventures in a globalized world: The role of market orientation

The present study examines the performance consequences of a market orientation for new entrepreneurial ventures in a globalized world. We show that market orientation indeed positively impacts the performance of new entrepreneurial ventures, regardless of their geographical setting. While market orientation turns out to be a general success factor in a globalized world, the strength of the performance relationship however is contingent to the national culture as one major differentiator between geographical settings. The effect turns out to be stronger in collectivist and high uncertainty avoidance cultures. Findings are derived based on large samples with German and Thai new entrepreneurial ventures. Partial least square is applied as the method of analysis.

Relating strategic market orientation and market performance: role of customer value types

A service provider achieves competitive advantage by configuring appropriate strategic orientation and customer value type. This paper addresses three important issues: (i) which customer value type (economical, relational or technical) is important for bank customers? (ii) which strategic market orientation (customer or competitor) helps in achieving the desired value type? and (iii) which value type significantly predicts market performance? We propose that a strategic market orientation pursued by a firm shall influence the customer value it intends to offer so as to maximize the market performance. Using data collected from 538 bank customers, this study reveals that when there is a perfect match between strategic market orientation and value being perceived by its customers, a firm shall achieve strategy-value fit and realize optimal market outcomes in the form of customer satisfaction, acquisition, retention, cross-selling, and up-selling. Furthermore, a bank shall realize maximum level of market performance if it pursues both customer and competitor orientation and endeavors to deliver technical/functional value to its target customers. The paper concludes with managerial implications and future research directions.     

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.     

Impact of responsive and proactive market orientation on SME performance: The moderating role of economic crisis perception

This study examines the relationship between market orientation (MO) and the performance of small and medium‐sized enterprises (SMEs) within the context of economic crisis. It distinguishes between two levels of MO: responsive market orientation (RMO) and proactive market orientation (PMO). Data were collected on a sample of 300 SME. Findings indicate that SMEs, confronted with an economic downturn, use a MO approach that is both proactive and responsive, and reveal the moderator effect of the SME manager's perception of an economic crisis on PMO/RMO–performance. Research and practical implications are discussed. © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Toward a greater understanding of the market orientation and internal market orientation relationship

The study explores the relationship between market orientation (MO) and internal market orientation (IMO) using the process model of MO development. Data from 370 nonprofit organizations were analyzed using structural equation modeling with maximum likelihood estimation technique. The comprehensive CFA marker method was used to partial out the influence of social desirability bias on the substantive relationships. The study finds that MO works through IMO to elicit desirable employee outcomes, which also contributes to performance outcomes. IMO does not offer direct performance benefits, but it partially mediates the effect of MO on employee-related outcomes. Competing models offering alternative explanations are ruled out empirically by the superior fit of the theoretical model with the data. The study integrates IMO in Kohli and Jaworski’s model of antecedent and consequences of MO and encourages practitioners to embed IMO in their MO development plans.     

The moderating role of managerial ties in market orientation and innovation: An Asian perspective

This empirical study contributes to the extant literature by investigating the relations among market orientation, managerial ties and innovation simultaneously and interactively, from an Asian perspective. Our findings reveal that customer orientation and interfunctional coordination have a positive impact on innovation. Moreover, managerial ties play a moderation role in the market orientation–innovation linkage. Business ties enhance the relation between customer orientation and interfunctional coordination and innovation. On the other hand, business ties and competitor orientation have a negative interaction effect on innovation. In addition, political ties also dampen the relation between interfunctional coordination and innovation. Such results add new insights to the extant literature and provide implications for future research and marketing practices in Asia.     

Strategic hybrid orientation between market orientation and brand orientation: guiding principles

Strategic orientations underpin the firm’s managerial decisions and influence its performance. Firms can combine multiple strategic orientations to achieve superior performance. Market orientation and brand orientation are well-developed, separate, strategic approaches. A 2013 study conceptually proposed a strategic hybrid orientation comprising two types: (a) market and brand orientation and (b) brand and market orientation. The current study is qualitative, using small-to-medium enterprises to investigate strategic hybrid orientations. Through propositions, the paper explains the theory and processes underlying the two hybrid orientation types. The propositions form the guiding principles for the strategic management of the hybrid orientation. The implications for managerial practice show that quite different capabilities apply to the execution of each strategic hybrid type.     

Predicting market orientation through internal market orientation as culture and behaviour: an empirical application in Spanish hotels

The aim of this study is to analyse how the internal market orientation, considered from a dual perspective, cultural and behavioural, affects the development of external market-oriented behaviours by improving the attitudinal results (affective commitment and job satisfaction) of the internal customers. An empirical study was carried out, based on the perceptions of 68 managers and 296 supervisors at four- and five-star hotels in Gran Canaria (Canary Islands, Spain). The findings show that (1) the internal market orientation (IMO) has a positive influence on the effective development of market orientation behaviours in managers and supervisors; (2) the IMO has a positive influence on the affective commitment and job satisfaction of hotel managers, but not supervisors; and (3) greater affective commitment and job satisfaction have no significant effect on market orientation behaviours in hotel managers or in supervisors. Based on the study results, the paper concludes with a discussion and implications for practitioners.     

Entrepreneurial orientation and firm performance in non-profit service organizations: contingent effect of market orientation

Prior research indicates that an inverted U-shaped relationship exists between entrepreneurial orientation (EO) and firm performance. This study argues that the inverted U-shaped relationship may depend on the level of market orientation (MO). A moderated hierarchical regression based on a sample of 307 non-profit service organizations reveals that an inverted U-shaped relationship exists between each sub-dimension of EO and performance. However, these relationships do not exist for each sub-dimension of MO. When both market intelligence generation and responsiveness are high, the relationship between innovativeness and performance will be in a linear form. Under the condition of high-market intelligence responsiveness, the higher proactiveness will lead to a higher performance level. These findings will better our understanding of the relationship between EO and firm performance.     

