Market Orientation: An Iterative Process of Customer and Market Engagement

ABSTRACT

Research Purpose. The objective of this research was to examine market orientation in organisations that deliver manufacturing-based services to both client organisations and their customers.

Research Approach. The case study research method employed three data collection methods: in-depth, semi-structured interviews, document analysis and physical artefact analysis. Embedded study units comprising groups of different stakeholders with distinctly different perspectives provided a basis for replication logic to enhance validity of the findings.

Findings. The research revealed that a firm's transition toward a market-oriented state is progressive. At a given point in time, a firm may be adjusting to its markets intuitively or cognitively; market responsiveness may be occurring in specific pockets of the firm, or as an enterprise-wide strategy; and some of the conditions specified may be met, some may be partly met and others may remain to be addressed in the future. A specific customer focus was important to the conceptualisation of market orientation in the case organisation.

Research Implications. Key implications of the research are as follows:

• In conceptualising market orientation as a process as opposed to an ideal state, important issues of structural and policy alignment and senior executive vision and drive are revealed;

• in addition to customer and competitor orientations and intra-organisational co-ordination, other dimensions of a market orientation revealed in the research context are a customer focus and a new knowledge orientation; and

• both inter- and intra-organisational co-ordination facilitate the development of market driven and market driving customer value.

Practical Implications. While the senior executives were aware of the significant performance benefits to be achieved through a national, market-oriented vision, the lack of a co-ordinated plan to achieve cultural change resulted in incremental achievements towards the vision. One key factor inhibiting the envisioned cultural change was the power base of those within the organisation who perceived that a national, market focus would eliminate local autonomy. Specific policy was required to align rewards with required behavioural change.

Contribution. This research provides a unique perspective of market orientation as process of organisational development directed towards aligning the organisation with its served markets. Intervention strategies and incremental changes attempted to achieve a national market perspective, highlight the importance of aligning structure, human resource management strategy, top management commitment and leadership drive in achieving such a cultural change.     

中国内地与香港债券市场整合问题研究

债券市场是现代金融体系的重要组成部分,债券市场整合是中国内地与香港开展金融合作的重要方面。文章认为中国内地与香港进行债券市场整合有助于巩固香港的国际金融中心地位,有助于推进人民币国际化和利率市场化进程,有助于促进中国内地债券市场的发展完善和加快亚洲金融一体化步伐。但目前中国内地与香港在进行债券市场整合时会遇到一系列障碍性因素:香港人民币存量有限;人民币尚未实现完全可自由兑换;内地与香港两地的利差带来的投机套利活动会对内地金融体系形成冲击等。在对中国内地与香港债券市场整合的近期、中期和远期模式进行设计展望的基础上,文章提出了推进内地与香港债券市场整合的一系列政策建议。     

Marketing Foreign Aid:

The article discusses how marketing new products in our domestic (U.S.) market has taught us some valuable lessons and given us insight into techniques and pitfalls related to what the authors call "the marketing" of foreign aid. A short history of inappropriate, failed models are discussed and what the authors believe to be a workable model is detailed.     

Measuring Market Orientation: Generalization and Synthesis

This paper reports on an integrative, cross-nationalstudy which synthesizes and retests work of three separate groupsof researchers who in the late 1980s developed measurementsof a firm's Market Orientation. The projects resulted in threedifferent but syntactically similar Market Orientation scaleswhich, along with other measures, were used to support substantiveconclusions, particularly those involving firm Performance. Basedon a new study of 82 managers in 27 European and U.S. companies,we show that all three scales are reliable and valid. The scalesalso seem to generalize well internationally, both in terms ofreliability and prediction of Performance. We also show thatthe scales are similar to one another in terms of various validitymeasures and in terms of correlations with Performance measures.Finally, we synthesize a 10-item scale based on a more parsimoniousdefinition of Market Orientation as: the set of cross-functionalprocesses and activities directed at creating and satisfyingcustomers through continuous needs-assessment.     

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.     

A Praxis Framework for Implementing Market Orientation Into Charities

There is a scarcity of research regarding the process of introducing market orientation into the not-for-profit sector. Understanding this process would greatly assist the not-for-profit sector, which is under increasing pressure to obtain funds to operate and offer appropriate services. In this article, we examine the successful introduction of market orientation into three Australian charities and identify the stages of implementation. The introduction of market orientation is analyzed from a discourse transformation perspective and a praxis framework is developed. This is amongst the first studies examining the transition to a market orientation discourse within charity organizations and the first study to develop a praxis framework to guide managers. The study also pioneers a discourse transformation perspective in market orientation research. The article thus extends our knowledge of market orientation within the not-for-profit sector and increases understanding of practitioner engagement in marketing activities.     

