Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation

While it is generally agreed that a customer and entrepreneurial orientation enhance company performance in large multi-national organizations, relatively little is known about how these variables influence the small retailers that form a substantial part of national economic well-being. This study investigates the potential influences of these factors on the performance of small retailers in Switzerland, because this nation has long had a reputation for creativity, innovation and a customer focus. Performance is viewed as a two dimensional concept including an effectiveness and an efficiency perspective. Data for this study were collected through personal interviews from 261 SMEs. While customer orientation is found to be positively related to both efficiency and effectiveness, results only show a positive impact from entrepreneurial orientation on effectiveness. At the same time, entrepreneurial orientation is found to be a driver of customer orientation, and thus having an indirect impact also on efficiency for the small retail firms. All in all, the study shows that small retailers do indeed put an emphasis on both customer and entrepreneurial orientation in spite of their limited resources. It also stresses that this will increase their competitive advantage. In the light of existing literature, limitations and future research directions are subsequently addressed.     

An examination of the relationships among market orientation,innovation resources,reputational resources,and company performance in the transitional economy of Slovenia

We investigated relationships among market orientation, innovation and reputational resources, and their impact on market performance and financial performance within the transitional economy of Slovenia. Market orientation related positively to market and financial performance of firms indirectly through innovation and reputational resources. Reputational resources associated positively with loyalty, market share, and sales volume, innovation resources associated positively with market share, and sales volume indirectly through customer loyalty. Selected marketing resources related positively to financial performance indirectly through customer loyalty, market share, and sales volume. The implications of these findings for theory and practice are considered. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.     

Salesperson CLV orientation's effect on performance

Previous studies show how strategies based on the customer lifetime value (CLV) can lead to an increase of profitability for a firm. In this context, marketing serves the purpose of maximizing CLV and customer equity (the CLV of current and future customers). For most types of service firms, salespeople are direct participants in implementing the CLV concept. However, prior research does not answer the question of whether or how salesperson CLV orientation can enhance profits. Using data on salespeople in a large Chilean retail bank, this study shows that the effect of salesperson CLV orientation on salesperson performance follows an S-shaped function (which is first convex and then concave). Additionally, data does not support the idea that the optimum level of CLV orientation depends on salesperson customer orientation, salesperson adaptive selling behavior, or salesperson experience (i.e., CLV-oriented behaviors could be effective across a wide range of salespeople). As such, this study addresses an important concern among researchers and managers that is related to how to increase the salesperson performance. The findings of this study suggest that firms need to monitor individual salesperson CLV orientation more closely.     

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 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.     

Competitor orientation in successful SMEs: an exploration of the impact on innovation

The impact of market orientation on organisational performance has been the subject of many studies illustrating variance with firm size. Although small- to medium-sized enterprises (SMEs) are inherently customer-oriented, research has identified that they have significantly lower levels of competitor orientation than large firms and that competitor orientation is significantly related to organisational performance. In addition, studies have illustrated that SME success is linked to innovative problem solving, new product development and resource optimisation. SMEs are inherently innovative in how they adopt creative approaches to overcome constraints associated with their size. Given that SMEs often neglect to focus on competitors, this study explores the relationship between competitor orientation and organisational performance through an innovation lens. This study uses a qualitative research approach to investigate seven successful SMEs as case studies. The findings indicate that SMEs seeking optimal organisational performance should pay close attention to direct and indirect competitors in order to identify opportunities and build sustainable competitive businesses.     

Is it better for salespeople to have the highest customer orientation or a strong fit with their group's customer orientation? Findings from automobile dealerships

The purpose of this study is to examine how retail salesperson-group fit on customer orientation impacts sales performance. Customer orientation fit will be compared against the amount of customer orientation to answer the question of whether it is better to have higher customer orientation or consistent customer orientation. This study shows that fit with the group's customer orientation is more important than having a high customer orientation; individuals who deviate from the group's customer orientation have lower performance than individuals who fit their group's customer orientation. Although previous research finds that group-level performance is stronger in groups that have consistently high customer orientation, we find that individual sales performance depends on fit with other group members, regardless of the orientation of the group.     

