Hustle for survival or bustle for revival: Effects of Guanxi orientation and order of entry for China's electronic business ventures

Electronic business ventures (EBVs), startups on Internet platforms, have recently attracted research attention. This study attempts to understand the encompassing mechanism for the superior market performance of EBVs entering China's electronic market with a focus on the effects of two important drivers. The first is Guanxi orientation, which is a strategic factor rooted in Chinese culture. The second is the order of entry or the chosen time of entering a market to gain advantages. We test six hypotheses based on data collected from 155 EBVs established over the past 10 years in China. The results show that EBVs' Guanxi orientation positively influences their market performance and that this effect is mediated by political ties built through Guanxi activities. Although the order of entry effect is not evident for EBVs, Guanxi orientation contributes to market performance to a higher degree for late entrant EBVs than for early follower EBVs. The study's findings offer new insights into the implementation of Guanxi orientation in the fast-growing electronic market in China, an emerging country with a culture distinct from that of the West.     

Five dimensions of organizational citizenship behavior: Comparing antecedents and levels of engagement in China and the US

The purpose of this article is to investigate differences between the US and China in (1) employees’ level of engagement in the five dimensions of organizational citizenship behavior (OCB) identified by Organ (1988), and (2) the effects of perceived distributive justice and perceived supervisor support on OCB. Results suggest that Chinese respondents have a higher level of sportsmanship and courtesy, but a lower level of civic virtue than the US respondents. In addition, perceived supervisor support is significantly related to all five OCB dimensions for the Chinese sample, whereas for the US sample, perceived distributive justice is significantly related to conscientiousness and sportsmanship and marginally related to altruism. A follow-up study was conducted in the US to examine the direct effects of such cultural factors as individualistic/collectivistic orientation and power distance orientation on each of the five OCB dimensions, and their moderating effects on the relationships of the five OCB dimensions with perceived supervisor support and perceived distributive justice. Results suggest an effect of individualistic/collectivistic orientation on the five OCB dimensions. No relationship was found between power distance orientation and OCB. Moreover, the results did not support our predictions regarding the moderating effects of individualistic/collectivistic orientation and power distance orientation on the relationships between OCB dimensions and perceived supervisor support or perceived distributive justice.     

The effects of market orientation on relationship learning and relationship performance in industrial marketing: The dyadic perspectives

From dyadic perspectives, this study explores the effect of market orientation on relationship learning and relationship performance and the moderating effect of relationship quality in Taiwan manufacturing industry. The results reveal that: (1) both customer market orientation and supplier market orientation are positively related to relationship learning; (2) relationship learning is positively related to relationship performance; (3) both customer and supplier market orientation has positively interaction effect on shared information and negatively interaction effect on sense-making activities; and (4) trust of relationship quality has moderating effect on the relationship between customer market orientation and relationship learning.     

The asymmetric moderating role of market orientation on the ambidexterity-firm performance relationship for prospectors and defenders

Drawing on the resource-based view of the firm and, in particular, the capabilities perspective of firm performance, the authors examine the relationship between ambidexterity and firm performance for two strategy typologies: prospectors and defenders. Ambidexterity, defined as the combination of two discrete capabilities (exploration and exploitation), should have a less negative effect on firm performance among prospectors that add exploitation to exploration than among defenders who add exploration to exploitation. Hence, this research predicts an asymmetric effect of ambidexterity on firm performance for prospectors and defenders. The authors further posit that a boundary-spanning culture, such as market orientation, can function as a metaculture by integrating the subunit cultures generated by exploration and exploitation. As a result, market orientation should mitigate the negative effect of ambidexterity on firm performance, albeit differently for prospectors and defenders, and thus point to an asymmetric moderating role of market orientation. The findings provide mixed results, which the authors discuss along with some theoretical and managerial implications.     

How does customer orientation (in)congruence affect B2B electronic commerce platform firms' performance?

Business-to-business (B2B) electronic platforms have become important channels for transforming traditional modes of transaction. The success of these platforms relies heavily on the platform firms' customer orientation (CO) practices, which are designed to attract both sellers and buyers. This study draws on the cross network effect theory to explore whether and how a B2B e-commerce platform firm's (in)congruent CO strategic initiatives toward sellers or buyers affect the firm's performance. In addition, the moderating effects of seller-side and buyer-side demand uncertainty on the relationship between CO (in)congruence and platform firm performance are investigated. The analysis of data collected from 185 B2B electronic platform firms in China reveals that CO incongruence is more beneficial to firm performance than CO congruence. Furthermore, when seller-side demand uncertainty is high, an increase in seller-focused CO incongruence (i.e., higher seller orientation than buyer orientation) or buyer-focused CO incongruence (i.e., lower seller orientation than buyer orientation) improves or impedes a B2B e-commerce platform firm's performance, respectively. However, when buyer-side demand uncertainty is high, an increase in either type of CO incongruence does not improve firm performance. These findings contribute to the literature on and practices of B2B e-commerce and customer orientation.     

