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.

The differential and synergistic effects of market orientation and entrepreneurial orientation on hotel ambidexterity

Innovation ambidexterity has surprisingly received limited attention in hospitality research. Using data from 101 Jordanian hotels analyzed with PLS structural equation modeling, this paper reports a double differential effect of two strategic orientations, market orientation (MO) and entrepreneurial orientation (EO), on hotel ambidexterity. On the one hand, EO (MO) has a stronger impact on exploratory (exploitative) than on exploitative (exploratory) innovation. On the other hand, EO has a stronger impact than MO on both innovation forms. Furthermore, the synergy between EO and MO has a positive impact on exploitative and exploratory innovation, both of which in turn enhance hotel performance.     

Toward a greater understanding of the market orientation and internal market orientation relationship

The study explores the relationship between market orientation (MO) and internal market orientation (IMO) using the process model of MO development. Data from 370 nonprofit organizations were analyzed using structural equation modeling with maximum likelihood estimation technique. The comprehensive CFA marker method was used to partial out the influence of social desirability bias on the substantive relationships. The study finds that MO works through IMO to elicit desirable employee outcomes, which also contributes to performance outcomes. IMO does not offer direct performance benefits, but it partially mediates the effect of MO on employee-related outcomes. Competing models offering alternative explanations are ruled out empirically by the superior fit of the theoretical model with the data. The study integrates IMO in Kohli and Jaworski’s model of antecedent and consequences of MO and encourages practitioners to embed IMO in their MO development plans.     

Information technology impact on market orientation in e-business

This study presents how information technology (IT) contributes to market orientation (MO). The authors analyze the way companies deal with market intelligence to facilitate the identification of customer needs and to generate the appropriate response to such needs. Research methodology includes multiple case studies of retail companies with e-business operations (the three largest in Brazil). The findings indicate that investment in interorganizational systems strongly supports the development of MO capabilities. The article develops a framework to help companies in assessing how IT applications support their MO behaviors; as an academic contribution, the study presents two hypotheses for future studies.     

The effects of market orientation on subsidiary performance: Empirical evidence from MNCs in Turkey

Much scholarly work has been devoted to studying the performance implications of market orientation. This study examines the direct and indirect effects of market orientation on financial performance of the subsidiaries of MNCs located in Turkey. The findings indicate that a market orientation affects financial performance of MNC subsidiaries that operate in diverse and complex economic, cultural, and political environments of the Middle East. Moreover, authors demonstrate that the customer-related mechanisms (customer satisfaction and retention) mediate the market orientation–performance relationship. The paper also discusses the theoretical and practical implications of study findings.     

Size, strategic, and market orientation affects on innovation

Based on a random sample of 500 South Yorkshire non-hi-tech manufacturing small, medium-sized enterprises (SMEs) the quantitative findings support the hypothesis that size, strategic, and market orientation associate with innovation. The results show that prospectors are medium-sized companies and small companies, defenders. Prospectors are more innovative and market-oriented than defenders. The findings reveal that to succeed in an intense competitive environment, non-hi-tech manufacturing SMEs have to be proactive toward market opportunities, receptive to innovation and take the lead in new product innovation. However, their weaknesses include a lack of flexibility, a partial open culture and an organizational structure that impedes sustained innovation. This study addresses a gap in the literature, by linking innovation to the strategic orientation of the firm instead of examining firms' specific characteristics or the effects of external environment and structural factors. The research focuses on non-hi-tech manufacturing SMEs.     

Performance implications of market orientation,marketing resources,and marketing capabilities

Abstract

Drawing on the competitive capability theory, this paper examines how market orientation, marketing resources, and marketing capabilities contribute to firm performance. The empirical results show that being market oriented influences the level of marketing resources firms possess and the capability to deploy such resources. The findings show marketing resources and marketing capabilities are significant drivers of firm performance, and their impact is greater when they are complementary to each other.     

How managerial attitudes toward the natural environment affect market orientation and innovation

This study investigates natural environmental attitude linkages held by strategic decision makers and hypothesizes that the interaction between market orientation and managerial natural environmental attitudes serves to enhance the effect of market orientation on firm innovativeness. Using questionnaire responses from 284 owners or chief executive officers residing in the food processing industry, the findings establish evidence of (1) a positive linkage between market orientation and firm innovativeness, and (2) the moderating effect of managerial attitudes of top managers toward the natural environmental in the market orientation to firm innovativeness relationship. The results provide insight into the nature of the cultural values on which a market orientation is based in relation to the natural environment.     

