Market Orientation and Organizational Learning Capabilities

The platform of contemporary marketing thought is founded upon the marketing concept. While there has been much debate about the precise nature of this concept, related discussion concerning its manifestation, in the form of a firm's market orientation, has developed to suggest that it is a feature exhibited by organizations possessing superior skills in understanding and satisfying customer needs. Despite the favourable externalities likely to accrue to an organization that is market oriented, it has been claimed that for a firm to achieve its full potential to learn about the marketplace, instilling a market orientation is only a first principle. While market orientation provides the norms for responding to the marketplace, this needs to be complemented by appropriate mechanisms and processes for higher-order learning to occur. This article examines such a conceptual argument and empirically investigates the relationship between two key constructs: market orientation and organizational learning capabilities. Data were generated from a survey of medium and large industrial firms and five dimensions of organizational learning capability items are tested against two different groups of firms in terms of their degree of market orientation. As contrasted with low market orientation firms, organizations characterized by high levels of market orientation perceived greater organizational learning capability with regard to the dimensions of strategic awareness, operational flexibility, strategic development processes and managerial skills. Discussion is given to these findings and implications are drawn for business executives and future research.     

The influence of ethical climate on marketing employees' job attitudes and behaviors

In this study, two data sets were used to test the validity of the Babin, Boles, and Robin (Babin BJ, Boles JS, Robin DP. Representing the perceived ethical work climate among marketing employees. J Acad Mark Sci 2000;28(3):345-358.) measure of ethical work climate and its relationship with role stress, pay satisfaction, supervisor satisfaction, organizational commitment, performance, and turnover. The results indicated that ethical work climate is a multidimensional construct and that its dimensions influence marketing employees' job attitudes and job behaviors. Facets of job satisfaction and organizational commitment mediated the relationship between ethical work climate and turnover intentions and turnover.     

The installed base effect: Implications for the management of innovation

Most studies of barriers to the adoption of innovations concentrate on characteristics of the population (consumer or organizational), features of the product, or the marketing mix This paper examines a seldom studied barrier— the installed base of the technology or product being supplanted In order to describe the magnitude of this barrier and to provide recommendations for overcoming it, the Installed Base Effect is examined from three dimensions: supply, demand and market externalities     

Labor process control in modern organizations: Subtle effects of structure

Labor process control in today's work organizations is more subtle and sophisticated than in previous eras. Mechanisms such as personnel selection, training and socialization, organizational technology, organizational architecture, organizational structure, and organizational ideology and languages produce strong compliance pressures, often without appearing part of an intricate control network. Studies of organizational control intellectually grounded in systems theory have focused on processes designed to correct the occasional “deviant” action, leaving unfocused mechanisms which tend to ensure routinely compliant behavior. This article identifies subtle controlling influences resulting from the structuring of organizations. Three major dimensions of organizational structure—specialization, hierarchy of authority, and formalization—are analyzed to determine their effects on patterns of employee compliance. Although modern organizational control processes such as structural design subtly produce powerful compliance pressures on employees, conflict in organizations between capital and labor is not suppressed. Workplace struggles are an inevitable aspect of modern organization and emerge even within the confines of sophisticated controls.     

Testing interaction effects of the dimensions of market orientation on marketing program creativity

Despite the plethora of research on market orientation, our understanding of how different dimensions of market orientation interact with each other in generating new intelligence for marketing programs is limited. In this paper, we develop and test a model that examines the interaction effects of the three dimensions of market orientation—customer orientation, competitor orientation, and cross-functional integration—on generation of marketing program creativity, composed of novelty and meaningfulness dimensions. In empirically testing such effects, we illustrate how to use two-stage least squares (2SLS) estimation. We find significant positive interaction effects between customer orientation and competitor orientation and between competitor orientation and cross-functional integration in predicting marketing program novelty. We also find that competitor orientation and cross-functional integration significantly and positively interact with each other in improving marketing program meaningfulness. Our empirical results provide implications and directions for market orientation research.     

