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 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 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.     

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.     

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.     

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.     

Exploring the Role of Product Development Capability for Transforming Marketing Intelligence into Firm Performance

ABSTRACT

Purpose: This study examines the role of product development capability for transforming marketing intelligence activities into firm performance on industrial markets.

Methodology/Approach: The authors apply structural equation modeling to analyze survey data from 342 industrial manufacturing companies.

Findings: Results reveal that sales integration and holistic macroeconomic view are particularly important features of the marketing intelligence capability on industrial markets to gain additional insights in order to develop products successfully. Results also reveal that product development capability transforms the marketing intelligence activities into firm performance on industrial markets.

Research Implications: This study offers new insights on marketing theory by extending and concretizing the concept of market orientation to a broader concept of the marketing intelligence capability for industrial markets. Further, this research reveals that the product development capability serves as a mediator to business performance.

Practical Implications: This study’s systematic and tangible outline of the dimensions of marketing intelligence and its link to the product development capability helps firms to better understand how to capitalize on market orientation’s potential values.

Originality/Value/Contribution: This research (a) reveals the relevant dimensions of marketing intelligence on industrial markets and (b) shows how the product development capability tranforms marketing intelligence activities into firm performance on industrial markets.     

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.     

Strategic orientation in handicraft subsistence businesses in Oaxaca,Mexico

Abstract

This article, based in the body of strategic orientation literature, identifies and explores the practices of innovativeness, proactiveness and competitive aggressiveness that make up the strategic orientation implemented by subsistence entrepreneurs to improve business performance. A factor analysis was carried out using the data of 101 entrepreneurs, small artisanal business owners who operate in the subsistence markets in Oaxaca, Mexico. The results show that subsistence entrepreneurs notably engage in innovative and proactive practices, and, to a lesser extent, competitive aggressiveness. The research concludes that a combination of innovativeness with proactiveness is the most viable option for improving performance, whereas competitive aggressiveness impedes its development. Even so, however, it is still implemented by subsistence businesses in order to conserve their market share.     

The effects of entrepreneurial orientation, market orientation, and marketing subunit influence on firm performance

The study investigates how an organization’s entrepreneurial orientation moderates the interplay between market orientation and marketing subunit influence on firm performance. The hypothesized model predicts that the positive interaction between market orientation and marketing subunit influence has a weaker effect on firm performance under conditions of high entrepreneurial orientation. The regression and supplementary analyses provide support for most predictions and, most importantly, for a negative three-way interaction effect: At higher levels of entrepreneurial orientation, the positive moderating effect of marketing subunit influence on the market orientation–business performance relationship is reduced. The authors discuss the managerial and theoretical implications of their findings and provide a number of directions for further research.

Business strategy,organizational culture,and market orientation

This study investigates the impact of the structural adjustment program (SAP) on business practices in an emerging African country. The research instrument was based on constructs of business strategy, organizational culture, and market orientation. Compilation of the research data was achieved through in-depth interviews and a self-administered mail survey. The findings provide evidence of a positive influence of SAP-induced strategies and certain culture types on the level of firm market orientation. The article concludes with a discussion on management implications as well as directions for future research. © 1998 John Wiley & Sons, Inc.     

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 Market Orientation of Internet Support Companies

ABSTRACT

Several studies have expanded the work by Jaworski and Kohli (1993) by using their market orientation framework model and applying it to a variety of industries. The results of recent studies have uncovered moderate to strong relationships between the concepts of market orientation and organizational performance. Although there is a large body of research on the topic of market orientation, there is a gap pertaining to market orientation across organizations that comprise fast-paced environments such as those that exist within the Internet commerce environment. This study explores market orientation in the context of Web Hosting and Internet service providers to understand the impact market orientation can have on new and emerging industries. The study results indicate that market orientation is positively related to performance. Implications for theory construction and managerial practice are discussed.     

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.     

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.     

Channel Collaboration,Market Orientation and Performance Advantages: Discovering Developed and Emerging Markets

Abstract

Channel collaboration has occupied an increasingly prominent role in contemporary business strategy, and has been considered a key driver for providing value for the partnering firms involved. Drawing on the resource based theory of the firm, the present study aims to explore the effects of collaborative capability and market orientation on firms' performance advantages in the context of marketing channels. We also investigate whether the firms in developed and emerging markets significantly differ in their capability profiles. The data consists of 545 responses to a survey of small, medium-sized and large companies representing the grocery goods sector (manufacturers, wholesalers and retailers) in nine countries. In line with the theory, channel collaboration enhances positional and performance advantages of firms, and this collaboration is shaped by the type of economy adopted.     

Barriers to Increased Market-Oriented Activity: What the Literature Suggests

Most research on market orientation has dealt with assessing how market orientation behaviour is related to business performance. This work has established an intense market-oriented activity as significantly and positively related to business performance under most circumstances. In a maturing field of research and practice the question on how to design programs for building market orientation is about to be answered. This branch looks deeper into the nature of market orientation and into designing and managing the increase of market orientation. However, the question on why marketing and related activities still seem to attract relatively few resources is not answered by supplying another checklist or package of facilitators. Based on published conceptual writings and empirical studies this article makes an account of what the intra-organizational barriers may be to increased market-oriented activity. A framework of six generic domains is suggested: Organizational structure, human resource management, market-oriented activity competence, psychological climate, managers' personality characteristics, and individually held beliefs. A model is suggested interrelating the domains.     

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.     

When Marketing Dare Not Speak Its Name: Understanding Market Orientation in Chinese NGOs

ABSTRACT

The market orientation construct has proven to be of value to profit-seeking firms. It ought to be of value to NGOs too. Some previous research has been done to facilitate understanding of market orientation in NGOs, but the methodologies used have mostly been quantitative, and nothing is known about the market orientation of Chinese NGOs. To address this research gap, a qualitative case study methodology was used to develop a deeper understanding of how market orientation is practiced among NGOs in Hong Kong (China). Mapping with previous studies, the research found that three factors together explained the varying degrees of market orientation in the NGOs studied: senior management factors, organizational and institutional factors, and structural and system factors. But more importantly, an NGO’s funding base was found to moderate the relationship between these antecedents and an organization’s market orientation. The more that the NGO relies on public funding or a small number of funders the weaker the influence of the antecedents on market orientation. The more that the NGO relies on private funders, a diversified group of funders, or self-funding, the stronger the influence of the antecedents on market orientation, and the closer its understanding of market orientation is likely to be to that of a commercial entity. The article finishes with a substantive theoretical model for market orientation in the Chinese NGO context.     

The Impact of Integration and Responsiveness on MNC Subsidiaries’ Market Orientation

ABSTRACT

In this study, the author explored the impact of integration and local responsiveness on the market orientation of multinational corporations’ foreign subsidiaries. An investigation of a sample of 250 foreign subsidiaries in the United Kingdom revealed different effects of integration and local responsiveness on market orientation. In specific, integration directly impacts the development of market orientation of multinational corporations’ subsidiaries, whereas responsiveness effects on market orientation are mainly indirect through first affecting the top management emphasis and then the use of market-based reward systems at subsidiaries. Managerial and research implications are discussed.