Whose Innovation Performance Benefits More from External Networks: Entrepreneurial or Conservative Firms?

The primary contribution of this research is positing and empirically supporting the proposition that learning through external networks disproportionately benefits conservative, risk‐averse firms. The construct, entrepreneurial orientation (EO), is used to discriminate conservative, risk‐averse firms from proactive, risk‐seeking firms. Organizational learning theory and social capital theory are employed to support our hypotheses. Based on a study of 1978 U.S. firms, the paper suggests that the utilization of external networks (i.e., the process of learning from information, perspectives, and insights embedded in external networks) may act as a primary driver for innovation for those firms that are either not inclined and/or do not have the capabilities to adopt entrepreneurial culture. Specifically, weak EO firms' innovation performance benefits from utilizing external networks more than strong EO firms'. This research also tests for the moderating role of firm size and finds that the negative moderating effect of EO on the external network utilization–innovation performance relationship is more pronounced in small and medium sized enterprises (SMEs) than large firms.     

R&D investment,business performance,and moderating role of Guanxi: Evidence from China

Conventional wisdom posits that a long-term orientation with important partners such as key suppliers and clients is essential for superior performance. This study critically examines this business tenet by studying the relationship between duration of partnerships with major suppliers and clients and company performance. Based on a dataset comprising over 10,000 Chinese manufacturing firms obtained through a probability sampling procedure, results show that relationship duration with major clients not only has a direct, negative effect on total income (sales), but also has a negative moderating effect on the association between research & development (R&D) and total income. However, relationship duration with major suppliers has a positive moderating effect on the association between R&D and total profits. Furthermore, relationship with government has a positive effect on total income, and it also has a negative moderating effect on the R&D-performance chain. Managerial and research implications are also discussed.     

Relationship stability, trust and relational risk in marketing channels: Evidence from China

This paper provides an integrated framework for examining effects of relationship stability and trust on relational risk and for exploring the moderating effects of guanxi on the relationships between trust and relational risk in marketing channels. The framework is tested with 225 dyads of questionnaires about buyer-supplier relationships in the Chinese household appliances sector. The results indicate that relationship length and dyadic solidarity can reduce the relational risk perceived by buyers through goodwill trust in their suppliers, but can increase the perceived relational risk through trust in their competence. Guanxi helps to weaken the positive relationship between a buyer's trust in suppliers' competence and its perceived relational risk, and dyadic solidarity can directly lower relational risk. This paper makes clear that buyers locked in a stable relationship will face relational risk, and it further identifies the specific variables which impact on the relational risk and the paths from which relational risk comes.     

Many roads lead to Rome: How entrepreneurial orientation and trust boost the positive network range and entrepreneurial performance relationship

Due to liabilities of smallness and newness for entrepreneurial firms, decisions surrounding the sufficient leveraging of diverse information, knowledge, and resources used to pursue market opportunities are critical. Prior research has emphasized that network range is essential to improve entrepreneurial performance. However, research on boundary conditions of this relationship is still scant. Based on the social capital theory, this study advances research on the aforementioned relationship by integrating different dimensions of social capital and focusing on the three-way interaction of entrepreneurial orientation (EO) and trust. Based on data from a time-lagged two-wave survey of 389 firms in an emerging economy, we confirm the positive network range-performance relationship and find that EO strengthens the relationship between network range and entrepreneurial performance. Furthermore, findings suggest that network range can generate superior performance when aligned with the high levels of EO and cognitive trust, thus confirming the proposed three-way interaction. Overall, these findings contribute to a better understanding of how to facilitate network connections to enhance entrepreneurial performance.     