The 11 Questions Every Donor Asks and the Answers All Donors Crave: How You Can Inspire Someone to Give Generously,by H. McKinnon

Organizational learning and customer orientation have been a focus of research for a number of years in both marketing and management literature. Customer learning orientation is conceptualized as three important components: management customer orientation, customer feedback, and employee learning orientation. By drawing from both marketing and organizational research theories, the authors propose a model of customer learning orientation in a public sector organizational setting. Customer learning orientation is hypothesized to have a significant effect on employee attitudes of role ambiguity and self-efficacy, which in turn affects job outcomes of job satisfaction and organizational citizenship behaviors. Using a sample of 438 employees of a public sector organization, the authors test the model through a structural equation modeling technique. The results provide general support for the model. Implications for managers of public sector organizations and future research are discussed.     

Industrial buying behavior: A need for an integrative approach

In recent years many conceptual and methodological developments have contributed to our understanding of industrial organizations as consumers. Yet there is still a lack of purpose and no sense of direction to much of the research in the area of industrial marketing/organizational buying. This paper develops a framework for approaching organizational buying research in a more conceptually rigorous and methodologically sound fashion. Within the proposed framework current problems in the area are discussed and needed research is highlighted.     

Interdisciplinary Research Within a Modified Competing Values Model of Organizational Performance

Abstract

An interdisciplinary model of firm performance based on a modified and extended Competing Values Model of Organizational Culture combines elements drawn from three different research traditions-organizational culture and climate from organizational behavior, innovativeness from economics, and market orientation from marketing. The model has been used to analyze firm performance in business-to-business markets in a number of countries in the industrial and the industrializing worlds. In general, successful firms are found to be innovative, market oriented, and to have organizational cultures and decision-making climates which are externally oriented. In most countries, there are also identifiable national culture-specific patterns. In this paper, we focus on the inter-relationships among the streams of research upon which the model is built. Using Brazil, previously unstudied in this context, we attempt to identify a structure among the model elements to test hypotheses about (1) the inter-relationships of the explanatory variables, and (2) the relationships of the explanatory variables to each other and to firm performance. We find that the contributing disciplines produce interpretable results, and that performance is improved by achieving good results simultaneously along several inter-related dimensions.     

Global marketing strategy modeling of high tech products

This study considers the role of global marketing strategy and its relation to market orientation, international experience, and performance in the high tech products context. Knowledge of this important domain of global marketing strategy and performance remains limited. In this respect, the study raises a number of important questions concerning how market orientation, international experience and global marketing strategy impact performance. The study empirically tests predictions of relationships by using mail survey data from 172 business units of high tech firms. Findings from the research sample support the argument that market orientation, international experience, and global marketing strategy are the key antecedents of organizational performance. Market orientation and international experience influence global marketing. The article concludes with theoretical and managerial implications of the research findings.     

The Effects of Ethical Climates on Bullying Behaviour in the Workplace

Various aspects of the relationship between ethical climate types and organizational commitment have been examined, although a relationship with the concept of bullying, which may be very detrimental to an organization, has not attracted significant attention. This study contributes to the existing research by taking the effects of bullying behaviour into consideration. The aim of this study is to explore the effects of bullying behaviour upon the relationship between ethical climate types and organizational commitment. It will be noted that work-related bullying behaviour significantly mediated the relationship between instrumentality climate and two of the dimensions of organizational commitment. Significant relationships between ethical climate dimensions and organizational commitment can also be detected. By emphasizing a required ethical climate dimension for organizations this study therefore presents in outline a partial strategy to reduce bullying behaviour and to increase organizational commitment.     