论ECFA背景下大陆企业在台湾证券市场的融资机制——借鉴香港证券市场的发展经验

在ECFA背景下,大陆与台湾之间的经贸合作必将进一步深化,此时研究台湾证券市场对大陆企业的制度开放问题具有重要的现实意义。本文认为,同属于"亚洲四小龙"的香港在经济发展历程、经济发展战略上与台湾都非常相似,而资本市场从一开始就是附属于实体经济的,是为了满足实体经济资金融通需求而发展起来的,因此,香港证券市场的成功发展策略对台湾证券市场具有很好的借鉴意义。本文研究了内地与香港CE-PA协议及其附加协议中对大陆企业融资开放的规制,认为大陆与台湾可以在ECFA附加协议的框架内达成台湾证券市场对大陆企业的融资开放,并进一步研究融资开放过程中相关法律法规的协调、有效监管体系的构建等制度构建问题。     

Stakeholders Management Systems: Empirical Insights from Relationship Marketing and Market Orientation Perspectives

This paper explores the managerial aspects of the relationship with stakeholders, under the assumption that transfer of knowledge is being made from relationship marketing and market orientation perspectives. These marketing tools may prove useful to manage the relationship with other stakeholders, as has been the case with customers. This study focuses on a sample of Spanish companies representing 43% of listed companies with the largest market capitalization. Given that this is the first time that corporate relationship with stakeholders is analyzed in Spain, a qualitative technique (case analysis) was used. The main conclusion of the study is that most of the participant companies have a reactive position vis-à-vis stakeholders management systems. This attitude is reflected in their concern exclusively about ethical indexes managers. J. García de Madariaga Assistant Professor, Marketing Department, Universidad Complutense de Madrid. Ph.D. in Marketing and B.A. in Advertising, Universidad Complutense de Madrid. His work has been published in refereed international journals and also in Spanish journals. He has also published numerous refereed articles in the proceedings of major national and international conferences. He is also an active marketing and marketing research consultant. Carmen Valor Ph.D. (Marketing) at Universidad Complutense de Madrid (Spain), MBA (Universidad Carlos III de Madrid, Spain). Currently, Visiting Teacher at Universidad Pontificia de Comillas-ICADE. She is also an active Research Member at Economistas Sin Fronteras Foundation and GEIES (Universidad San Pablo-CEU). Her work focuses on several issues related to corporate social responsibility and consumer behaviour. Her research has been published, inter alia, in the Journal of Business Ethics, Journal of Business and Society, Business and Society Review, or Investigación y Marketing.     

需求链管理：基于市场导向的SCM

传统供应链管理模式的缺陷在于过分关注效率,而忽视了匹配市场需求的有效性。在技术条件日益成熟的背景下,基于市场导向的供应链创新模式,需求链管理应运而生。需求链管理和传统的供应链管理在管理重心和管理模式等方面存在着明显区别。需求链的典型活动包括市场信息的获取、市场信息在所有需求链成员之间的分享,以及基于顾客价值的需求链整体对于市场信息的响应。     

Measuring Market Orientation: Exploring a Market Oriented Approach

This paper demonstrates that applications of existing approaches to measuring market orientation are myopic, non-comparative and over-reliant on the views of single respondents. Consequently, a multi-perspective, multi-informant approach for measuring market orientation is generated which focuses on gauging customers', competitors' and intra-organizational members' perceptions of the market orientation of an organization. To evaluate the psychometric properties of this approach an application of this design in a survey of manufacturing industry is subjected to tests for inter-rater reliability, scale reliability, content validity, criterion-related validity and construct validity. The conclusion of this evaluation is that the developed measure is both a reliable and valid means of gauging market orientation. The paper concludes with a series of implications for both theorists and practitioners.     

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.     

How to Make Higher Education Institutions Innovative: An Application of Market Orientation Practices

In the present era, higher education is considered a booming and significantly contributing sector to the economy of many countries. Due to the intense competition prevailing in the higher education sector, higher education institutions need to become market oriented and innovate in courses, delivery methods and student support services. Consequently, they could meet increasing expectations placed on them for quality of education and support services. The main aim of this study is to investigate the influence of both market orientation and its dimensions, on innovation in higher education institutions. This study also considered the age of the faculty a moderator to these influences. The sample comprised 270 managers and course cordinators attached to faculties, schools or units in Sri Lankan higher education institutions. The surveys were administered for data collection. The study has several contributions to the literature- all the three dimensions of market orientation, significantly and positively influenced innovation in higher education institutions. The age of the faculty significantly moderated the influence of both market orientation and its dimensions (Intelligence Generation and Responsiveness), on innovation. This study also expand the focus of theory of six sigma by applying it from market orientation and customer orientation perspectives. Finally, this study has modified items measuring several constructs to suit the higher education context which can be used by future researchers. From the findings, several practical implications are given to officials in higher education institutions for innovating in courses, delivery methods and support services. The article concludes with many useful directions for future researchers.     