Unlocking the link between relationship duration and product De-listing in retail channels: The role of market orientation and brand diffusion

The literature on retailers' range rationalization is limited and focuses primarily on the consequences thereof from a consumer perspective. Drawing on the extant research on buyer-supplier relationships, brand management, and market orientation (MO) in business-to-business (B2B) markets, our research explores the antecedents of product de-listing in retail channels. It unlocks the link between relationship duration and product de-listing by examining the role of MO and brand diffusion. Using a combination of primary data with both objective and perceptual measures and proprietary objective data from a sample of suppliers to a large British supermarket, we find that the supplier's brand diffusion is an essential means of utilizing relationship duration between suppliers and retailers to reduce product de-listing in retail stores. Additionally, we find that MO plays opposite moderating roles in the links between relationship duration, brand diffusion, and product de-listing. It strengthens the negative influence of relationship duration on product de-listing, while it weakens the positive influence of relationship duration on brand diffusion. Our study contributes to research on marketing channels and B2B marketing by highlighting the limitations of relational view theory and unveiling the role of brand diffusion and MO in explaining the outcomes of buyer-supplier relationships in retail channels.     

Entrepreneurial orientation and SME performance in China’s changing environment: The moderating effects of strategies

Recent research has found an inverted U-shape relationship between entrepreneurial orientation (EO) and firm performance in the Chinese context. Building on Miles and Snow??s (1978) strategy framework and Scott??s (1995) country institutional profile, we propose that prospector and analyzer strategies align better with entrepreneurial orientation to allow firms to fully benefit from their risk-taking, proactiveness, and innovativeness. Data collected from 155 SMEs in China confirmed that prospector and analyzer strategies alleviated the curve significantly. The defender strategy enhanced the curvilinearity, yet this moderating effect was insignificant. Implications for policy-makers, international businesses, and entrepreneurial firms in China are discussed.     

Supplier market orientation and accommodation of the customer in different relationship phases

As customers' needs have changed rapidly, market orientation has become a more primary focus of marketing literature. This study explores the strategies market-oriented suppliers use to accommodate customer needs. In addition, because buyer-seller relationships proceed through phases characterized by distinct behaviors, this study explores the relationship between market orientation and accommodation strategies over the course of the buyer-seller relationship lifecycle. The results show that market-oriented firms use flexibility and relationship-specific adaptation as accommodation strategies. Also, three market orientation components (customer orientation, competitor orientation, and interfunctional coordination) relate differently to flexibility and relationship-specific adaptation during the relationship lifecycle. Finally, accommodation strategies significantly mediate the effects of the three market orientation components on customer satisfaction. Thus, market-oriented firms can satisfy their customers and avoid an overreliance on current relationships by emphasizing either flexibility or relationship-specific adaptations that correspond to the lifecycle of the relationship.     

The impact of SME internationalization on innovation: The mediating role of market and entrepreneurial orientation

In today's highly competitive global environment, even small and medium-sized enterprises (SMEs) need to make product and process innovations in order to outperform the competition and satisfy global customers. Investigating the success factors of innovation performance has become critical for the survival and competitiveness of SMEs. The aim of this study is to explore the impact of the degree of internationalization (DoI) on innovation performance through the mediating factors of market and entrepreneurial orientation in the context of emerging-market SMEs. We tested our model and hypotheses with 235 SMEs in the United Arab Emirates, which is an emerging market. The results obtained from partial least squares estimates indicate that the degree of internationalization positively affects innovation performance and, more importantly, that this relationship is indirect and fully mediated by market and entrepreneurial orientation for SMEs. These results shed light on the mechanism of the effect of DoI on innovation performance in the emerging-market SME context.     

Paths to Success: How Do Market Orientation and Entrepreneurship Orientation Produce New Product Success?

The purpose of this paper is to examine the relationship between strategic orientation and the performance of new products. In this paper, we develop a conceptual model that explores the roles of market orientation (MO) and entrepreneurship orientation (EO) on new product performance and seek to understand the mediating roles of process and product characteristics. Based on a survey of 471 small and medium‐sized enterprises in Korea, we found that MO and EO positively affect new product performance. The main impact of MO is through new product development proficiency and product meaningfulness and that of EO is through proficient intellectual property management and product novelty. Academic and managerial implications are also discussed.     