Does managing customer accounts receivable impact customer relationships,and sales performance? An empirical investigation

The impact of accounts receivables on the performance of salespersons is largely ignored in sales literature. However, in many sales contexts, managing customers' accounts receivables is directly managed by the salespeople, and therefore substantially impacts their sales performance. Towards such sales contexts, in this empirical study, we study the effect of customer account receivables and salespersons' customer orientation on their relationship orientation and customer-related performance. We further analyse the direct impact of relationship orientation on customer-related performance. Using survey-based data from 224 salespersons based out of India, we empirically test the proposed model using partial least squares structural equation modelling. Our findings suggest that accounts receivables from customers and salespersons ‘customer orientation strongly impact relationship building and also improves customer-related performance. The salespersons’ relationship orientation also partially mediates the relationship between customer account receivables and customer-related performance. Therefore, this study provides much-required evidence to establish the salience of salesforce appropriately managing customers' account receivables so that its impact on their sales performance customer relationships are not adversely affected.     

An analysis of social media marketing strategy and performance in the context of fashion brands: The case of Taiwan

This study examines the social media strategy and performance of fashion brands. Drawing upon the resource-based view, the study explores the influence of entrepreneurial orientation, innovation orientation, and market orientation on social media strategy and performance. Analysis was conducted using data on 207 Taiwanese fashion brands. These data were collected from a mail survey. Structural equation modeling and fuzzy-set qualitative comparative analysis were used to test the empirical relationships proposed in the research hypotheses. The results indicate that social media strategy affects performance; entrepreneurial orientation and innovation orientation affect social media strategy; entrepreneurial orientation positively affects performance; and innovation orientation and market orientation positively affect performance.     

Matching the Personal Initiative Capabilities of FLEs to Their Self-Regulatory Processes and the Firm's Initiative Climate

Frontline employees (FLEs) — the people behind the counter, on the phone, or walking the shop floor — can profoundly affect the customer experience. Harnessing the capability of FLEs to positively shape customer experiences is critical for service firms.However, placing the right employee in the right frontline role is not an easy task. To deliver positive service experiences, FLEs must be customer-oriented, placing customers’ interests first. In addition, FLEs need to demonstrate personal initiative by going beyond prescribed job roles to find solutions to customer problems. We propose that personal initiative is an important mediating variable in the relationship between customer orientation and FLE performance. Further, we examine whether this relationship is strengthened or weakened when a firm’s climate encourages initiative-taking behavior and FLEs have a prove or avoid orientation, or engage in deep or surface acting. We test the model across two studies using a multi-respondent data collection procedure within the retail banking sector. Our findings demonstrate that personal initiative mediates the relationship between customer orientation and FLE performance. Notably, this effect is stronger when a firm’s climate encourages initiative-taking and when FLEs have a prove orientation or engage in deep acting, and that the effect is weaker when FLEs have an avoid orientation or engage in surface acting. Our findings underscore that it is only when the fit between FLEs, their roles, and the work climate is right that firms will get the best out of their employees (c.f., Arthur et al. 2006; Kristof-Brown et al., 2005).     

