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.     

A Conceptual Model of Political Market Orientation

SUMMARY

This article proposes eight constructs of a conceptual model of political market orientation, taking inspiration from the business and political marketing literature. Four of the constructs are ‘behavioural’ in that they aim to describe the process of how information flows through the organisation. The remaining four constructs are attitudinal, designed to capture the awareness of members to the activities and importance of stakeholder groups in society, both internal and external to the organisation. The model not only allows the level of a party's political market orientation to be assessed, but also aids the party in making a context-specific decision with regard to the reallocation–or not–of party resources in order to attain the party's long-term objectives.     

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.     

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.     

关系营销导向:量表的重新设计与检验

基于关系营销理论和前人关于关系营销导向的论述与测量,针对关系营销导向测量中存在的问题,本文设计了一个新的关系营销导向量表,并以营销渠道中制造商与其经销商的关系为背景,检验和评估了新量表的信度与效度。结果发现:新量表在内部一致性、表面效度、内容效度、内敛效度、判别效度和工具效度等都达到了测量的要求。最重要的是,新量表修改了原有量表的用语,使其更符合关系营销导向的内涵,弥补了原有量表缺乏表面效度的缺陷。     

Enhancing Export Performance for Business Markets: Effects of Interorganizational Relationships on Export Market Orientation (EMO)

Purpose: Drawing on the relationship marketing perspective, this study explores the effects of interorganizational relationship variables on export market orientation (EMO), in turn enhancing the export performance. Furthermore, firm internationalization was included as a moderator between export market-oriented behavior and export performance.

Methodology: The authors tested the hypotheses via a mail survey involving 235 exporting firms. LISREL and regression analysis were used to test the proposed model.

Findings: The results support the hypotheses, which posit that commitment, trust, and social interaction are positively related to EMO behavior, whereas power is negatively related to such behavior. Second, firm EMO behavior is positively related to export performance. Third, the degree of internationalization strengthens the effect of EMO on export performance.

Research implications: This study improves existing theoretical understanding by supporting the relationship marketing perspective and international channel research for performing export market-oriented behaviors.

Practical implications: The leverage of interorganizational relationships appears a solid strategy for performing export market-oriented behaviors. Exporters can focus not only on export market-oriented behaviors being performed but also on expansion to new markets.

Originality/value: This study contributes to the marketing and international business literature and provides insights to exporters by examining the relationships among interorganizational relationship variables, EMO, and export performance. This study also introduces the degree of internationalization from a contingency-based view and demonstrates that internationalization complements EMO, and thus facilitates export performance.     

Are Market Orientation and Learning Orientation Necessary for Superior Organizational Performance?

There exists contradictory theoretical arguments and counter-intuitive empirical results regarding the market orientation, learning orientation and organizational performance nexus. We ask, can we simplify relations in this nexus? This study analyzes data from Australian organisations and employs non-nested encompassing tests. Contrary to recent findings extolling the virtues of a learning orientation, our results suggest that a market orientation may be the pre-eminent strategy to achieve superior organizational performance.     

关系营销导向研究:回顾与展望

关系营销导向是企业对关系营销理念的执行,是其获得可持续竞争优势和卓越绩效的关键因素。从关系营销导向的内涵、关系营销导向的测量及关系营销导向与企业绩效的关系三个方面,对国内外的相关文献进行了系统、全面的回顾和评述,在此基础上对未来可能的研究方向进行了展望。     

Constituent Market Orientation

This paper expands the scope of a market orientation from downstream markets to most of the major constituents of the firm. In so doing this paper addresses four questions: 1) Can constituent market orientation be measured based on modifications of the theory, concepts and measurement scales developed by Kohli and Jaworski (1990, 1993)? 2) What are the antecedents for a constituent market orientation? Are they similar across constituents? 3) What are the consequences of constituent market orientations? Which are unique for a constituent? Which stem from the sum of orientations towards all constituents? 4) What are the historic and situational moderators of orientations and consequences?     