Effect of market orientation,network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs)

This study contributes to literature on the internationalization of SMEs by analysing the influence of International Market Orientation, Network Capability, and International Entrepreneurial Orientation on the International Performance of this kind of businesses. Particularly, both the direct effects of explanatory variables of International Performance and interdependence relations between them are analysed. Results obtained from a sample of 161 Mexican SMEs using SEM-PLS analysis show that the International Performance of this kind of businesses is favourably influenced by their Network Capability and International Entrepreneurial Orientation, but not by their International Market Orientation. Similarly, it is verified that interdependence relations exist among the explanatory variables of International Performance of SMEs, where positive impact of International Entrepreneurial Orientation is observed on Network Capability and the International Market Orientation of SMEs.     

The impact of market orientation on product innovativeness and business performance

The paper reports a study of the impact of market orientation on business performance. The use of product innovativeness is proposed as a mediator of the influence of market orientation on business performance. Product innovativeness is defined along two dimensions: use of new-to-the-firm and use of new-to-the-market products. Business performance was represented by relative price premium, sales growth, capacity utilization, and profitability. The findings provide support for the positive influence of market orientation on both dimensions of product innovativeness. However, only use of new-to-the-market products turns out to be a positive contributor to business performance.     

The role of market orientation,relational capital,and internationalization speed in foreign market exit and re-entry decisions under turbulent conditions

Firms’ internationalization strategies can vary with changing environments. Occasionally, a firm may choose to re-enter a foreign market it had abandoned in the past if environmental conditions have improved. The present study provides insight into the foreign market exit and subsequent re-entry processes. Specifically, we utilize the strategic flexibility perspective to investigate the impact of market orientation, relational capital, and internationalization speed on market exit and re-entry decisions under turbulence in a host market. Using a sample of 156 Turkish firms that operated during the Arab Spring in the Egyptian market between 2010 and 2015, we find that the market-oriented firms are more flexible in their market exit decisions than less market-oriented organizations. In addition, relational capital specific to the host country has a negative impact on market exit decisions under conditions of political conflict. The results also suggest that strong ties with partners in the host country increase the propensity to re-enter the market.     

Impact of individual market orientation on selling and customer orientation

ABSTRACT

We analyze the direct effect of individual market orientation on selling orientation-customer orientation of corporate insurance agents licensed in an emerging market based on the data collected using a random survey of corporate insurance agents in the Life Insurance sector in India. The results indicated that individual market orientation had a significant relationship with selling orientation, but the intensity was weak. However, causal relationship between individual market orientation and customer orientation was moderate. Future research should focus on analyzing the influence of the dimensions of individual market orientation on employee commitment, loyalty and should analyze the moderating effects of various associated variables. The findings indicate that efforts should be made to generate market-oriented behavior among individuals to propel selling orientation and customer orientation.     

The influence of business strategy on new product activity: The role of market orientation

In this paper, we propose that business strategy influences new product activity both directly and indirectly via its influence on market orientation. Accordingly, we develop a framework linking firms' relative emphasis on cost leadership, product differentiation and focus strategies to firms' customer and competitor orientation as well as their new product development and introduction activity. We use this framework to develop a simultaneous equations model that is tested on survey data from 175 Dutch firms of varying size and across different industries in the manufacturing sector. The surprising findings are that a greater emphasis on a focus strategy results in a decreased emphasis on customer orientation and that competitor orientation has a negative direct influence on new product activity and an indirect positive effect via customer orientation. We discuss the implications of these findings for theory and practice.     

Technological turbulence, supplier market orientation, and buyer satisfaction

The channel literature suggests that building a close relationship with key partners is one of the key strategies that channel members use to overcome the challenges of a changing environment. However, such a strategy may be ineffective when high technological turbulence exists in the buyer's market. This study focuses on the buyer's perspective in channel relationships and examines the buyer's satisfaction with outcomes resulting from engaging in relationships with a supplier. The results show that a buyer's performance is enhanced when a buyer develops a close relationship with a supplier whom it perceives to be market oriented but that a close relationship becomes detrimental to performance when technological turbulence increases. These findings suggest that managers need to be aware of the effect of technological turbulence and be alert in managing close relationships even with market-oriented suppliers.     