Market Orientation: Scale Invariance and Relationship to Generic Strategies Across Two Countries

This article presents a scheme for investigating scale invariance for the market orientation construct across different countries by examining the psychometric properties of the operationalisation of market orientation (Narver and Slater, 1990). We investigate the measurement of market orientation in two countries (Australia and Zimbabwe—one being an example of a developed economy, the other of a developing economy). We then proceed to test the relationship between market orientation and Porter's (1980) generic strategies. The results suggest that the psychometric properties of the market orientation construct differ in important respects across countries. However, tests for convergent, predictive and discriminant validity using the generic strategies are fully supported for Zimbabwe while for Australia they are supported mutatis mutandis.     

Market Orientation and Business Performance in the PRC

Abstract

This study examined the applicability of Narver and Slater's market (1992) orientation model across different economies (planned versus market economy). First, we assessed the scale properties of market orientation from different cities in Mainland China (Hong Kong, Beijing, Shanghai and Guangzhou). Second, we then tested the relationship between market orientation and business performance. Tests for convergent, discriminant and predictive validity across the four Chinese economies with different market environments were supported by our findings. On the other hand, the impact of market orientation on business performance were found to be different across the four cities.     

影响企业市场导向业绩表现的共变量——不同成熟度企业之间的比较研究

本文研究共变量对市场导向与企业业绩等产出变量之间的关系,通过采用MKTOR量表测量市场导向,并将企业竞争能力作为市场导向的决定因子,同时将企业预期行为作为产出因子,对市场导向进行结构方程模型的定量研究。最后证明,在不同企业成熟度的企业中,例如跨国公司和小作坊式企业,市场导向的水平未必导致优良的企业业绩和良好的企业预期行为。     

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.     

Marketing Orientation in the Third Sector: The Art of Afro Reggae

Although there is a plethora of literature on marketing orientation in the private sector, within the nonprofit arena, this topic has been largely ignored. This paper analyzes the orientation and experience of Afro Reggae, a successful Brazilian nongovernmental organization that maintains a permanent presence in four drug-dominated slums in Rio de Janeiro. The present research uses the case study method for purposes of collecting and analyzing information. The paper discusses the implications for research in the area of marketing orientation in the third sector as well as the lessons learned regarding the low-income population vis-à-vis their experience with Afro Reggae.     

Market Orientation and Performance in the Public Sector

Abstract

Increased calls for transparency and accountability in government organizations underscores the need for a market orientation even in the public sector. The degree of market orientation and its effect on performance and on organizational commitment in government departments in three Australian states is considered. Results provide empirical support for a direct relationship between market orientation and performance and evidence of the mediating role of organizational commitment. Implications are drawn and directions for future research are discussed.     

Additional Thoughts on the Measurement of Market Orientation: A Comment on Deshpande and Farley

Deshpande and Farley examinethe reliability and validity of three well-known market-orientationscales from which they derive a single market-orientation scale.We believe that their synthesized scale effectively capturesa business's customer-value orientation which is the essenceof a market orientation, and that this scale development is adefinite contribution to marketing thought and practice. However,in two other respects we disaree with them. First, we believethere is more evidence of a positive market-orientation - performancerelationship than they acknowledge. Second, we hold that bothlogic and scholarly research strongly support the idea that amarket orientation is nothing less than an organization's culture.     

Why Organizations Struggle to Implement a Market Orientation: Insights Into Beliefs of Top Management

The role of management as an antecedent and barrier to market orientation is well documented. However, the often deeply held beliefs of top management that influence the degree to which their firms are market oriented has been largely overlooked. This study sought to understand these beliefs using a qualitative research method. Case study research employing in-depth semistructured interviews of four Australian vertically integrated horticultural enterprises was undertaken. A total of 28 beliefs of senior management team members were identified. These beliefs, which appeared to have become part of organizational culture, influenced the way market intelligence was gathered and shared and the degree to which the organizations planned, coordinated, and timed their responses to market opportunities and threats. The results suggest that changing management beliefs about marketing and market orientation may be an important component of enhancing the degree to which firms are market oriented.