Servant Leadership,Proactive Work Behavior,and Performance Overall Rating: Testing a Multilevel Model of Moderated Mediation

ABSTRACT

Purpose: The goal of this paper is to investigate whether salesperson proactive behavior mediates the relationship between sales manager servant leadership and salesperson overall performance rating by the sales manager. Moreover, it examines whether salesperson customer orientation and political skill moderate the sales manager servant leadership ? salesperson proactive behavior ─ salesperson overall performance. Design/methodology/approach: Empirical analysis is based on dyadic data from 181 industrial salespeople and their sales managers in a range of different industries (including both manufacturing and service industries). To analyze the multilevel moderated mediation process, this investigation uses Multilevel Structural Equation Modeling (MSEM). Findings: Sales manager servant leadership was positively related to salespeople overall performance rating through their proactive behavior except when their customer orientation was low. Moreover, this relationship between sales manager servant leadership and overall performance rating through proactive work behavior was stronger the greater the salespeople consumer orientation and political skill. Research implications: The study suggests that sales manager servant leadership is indirectly related to salesperson overall performance rating through salesperson proactive behavior. The findings also support subsequent research on salesperson values, skills, and behaviors as moderators in the servant leadership – proactive behavior – overall performance rating relationship. Understanding how these salesperson factors interact with sales management leadership to produce organizational outcomes (e.g., stress, engagement, organizational commitment) are questions that sales researchers may wish to pursue via further study. Practical implications: Sales managers should employ servant leadership to stimulate salespeople proactive work behavior. This study clearly indicates the salespeople need to adopt customer orientation and to have political skill. Hence, sales managers need to try to improve the customer orientation and the political skill of their salespeople through selection procedures or training programs. Originality/value: The relationship between sales manager servant leadership and salesperson overall performance through proactive work behavior has not been addressed and tested in the literature to date.     

Relating strategic market orientation and market performance: role of customer value types

A service provider achieves competitive advantage by configuring appropriate strategic orientation and customer value type. This paper addresses three important issues: (i) which customer value type (economical, relational or technical) is important for bank customers? (ii) which strategic market orientation (customer or competitor) helps in achieving the desired value type? and (iii) which value type significantly predicts market performance? We propose that a strategic market orientation pursued by a firm shall influence the customer value it intends to offer so as to maximize the market performance. Using data collected from 538 bank customers, this study reveals that when there is a perfect match between strategic market orientation and value being perceived by its customers, a firm shall achieve strategy-value fit and realize optimal market outcomes in the form of customer satisfaction, acquisition, retention, cross-selling, and up-selling. Furthermore, a bank shall realize maximum level of market performance if it pursues both customer and competitor orientation and endeavors to deliver technical/functional value to its target customers. The paper concludes with managerial implications and future research directions.     

Work Ethic,Locus of Control and Salesforce Task Performance

Abstract

This study explores the relationship between work ethic, locus of control and salesforce task performance. Using data from Uganda retail firms, this study finds that work ethic was a significant positive predictor of salesforce task performance. Further, there was a significant relationship between the different behavioural families of work-related activity work withdrawal behaviours, organizational retaliation behaviours and salesforce task performance. Results from regression analysis indicate that organizational retaliation behaviours and work withdrawal behaviours are important factors for explaining declining performance of salespeople in Uganda retail firms. Managers aiming to improve salesforce task performance should recruit individuals with a strong work ethic. Additionally, retail managers need to reduce work withdrawal and organizational retaliation behaviours so as to increase salesforce task performance.     

The moderating role of managerial ties in market orientation and innovation: An Asian perspective

This empirical study contributes to the extant literature by investigating the relations among market orientation, managerial ties and innovation simultaneously and interactively, from an Asian perspective. Our findings reveal that customer orientation and interfunctional coordination have a positive impact on innovation. Moreover, managerial ties play a moderation role in the market orientation–innovation linkage. Business ties enhance the relation between customer orientation and interfunctional coordination and innovation. On the other hand, business ties and competitor orientation have a negative interaction effect on innovation. In addition, political ties also dampen the relation between interfunctional coordination and innovation. Such results add new insights to the extant literature and provide implications for future research and marketing practices in Asia.     