Leadership Style as Driver of Salespeoples' Customer Orientation

The topic of customer orientation has increasingly attracted interest in both academic marketing research and practice. One factor which has been increasingly discussed as an important driver of a sales person's customer orientation is that of leadership style. If a sales person's supervisor expresses a strong customer orientation this should have a strong impact on the behavior of his or her subordinates. However, this aspect has not received much research attention. In this study, we propose a theoretical framework of leadership style which identifies three key dimensions: initiation of structure, consideration, and initiation of customer orientation. Hypotheses which relate these dimensions to customer oriented attitudes and behaviors are then developed and empirically examined. Results support the presence of three dimensions of customer oriented leadership style. Findings also indicate differential effects of the three dimensions on customer oriented attitudes. The academic and managerial implications of these findings are then discussed.     

The Conceptualization of Nonprofit Marketing Orientation: A Critical Reflection and Contributions Toward Closing the Practice–Theory Gap

In this article three generations of research addressing the marketing construct in nonprofit organizations are critically analyzed: (a) market orientation in nonprofit organizations, (b) societal orientation, and (c) research contributions aiming to close the existing practice–theory gap on this topic. A qualitative study among 24 nonprofit marketers is conducted in Canada and Germany to develop a construct labeled nonprofit marketing orientation. It includes the dimensions of brand orientation, supporters’ orientation, commercial orientation, and service orientation. Furthermore, the authors describe the nomological net of nonprofit marketing orientation to present interconstruct relationships and to inform future research.     

Marketing Transformation and the Concomitant Excellence of Private Institutions

The article empirically presents the findings of a study about the changes in marketing orientation and the accompanying changes in the organizational resources of the private sector institutions. This publication on the subsample of private institutions is the part of a major undertaking which was designed to: (1) to determine the degree to which marketing orientation has become the main driving force in the institutions of higher education (2) to isolate the structural characteristics which either popularize or impede the adoption of a marketing orientation, and (3)to test the central hypothesis that the increased marketing orientation leads to greater success in acquiring and managing institutional resources. The research is based on an in-depth case study method whereby 81 administrators from twenty-four universities were interviewed through personal visits. Statistical analyses indicate a rapid acceptance of marketing orientation in the private sector over the five year period of investigation. The results confirm the central hypothesis that the impellent of improved marketing orientation is higly visible on the attraction of institutional resources and the management thereof.     

Theoretical Applicability vs. Environmental Straitjacket:

This article is concerned with the application of the marketing audit, a commercially derived marketing tool, to a public sector non-profit organization. The paper reviews the literature extensively before turning to research findings derived from interviews with internal and external publics in the organizational environment. While findings indicate that a marketing audit would indeed be useful in underpinning marketing orientation, possibly as a prelude to marketing planning, they also show that organizational constraints may militate against adoption of marketing orientation. The article concludes by suggesting that marketing itself, as a generic paradigm, may not be an appropriate mechanism for organizations like ERS (Employment Rehabilitation Service). Rather ERS, and its private sector counterparts, may require the development of an entirely new discipline which may be more applicable than marketing.     

Managerial bias in anticipated images of competing shopping areas

Several dimensions of consumer retail patronage decisions that affect the firm's marketing program are investigated. In particular, the focus of the research extends previous research in the area to investigate the images held by consumers of shopping malls rather than individual stores. Second, the ability of store managers to accurately predict the image held by consumers both of their own shopping area and of a competitor's shopping area is investigated. This is designed to evaluate the ability of managers to predict consumer perceptions irrespective of their own beliefs. Finally, differences in the perceptions of two potential market segments are compared. Manager ability to differentiate between segments is noted. The implications for marketing programming decisions and the contribution the research makes to the body of literature on image measurement are discussed.     

The importance of integrating marketing planning with corporate planning

“Strategic marketing” implies that marketing has attained a corporate orientation. However, scant evidence is available to support this view. The primary focus of marketing remains at a micro, consumer-oriented level. Integration of marketing planning with corporate planning would suggest a higher perspective for marketers; recognizing that internal integration of planning is as important for effective marketing as external studies of customers and markets. Toward this end, four key dimensions of corporate planning are introduced. As corporate planning constrains marketing planning, it is this most “strategic” of outlooks that needs to be integrated into the process of marketing planning.     