Diffusing market orientation to drive marketing capital: evidence from Vietnam

Although Vietnam’s transition to a market-oriented economy has produced stunning results, the economy is still lacking qualified marketers. This study investigates underlying factors that are fundamental drivers of Vietnam’s economic renaissance, including the role of market orientation at the marketer level (i.e. marketers’ market orientation) in marketing capital pool, and subsequently, marketers’ occupational commitment. Based on data collected from 351 marketers working for various firms in Ho Chi Minh City, the study finds that marketers’ market orientation has a positive impact on marketing capital pool. Further, marketing capital pool invested by marketers has a positive impact on their occupational commitment. Finally, firm ownership moderates the relationship between marketers’ market orientation and marketing capital pool, and gender moderates the relationship between marketing capital pool and marketers’ occupational commitment. Implications for Vietnam and other transitioning economies are discussed.     

Entrepreneurial orientation,market orientation,network ties,and performance: Study of entrepreneurial firms in a developing economy

Entrepreneurial orientation (EO), market orientation (MO) and network ties are typically modeled as separate antecedents of performance. However, the boundary conditions for such models are under-explored, as is their applicability to developing economy settings. Accordingly, drawing on institutional and social capital theories, the current paper argues that the performance benefits of EO and MO are complementary, and vary across different levels of social and business network ties. Using primary data gathered from entrepreneurial firms operating in Ghana, the study findings indicate that aligning high levels of EO and MO improves business performance, and particularly so when social and business network ties are well developed, since under these latter conditions, the performance benefits of aligning EO and MO are greatest.     

The effects of entrepreneurial orientation and marketing information on the performance of SMEs

In this study, we investigate the effects of entrepreneurial orientation and marketing information on the performance of small and medium-sized enterprises. We build and test a causal model using data obtained from Singaporean entrepreneurs and find support for most of our hypotheses. The results indicate that entrepreneurial orientation plays an influential role on the acquisition and utilization of marketing information, and also has a direct effect on firm performance. The utilization of information regarding marketing mix decisions (particularly the Promotion and Place elements) positively affects firm performance, and it partially mediates the relationship between entrepreneurial orientation and firm performance. The implications and future research directions are discussed.     

The influence of service orientation and interaction orientation on consumer identification

A service orientation aims to provide professional and comprehensive service items to consumers in a sale or a non-sale situation, while an interaction orientation has the goal of creating good interaction ability with individual customers in order to maintain long-term, profitable customer relationships, and in the process obtaining valuable information about individual customers. These orientations build customer-centric operations and develop competitive advantages, thus enhancing firm performance and customer value. The main purpose of this study was to examine the relative and collective contributions of different strategic orientations on a firm's performance, with a focus on consumer–company identification. The structural equation model results indicate that (1) both service orientation and interaction orientation positively influence consumer–company identification and (2) interaction orientation results in higher perceived consumer identification.     

Reducing distributor opportunism in the export market: Effects of monitoring mechanisms, norm-based information exchange, and market orientation

As monitoring mechanisms are critical to exporter–distributor relationships, the effectiveness of different types of monitoring mechanisms remains an important issue. Our study goes beyond the separate effects of monitoring mechanisms on opportunism, and tests the moderating effects of market orientation (MO) and norm-based information exchange on the monitoring mechanism–opportunism relationship. Based on survey data of 160 export ventures in China, we find that process control increases distributor opportunism, while norm-based information exchange and MO decrease it. Moreover, at high levels of norm-based information exchange and MO, the impact of process control on opportunism turns from positive to negative.     

New entrepreneurial ventures in a globalized world: The role of market orientation

The present study examines the performance consequences of a market orientation for new entrepreneurial ventures in a globalized world. We show that market orientation indeed positively impacts the performance of new entrepreneurial ventures, regardless of their geographical setting. While market orientation turns out to be a general success factor in a globalized world, the strength of the performance relationship however is contingent to the national culture as one major differentiator between geographical settings. The effect turns out to be stronger in collectivist and high uncertainty avoidance cultures. Findings are derived based on large samples with German and Thai new entrepreneurial ventures. Partial least square is applied as the method of analysis.