Entrepreneurial capacities as antecedents of business performance in Brazilian firms

We investigate the relationship between entrepreneurial capacities and firm performance. More specifically, we investigate the effects of radical innovation and learning orientation on business performance. We test the effects of entrepreneurial orientation on learning orientation and radical innovation. The results suggest that radical product innovation and companies' orientation to learn have a positive effect on organizational performance. Additionally, we find that entrepreneurial orientation positively influences a firm's capability to learn and innovate. Our findings also show a direct effect of learning orientation on radical innovation, which means that companies with a higher proclivity to learn are more likely to create products and processes, representing a major departure from the state of current knowledge. Copyright © 2014 ASAC. Published by John Wiley & Sons, Ltd.     

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.     

市场导向、组织学习创新及组织绩效:基于珠江三角洲企业的实证研究

The purpose of this paper is to examine the relationships among market orientation, learning orientation, organizational innovation and organizational performance through a structural equation modeling approach. This study uses a sample of 143 companies in the Pearl River Delta region of China. Results show that (1) market orientation has no positive direct impact on organizational performance; (2) market orientation has a direct impact on learning orientation; (3) learning orientation has a direct impact on administrative and technical innovation; (4) market orientation has a direct impact on organizational innovation by learning orientation; (5) administrative innovation has a positive direct impact on organizational performance while technical innovation does not impact on organizational performance directly; (6) technical innovation has a positive impact on administrative innovation; (7) learning orientation has an indirect impact on organizational performance through influencing organizational innovation; (8) market orientation has impact on learning orientation, which has an impact on organizational innovation, which in turn has an impact on organizational performance. Managerial implications are discussed, along with suggestions for further research. Translated from Guanli Shijie 管理世界 (Management World), 2006, (2): 80–94, 143     

The influence of task characteristics and job-related characteristics on retail salesperson selling orientation

This study examines the influence of task characteristics and job-related characteristics on the level of customer orientation exhibited by retail salespeople. The task characteristics examined are task variety, task autonomy, task identity and feedback. The job-related characteristics included in the study are job satisfaction, work motivation, organizational commitment, job involvement, role conflict, and supervisor–employee relationship. A survey using a self-administered close-ended questionnaire was conducted on retail salespeople from five major retailers in Singapore. Pearson correlation analysis revealed that the above factors, with the exception of role conflict, have significant influence on the customer orientation of retail salespeople. The six most important predictors of the customer orientation of retail salespeople identified by multiple regression analysis were task identity, organizational commitment, autonomy, education level, job satisfaction, and supervisor–employee relationship.     

Role of customer orientation in an integrative model of brand loyalty in services

This study attempts to model the development of brand loyalty by examining the simultaneous effects of customer orientation, perceived quality, brand associations, and satisfaction on brand loyalty. Data are used from retail banking and discount store retailing services to examine the direct and indirect effects of customer perceptions of customer orientation and quality on brand loyalty. It was found that customer orientation has a direct effect on brand loyalty and indirect effects through customer satisfaction, perceived quality, and brand associations as mediators. Further, perceived quality has a direct effect on brand loyalty as well as an indirect effect with satisfaction as a mediator. The results suggest that effective management of brand loyalty would require tracking of customer perceptions of a firm's customer orientation, quality and brand, in addition to measuring customer satisfaction.     

High performance work systems and corporate performance: the influence of entrepreneurial orientation and organizational learning

This study investigates the functioning mechanisms of how high performance work systems (HPWS) affect organizational performance. We propose that (HPWS) can positively affect organizational performance through the mediating role of entrepreneurial orientation. An organization with high performance work systems can perform better if it enjoys high level of organizational learning. We design and administer a survey questionnaire to high-level executives or founders of companies from manufacturing and service industries and receive 176 valid responses. The results of the empirical data indicate that the relationship between high performance work systems and corporate performance is more positive when organizational learning is stronger. Entrepreneurial orientation partially mediates the relationship between high performance work systems and organizational performance. This study opens new research avenues by extending and incorporating explanations and predictions of HPWS and entrepreneurial orientation, two areas that largely have been considered independently of each other. Implications for practice and directions for future research are provided.