Competitive strategy in the market-focused business

Market orientation is a business culture which enlists the participation of all employees for the purpose of creating superior value for its customers and superior performance for itself. A substantial body of research finds a positive relationship between a business's magnitude of market orientation and its performance. However, there has been no research into the competitive strategies through which a market-oriented business creates customer value. This paper extends previous work by showing that market-oriented businesses aggressively develop new products and services, focus on opportunities in market segments rather than in the mass market, and attempt to achieve competitive advantage both by increasing customer benefits and by reducing costs.     

Market-Oriented Management: A Systems-Based Perspective

Market orientation has received substantial academic and practitioner interest over the last decade. However, previous research has not addressed the issue how a company's management systems can be designed in a market-oriented way. Starting from a systems-based perspective of management, the authors develop and validate a scale measuring the extent of market orientation of a business organization's management systems including the organization system, the information system, the planning system, the controlling system, and the human resource management system. Empirical results reveal a substantial positive impact of market-oriented management on market performance which in turn leads to financial 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.     

Market orientation,product innovation and export performance: evidence from Chinese manufacturers

Based on resource-based view (RBV), this study examines the impact of marketing-related resource (market orientation) and innovation-related resources (innovation orientation and innovation resources) on exporters' performance (new product performance and overall export performance), as well as moderating role of environmental turbulence in the market orientation and export performance link. The questionnaire survey conducted among 220 manufacturing exporters reveals that there exist positive relationships among the constructs in question. This research departs from the majority of past research investigating the relationship among market orientation, product innovation and business performance in three aspects: (1) it examines the impact mechanism how market orientation improves new product performance and export performance through innovation orientation and innovation resources based on RBV, (2) it distinguishes among three constructs involved in product innovation activity, and (3) it extends the research from domestic markets to export markets. We conclude by discussing our contributions, the implications, and possible future extensions.     

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.     

Current Marketing Practices and Market Orientation in the Context of an Emerging Economy: The Case of Uruguay

This research explores the link between contemporary marketing practices, market orientation (MO), and business performance in Uruguay, an emergent country that has recovered from an economic crisis. These approaches seem to be related but there is no existing evidence to confirm this impression. Lessons can be learned from understanding how effective the adoption of marketing practices is under a crisis scenario. Using data from interviews with 143 micro and small firms' managers, we identify three clusters dependant on the combination of marketing practices: a multimarketing cluster, a medium‐level relationship marketing cluster, and a transactional cluster. A model relating MO components and various performance measures is tested for the three clusters, showing that the multimarketing and transactional clusters are more effective in translating efforts and resources into business outcomes.     

The Effect of a Market Orientation on Business Performance: A Study of Small-Sized Service Retailers Using MARKOR Scale

Conventional marketing wisdom holds that a market orientation provides a company with a better understanding of its customers, competitors, and environment, which subsequently leads to superior firm performance. While researchers have explored the relationship between market orientation and business performance in different organizations, such studies in small-sized service retailers are scarce. This study investigates potential influences of market orientation on small-sized service retailer performance. Data for this study were collected through personal interviews, and Kohli, Jaworski, and Kumar's market orientation scale was used to specify the dimensions of a market-oriented organization. Results indicated that Kohli, Jaworski, and Kumar's market orientation scale provided a good measure of market orientation in this setting. Also, the results of analyses indicated a significant link between market orientation and small-sized service retailer performance. The managerial implications are discussed.     

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.     

Market Orientation in the Chilean Small Business Context

Abstract

Market orientation has been considered a key factor in successful business operations across different markets. To test this assertion, the authors examine the influence of a firm's market orientation on small business performance in the Chilean retail environment. They go on to report empirical information about the characteristics of the market-oriented retailers in Chile. The Kohli, Jaworski, and Kumar (1993) MARKOR scale is used in the study to assess the market orientation in the context of a developing country environment. Data for the study were collected from small retailers in Chile through self-administered questionnaires using a drop-off/pick-up method. The results show a significant correlation between market orientation and small business performance. Path analyses found that the best structure among the Market Orientation dimensions is: Intelligence Generation→ Intelligence Dissemination → Responsiveness. Moreover, these performance measures differed significantly among the three different partitions obtained using a k-means cluster analysis. The findings indicate that the MARKOR scale is both valid and reliable in a diverse Chilean small business environment.     

How similar is the world in the internet era? A comparison of e‐business in China,Russia, and Sweden

Much has been written about how e‐business can serve as a strong homogenizing influence and essentially make the world into one market. Yet, little research has empirically investigated this question. This study seeks to describe e‐business activity in China, Sweden, and Russia to identify similarities and differences in the portfolios of e‐business applications in these countries. Our results indicate that different e‐business applications are emerging as more prevalent in different countries. © 2006 Wiley Periodicals, Inc.     

Exploring How Managers Conceive and Practice Market Orientation in Near “Perfect” Food Markets

Abstract

This paper explores what it means to be market-oriented in food commodity markets, i.e., markets that are near “perfect” as characterized in economics. This is an almost neglected topic in past research on market orientation. By eliciting how top managers in food commodity firms conceptualize market orientation, we reveal that their understanding and practice of market orientation partly deviates from the prototypical views reflected in the market orientation literature. Findings are discussed and implications highlighted.     