Competitive position effects and market share: An exploratory investigation

This paper investigates the relative competitive position of a firm with a view toward determining those marketing effort dimensions that significantly influence market share. The study differs from previously published reports in that it utilizes the Profit Impact of Marketing Strategy (PIMS) data base on relative marketing effort to identify key marketing effort variables for two broad classes of goods: consumer nondurables and capital goods. The framework for a competitive positive effects model is developed in terms of nine relative marketing effort dimensions expressed along categories roughly corresponding to competitive superiority, parity, or inferiority. Hypotheses for the two classes of goods, gleaned from the available marketing literature, were empirically tested with use of linear regression models. Though the sets of coefficients relating to the nine marketing decision variables significantly differed ac across industries, similar patterns were found in both groups with respect to the relative breadth of product line and relative product quality dimensions. The results also tended to (a) support the claim of Buzzel et al. [Product Quality, Strategic Planning Institute, Cambridge, 1978] that for product quality to matter, improvements relative to competition must be substantial, and (b) show that for certain effort dimensions striving for competitive superiority may not generate sizable increases in relative market share.     

Internal market orientation and its influence on the satisfaction of contact personnel

To verify the dimensions, reliability and validity of internal market orientation (IMO) as a scale of measurement of internal marketing, and using it to measure the effect of internal marketing on the satisfaction of contact personnel. Interviews were carried out with all the cashiers of the 16 branches of a small, local credit institution. Because of the small sample size, partial least squares were used in the analysis of the data. The results show the validity and reliability of the IMO construct, formed by four of the five dimensions of the original scale. They also corroborate the causal relationships among the four dimensions, as well as the significant influence of the informal dimension of IMO on the satisfaction of contact personnel. The main limitation of this study is that it analyses a single financial entity, with the characteristics and behaviours that the latter has in its relationship with its employees. To achieve their organisational objectives, firms must adopt an orientation towards the employee, or internal marketing, on an equal plane to the traditional consideration of the external market. Also, the measurability of this internal orientation on the basis of the IMO scale makes available a valuable tool of planning and control in its implementation. This article verifies the validity and reliability of the IMO construct, and its influence on the satisfaction of contact personnel, in a different business sector and with a different research subject from those analysed hitherto by the literature. It also demonstrates the sequential type of relationship among the dimensions that form IMO.     

Organizational Learning and Market Orientation in International Marketing Education

SUMMARY

This study develops and tests a series of relationships between organizational learning and market orientation as it pertains to international marketing education. The focus is on the activities and relationships between the students, faculty, and staff in the international marketing/business program at three schools in the north, midwest, and south United States. Based on a sample of 193 undergraduate and graduate international marketing students, the results suggest that organizational learning (class and major area-based learning)-team orientation, systems orientation, learning orientation, and memory orientation-positively influences market orientation learning outcomes (i.e., intelligence generation, intelligence dissemination, and responsiveness). The major implication of the study is that the education provided to the students in an international marketing course (i.e., upper-division university course) can be enhanced by focusing on organizational learning tools as a means to increase the shared knowledge level among the Students.     

A Paradigm for Development and Promulgation of a Global Code of Marketing Ethics

This paper provides a paradigm for evaluating the factors that affect the development of a global code of ethics in marketing. Based on a review of the literature pertaining to global codes of ethics, we examined the potential for the development and acceptance of a universal code of ethics in the international marketing arena. Towards that end, we suggest that any global code of ethics in marketing should consider two levels – normative guidelines and specific behaviors. A discussion detailing the factors that can impede the development of such a two-tiered code is included as well. Those factors being moral reasoning, organizational ethical climate, level of economic development and cultural dimensions. Finally, the feasibility and the possible outcomes of a global code of ethics in marketing is examined.