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.     

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。     

Creating a Market Orientation

A market orientation is a business culture in whichall employees are committed to the continuous creation of superiorvalue for customers. However, businesses report limited successin developing such a culture. One approach to create a marketorientation, the approach taken by most businesses, is the programmaticapproach, an a priori approach in which a business uses educationprograms and organizational changes to attempt to implant thedesired norm of continuously creating superior value for customers.A second approach is the market-back approach, an experientialapproach in which a business continuously learns from its day-to-dayefforts to create and maintain superior value for customers andthereby continuously develops and adapts its customer-value skills,resources, and procedures. Theory suggests that both approachescontribute to increasing a market orientation. It also suggeststhat when the a priori education of the programmatic approachis sharply focused on providing a foundation for the experientiallearning, the combined effect of the two learning strategiesis the largest. The implication is that the two strategies mustbe tailored and managed as a coordinated joint strategy for creatinga market orientation.     

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.     

The Role of Market Orientation In Business Dyadic Relationships: Testing an Integrator Model

Over the last decade market orientation and relationship marketing have been huo of the most outstanding fields of research within Marketing discipline. However, little at tention has been devoted towards the investigation of the interface existing between both concepts. The aim of this study is to overcome this deficiency. Thus, the paper begins with a review of the existing literature into relationship marketing and market orientation as well as their main constructs. The result of this analysis is the proposal of a theoretical causal model in which the cultural market orientation that buyer firms show appears as a conditioning factor of their loyalty towards a supplier. Next, the methodology followed as well as the empirical contrast of the model proposed are thoroughly presented. R e empirical data was obtained from huo personal surveys conducted on the same sample of 141 industrial companies. Finally, results, conclusions and practical implications are discussed. In this way, the research proves that a buyer firm’s cultural market orientation acts as an indirect antecedent to the degree of loyalty shown to its main supplier.     

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.     

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。     

Online Media,Market Orientation,and Financial Performance in Nonprofits

The combination of social, political, and economic changes causing simultaneously decreasing funding and increasing demand for services is driving nonprofit managers to engage in proactive marketing in a for-profit model, including the use of online media. This research extends the MARKOR model of market orientation to examine the relationship between market orientation practices, as reflected in the utilization of online media, and their effects on the financial viability of nonprofit organizations (NPOs). The Wayback Machine website (http://waybackmachine.org) provided a unique ability to track site content over time, for comparison with each organization's financial indicators at corresponding points in time. The results of this study confirm the positive relationship between higher market orientation via online media presence and improved financial viability for the sampled group of NPOs. This study provides a simple, actionable, and free measure that NPOs can use to assess their current and planned online media.     

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 and Raw Material Control

Much of the existing literature on market orientation emphasizes the role played by the competencies of companies in selling products. However, in industries that rely on a natural resource sector for its primary input, another constraint may dominate: the limitations on supply of that input. We examine this issue in the context of a particular natural resource sector, the fishery, as a case study of the more general phenomenon. Using the example of Norway's apparent lack of market orientation as a supplier of fresh fish, the paper demonstrates how the characteristics of natural resource sectors as well as how public policies are used to manage those sectors may place significant roadblocks in the way of developing a market orientation by the industries that depend on those sectors for raw material. The paper notes that there has been an increased consumer demand for fresh fish, away from the frozen product. This, in principle, should lead to an increased need for a market orientation by sellers and closer relationships between the primary processors and the distributors of fresh seafood. However, several barriers, including those associated with fishery management, hinder this process. These include the presence of a structure where earnings from fishing are independent of quality, the seasonality of supplies in the raw fish markets, the way fish quotas are managed, the structure of first hand sales, and the underdeveloped relationships between supermarkets and the primary processors. In short, the analysis identifies critical linkages between fishery management and the marketing of seafood. Its broader contribution is to increased understanding of the interdependencies between the marketing of natural resource-based products and public management of that resource.     

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.