Impact of individual market orientation on selling and customer orientation

ABSTRACT

We analyze the direct effect of individual market orientation on selling orientation-customer orientation of corporate insurance agents licensed in an emerging market based on the data collected using a random survey of corporate insurance agents in the Life Insurance sector in India. The results indicated that individual market orientation had a significant relationship with selling orientation, but the intensity was weak. However, causal relationship between individual market orientation and customer orientation was moderate. Future research should focus on analyzing the influence of the dimensions of individual market orientation on employee commitment, loyalty and should analyze the moderating effects of various associated variables. The findings indicate that efforts should be made to generate market-oriented behavior among individuals to propel selling orientation and customer orientation.     

Choosing between internal and external development for innovation projects: antecedents and consequences

Unlike alliance proponents, we posited that high-tech small firms (HTSFs) may not prefer interfirm collaboration for innovation activities. Drawing on the transaction cost and corporate entrepreneurship perspectives, we proposed that boundary decisions in innovation activities are determined by the perceived uncertainties of innovation projects and entrepreneurial orientation (EO). We also examined the consequences of collaborative innovation. In a sample of 178 Korean HTSFs in software development, we found that some aspects of perceived uncertainty prevented collaborative innovation, and that EO moderated this effect, enhancing the outcomes of collaborative innovation. We discuss theoretical and practical insights of these findings.     

Perceived control and shopping behavior: The moderating role of the level of utilitarian motivational orientation

Examining the influence of the retail environment on shopping behavior, Kaltcheva and Weitz (2006. When should a retailer create an exciting store environment? Journal of Marketing 70 (January), 107–118) showed that shopping motivation (utilitarian versus hedonic) moderates the relationship between arousal and shoppers’ behavior in the store environment. In particular, they found that high arousal decreases intentions to visit for consumers with a utilitarian motivational orientation. Focusing on this particular type of shopping motivation, we hypothesized that the negative effects of arousal-inducing store environments occur for consumers with higher utilitarian motivations because these environments prevent those specific consumers from controlling their shopping experience. We consequently adapted Kaltcheva and Weitz's (2006) framework by building a model articulating perceived control, stress, pleasure, and return intent. A multigroup analysis of consumers with high versus low utilitarian shopping motivations identified in a field study conducted in Europe gave support to our hypothesis.     

A qualitative and longitudinal analysis of market orientation

This work analyzes the dynamic effect of market orientation (MO) on organizational performance, both in the long term and in the short term. The performance was measured by the sales growth and profitability. The methodology used is innovative as it quantifies the MO with a qualitative technique: content analysis. Data from the Spanish banking sector between 2005 and 2007 are the basis of a longitudinal study. The results indicate that the banks that develop an MO approach maintain this approach over time. On the other hand, MO does not seem to have a direct effect on profitability, but does affect the long-term sales growth.     

Conceptualising market orientation in non-profit organisations: definition,performance, and preliminary construction of a scale

Abstract

This paper applies Narver and Slater's (1990 Narver, J. and Slater, S. 1990. The effect of a market orientation on business profitability. Journal of Marketing, 54(2): 20[Crossref], [Web of Science ®] , [Google Scholar]) conceptualisation of market orientation to non-profit organisations. The study constructs a reliable and valid scale of the market orientation in non-profits in order to test the relationship between non-profits' market orientation and their performance outcomes in the context of a developing country. We surveyed 211 Indian non-profits and received 102 usable responses. We used principal axis factoring with oblique rotation to analyse the data. The scale was tested for its dimensionality, reliability, and various validities. The findings show a positive link between non-profits' market orientation and their performance in the context of a developing country. Market-oriented non-profits were found to be more effective in achieving their organisational mission, beneficiary satisfaction, and peer reputation than those that were less market oriented.     

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.     

The dramatic breakdown of the market orientation concept in the pharmaceutical industry: lessons from Vioxx

In this article we present an in-depth case study to better understand the underlying market orientation concept in relation to bringing new technologies to the marketplace. We use the case history of the anti-arthritis drug Vioxx, developed and marketed by the company Merck & Co. Inc that allegedly killed thousands of customers. The case shows how market orientation can take shape and how the key components may form an explosive cocktail prone to problematic behaviour rather than a synergistic set of orientations that creates value for customers. From the data covering 20 years, it is clear that a consumer orientation and competitor orientation, for example, are difficult to internalise and balance by employees. A competitive orientation seems to lead to tunnel vision regarding profit and market share outcomes. Implications for the fundamental market orientation concept, innovation management, together with management challenges are discussed.     

Explications of political market orientation and political brand orientation using the resource-based view of the political party

Abstract

This paper adopts the resource-based view of the firm as a platform for an examination of three important political party capabilities: proactive political market orientation, responsive political market orientation, and political brand orientation. We develop a theoretical argument outlining the importance of the complementarity between these capabilities. The approach taken illustrates the links between political market orientation, using what we label as responsive political market orientation, proactive political market orientation, and political brand orientation by building on the marketing literature. We suggest that our treatment of political market orientation is important in helping to understand better its role within the resource-based view of the party. Further, it also aides in understanding political market orientation and branding in political marketing by parties within the context of competitive strategies and electoral performance.