THE ROLE OF LOGISTICS IN MARKET ORIENTATION

In today's increasingly competitive environment, survival depends on two key aspects of being market‐oriented ‐ understanding the external environment and executing decisions based on that understanding. Logistics personnel are uniquely positioned to play a key role in creating and maintaining a market‐oriented organization as they are progressively gaining more responsibilities in integrating cross‐functional processes and implementing supply chain strategies. This paper explores how logisticians participate in market orientation behaviors and how a market‐oriented logistics function impacts logistics and business performance. Based on a qualitative field research study involving in‐depth interviews with seventeen logistics personnel that draws and builds upon the logistics, market orientation, knowledge management, organizational behavior, information processing, and strategic management literatures, a theoretical model of logistics market orientation and its effect on logistics and business performance is developed and propositions are presented. Findings highlight logistics' central role in generating, disseminating, reaching a shared interpretation of, and responding to market intelligence.     

Speed or quality? How the order of market entry influences the relationship between market orientation and new product performance

The role of market orientation as an antecedent of new product performance has been extensively documented in the literature. What is less clear, however, is how firms should make use of their market orientation under different market conditions. This study addresses this question by investigating how market orientation leads to superior new product performance for products that enter the market at different times. In particular, the study examines the moderating effect of order of market entry on the mediated relationship between market orientation and new product performance via product quality and innovation speed. Data from a sample of 244 new product development projects show that a firm's market orientation can improve the performance of first-to-market products and late entrants by facilitating the development of quality products, whereas it can improve the performance of early entrants by facilitating greater innovation speed.     

Market Orientation,Corporate Social Responsibility,and Business Performance

This study examines the moderating effects of corporate social responsibility (CSR) on the association between market orientation and firm performance in the context of an emerging economy. The results from a sample of firms that operate in Dubai indicate that CSR has a synergistic effect on the impact of market orientation on business performance. The results of our research on the moderating effects of CSR on market orientation subsets reveal that although CSR moderates the association between customer orientation and business performance, it does not moderate the association between competitive orientation and inter-functional coordination and performance. The results of this study are discussed, and implications for practitioners and researchers are presented.     

Does market orientation pay off without brand orientation? A study of small business entrepreneurs

Market orientation and brand orientation are usually modelled as distinct antecedents of business performance, and the simultaneous performance effects of these orientations are empirically under-explored. Moreover, studies of market orientation and branding tend to focus on large corporations and the views of managers rather than the views of small business entrepreneurs. Addressing these research gaps, the current study explores market orientation and brand orientation by empirically testing their simultaneous effects on the business performance of small firms. Using primary data from 328 effective responses gathered from small business entrepreneurs, the study finds that market orientation improves the financial performance of a small firm only if it is implemented through brand orientation and eventually translated into brand performance. The results further indicate that older firms benefit more than younger firms from investing in branding, while younger firms benefit from paying attention to the actions of their rivals.     

Book reviews

Many commentators suggest that market and competitive dynamics threaten the very survival of small shops in the UK. In light of this, the research presented here reports the findings of a major study that investigates the relationship between market orientation and performance in small UK retailers through an empirical analysis of survey data. Findings indicate that market orientation and performance are positively related and, moreover that, the customer strategy focus of small retailers is the key determinant of success compared with other components of market orientation and environmental influences. The implications for practitioners and policy makers are considered, particularly the importance of market-oriented culture in formulating and implementing customer-led strategies which distinguish successful small retailers from those that struggle to survive.     

Thriving on Turbulence

Although there is widespread evidence of links between market orientation and company performance, there is debate over whether the market environment moderates the market orientation-performance relationship. Until now empirical evidence has been limited to the USA, UK and Ghana. This study is based on a large multi-industry sample of firms from New Zealand, a more turbulent country-economy. The results show that although environment can have a direct (and often negative) effect on performance, it can also have a positive moderating effect on the relationship between market orientation and performance. This suggests that more market-oriented firms may actually thrive in more turbulent environments.     

Inter-firm Market Orientation: Its Significance and Antecedents in Distribution Networks

It is often argued that competition takes place between networks or value chains, rather than between individual companies. This means that market orientation needs to be recognised at this level, in order to understand how an inter-firm network can become more competitive and effective in serving its final market. Still, market orientation has been analysed only as a property of individual companies. This paper stresses the importance of recognising market orientation on a network level and as an inter-firm phenomenon. The notion of inter-firm market orientation, i.e.joint activities by firms that make a network more sensitive to market demands, is thus suggested. A framework is presented that discusses the meaning and content of inter-firm market orientation in a distribution network, and how it is influenced by different network and relationship characteristics. The framework is based on previous research on market orientation, inter-firm networks and relationships.     

Global marketing strategy modeling of high tech products

This study considers the role of global marketing strategy and its relation to market orientation, international experience, and performance in the high tech products context. Knowledge of this important domain of global marketing strategy and performance remains limited. In this respect, the study raises a number of important questions concerning how market orientation, international experience and global marketing strategy impact performance. The study empirically tests predictions of relationships by using mail survey data from 172 business units of high tech firms. Findings from the research sample support the argument that market orientation, international experience, and global marketing strategy are the key antecedents of organizational performance. Market orientation and international experience influence global marketing. The article concludes with theoretical and managerial implications of the research findings.