Performance implications of the buyer-supplier market orientation fit

Extant research examining the link between market orientation and performance offers few insights into how the interplay between a firm's market orientation (MO) and its key supplier's MO influences the firm's performance. Using archival and survey dyadic data from 876 firms (438 firm-supplier dyads), we explore the impact of MO fit (i.e., fit between the focal firm's MO and its supplier's MO) on the focal firm's performance (ROA). The findings indicate a direct and positive relationship between MO fit and ROA. This highlights the need for firms to focus both on their own MO and their key supplier's MO as sources of competitive advantage in today's business environment. The strength of the relationship between MO fit and ROA increases when the exchanged business volume increases between the focal firm and its supplier and when the respective relationship progresses in age. Furthermore, firms with MO fit perform best, followed by firms with higher supplier MO misfit (firm's MO is lower than its key supplier's MO), while firms with lower supplier MO misfit (firm's MO is higher than its key supplier's MO) are the laggards.     

Knowledge‐based resources,entrepreneurial orientation,and the performance of small and medium‐sized businesses

While theory suggests that management has discretion in manipulating resources in order to build competitive advantage, resource‐based research has focused on the characteristics of resources, paying less attention to the relationship between those resources and the way firms are organized. In explaining performance, entrepreneurship scholars have focused on a firm's entrepreneurial strategic orientation (EO), leaving its interrelationship with internal characteristics aside. We argue that EO captures an important aspect of the way a firm is organized. Our findings suggest that knowledge‐based resources (applicable to discovery and exploitation of opportunities) are positively related to firm performance and that EO enhances this relationship. Copyright © 2003 John Wiley & Sons, Ltd.     

Market orientation,marketing capabilities,and firm performance

Drawing on traditional resource‐based theory and its recent dynamic capabilities theory extensions, we examine both the possession of a market orientation and the marketing capabilities through which resources are deployed into the marketplace as drivers of firm performance in a cross‐industry sample. Our findings indicate that market orientation and marketing capabilities are complementary assets that contribute to superior firm performance. We also find that market orientation has a direct effect on firms' return on assets (ROA), and that marketing capabilities directly impact both ROA and perceived firm performance. Copyright © 2009 John Wiley & Sons, Ltd.     

Interaction Orientation and Product Development Performance for Taiwanese Electronics Firms: The Mediating Role of Market‐Relating Capabilities

While academics and practitioners are increasingly aware of the value of including the customer in new product development (NPD), processes for doing so effectively remain unclear. Therefore, this study explores the process through which a firm's interaction orientation (the ability to effectively interact with customers) influences product development performance. Drawing on the resource‐based view, this study develops a research model in which two market‐relating capabilities—market‐linking and marketing capabilities—mediate the effect of interaction orientation on product development performance. The validity of this model is examined by analyzing primary data gathered from 167 Taiwanese electronics companies. The model results provide support for a process link between interaction orientation, market‐relating capabilities, and product development performance, such that a firm's capabilities enable the conversion of customer‐based resources into productive new product outcomes. More specifically, the interaction orientation–product development speed relationship is mediated by both marketing and market‐linking capabilities, while the interaction orientation–product innovativeness relationship is partially mediated by marketing capability. That is, interaction orientation has indirect effects on product innovativeness and product development speed by strengthening both marketing and market‐linking capabilities that in turn improve product development performance. In addition, the results suggest that a firm's interactive rationality moderates the relationship between interaction orientation and marketing capability. Overall, this study enhances our understanding of how firms achieve superior product development performance by developing effective customer interaction. The findings of this study provide important strategic insights into NPD.     

Interfirm Relationships in the Supply Chain: The Small Supplier’s View

The need for global market presence, the complexity of new product development, and the emphasis on core competence are making alliances among firms more important, and recent evidence suggests that these issues are affecting small suppliers as well as the large firms that are their customers. This paper studied the relationship orientation (i.e., the perceived importance, of interfirm relations) in a fragmented supplier industry whose single largest customer group is automotive OEMs. The primary objective of the research was the identification of factors that discriminate between firms with high and low relationship orientations. The study found four factors describing benefits and barriers associated with interfirm relationships, and found that firms with a high relationship orientation were smaller and more optimistic about the industry’s ability to support a greater number of firms in the future, and perceived faster technology change than firms with a low relationship orientation.     

The reinforcing effect of a firm's customer orientation and supply-base orientation on performance

Although the merits of maintaining strategic orientations such as customer orientation and supply-base orientation have been discussed in the literature, there is relatively little understanding of how these strategic orientations interrelate. Drawing on dynamic capability theory, this study examines how these strategic orientations, through the deployment of their underlying capabilities, are drivers of firm performance. Based on a cross-industry sample, the findings indicate that firm's customer orientation and supply-base orientation are complementary strategic assets that contribute to superior performance. The findings provide new insights regarding the interplay of different strategic orientations and the importance of capability deployment.