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.     

A Customer Value Perspective in the Nonprofit Marketing Context: Expanding the Means-End Chain for Multiple Stakeholders

ABSTRACT

Very little of the current research on nonprofit marketing adopts a customer value perspective. This paper will (1) briefly outline the special customer value challenges faced by nonprofit organizations, such as multiple stakeholders and a lack of marketing orientation; (2) describe the innovative customer value approach developed by Woodruff and Gardial (1996); and (3) offer a model applying the Wood-ruff/Gardial approach in the NPO context, including research propositions.     

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。     

The Role of Customer Orientation as a Moderator of the Job Demand–Burnout–Performance Relationship: A Surface-Level Trait Perspective

This study expands upon previous research on the antecedents (job demands and job resources) and outcomes of frontline employee burnout, and examines the role of customer orientation (CO) in the burnout process. Using data from frontline bank employees in New Zealand, we investigate both the direct relationships of CO to burnout and job outcomes (job performance and turnover intentions) and the buffering role of CO concerning the relationships between job demands, burnout, and job outcomes. The study results show that burnout mediates the effects of job demands and job resources on job performance and turnover intentions. Besides being directly related to burnout and job performance, CO also buffers the dysfunctional effects of job demands on burnout and job outcomes. Implications of the results are discussed and future research avenues are offered.     

The Impact of Organizational and Environmental Variables on Strategic Market Orientation

Abstract

This paper offers a new look at market orientation by conceptualizing it from a strategic perspective. It differs from the current literature in that it develops a measure that emphasizes managerial attitudes and strategic intent. The new measure is empirically scrutinized by an investigation of its relationship with pertinent organizational and environmental variables, as well as company performance. Based on a survey of nearly 400 companies operating in the U.S., significant relationships emerged between Strategic Market Orientation and three organizational variables, namely strategic priorities, inter-departmental coordination and ownership nationality. Two of the environmental variables, namely intensity of competition and rate of technological change were also significantly related to Strategic Market Orientation. The relationship between Strategic Market Orientation and company performance remained inconclusive.     

The Carryover Effect of Customer Satisfaction on Service Quality Focused on Moderating Effect of Customer Trust and Cooperative Orientation

The current study is intended to provide a novel contribution in regards to the relationship between service quality and customer satisfaction by focusing on carryover effects of satisfaction judgment on perceived service quality of the subsequent transaction. In addition, we probe the role of customer trust in the relationship between customer satisfaction and service quality. The results indicate a cycle of customer satisfaction and perceived quality over time, which validates the concept of cycle of satisfaction. The results also indicate trust toward a service provider has a moderating role on the relationship between customer satisfaction and perceived service quality.     

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.     

Moderating Effect of Relationship Life Cycle in Long-Term Orientation of Firm-Supplier Relationships

Abstract

The study of the long-term orientation of the commercial relationships established between companies and their suppliers is a topic of great interest at the present time. But although many authors have analyzed this temporal orientation, few have examined its dynamic nature. Moreover, there are no previous studies looking at the moderating effect of the relationship life cycle on the factors determining the temporal orientation of these relationships, comparing how some antecedents could have different effects depending on the specific stage the relationship has reached.

Thus, in the context of the Spanish agro-food sector, the current work examines this moderating effect, considering the industrial customers' point of view. Specifically, we analyze the effect of the initial stage compared with the intermediate stage of the life cycle on a set of antecedent factors of this long-term orientation. Our research offers important implications for the management of elements such as communication, cooperation, trust, satisfaction and commitment.     

中国企业的学习型组织文化:基于人口统计变量、企业属性、工作满意度和组织绩效的实证分析

By using a Western concept—the instrument called dimensions of learning organization questionnaire (DLOQ), and the data collected from 919 employees in nine companies located in Guangdong Province, China, the present empirical study explores the culture of learning organizations in Chinese business settings. Findings suggest that the DLOQ is applicable to the context of China as well, and those demographic variables, such as age and educational level, together with the types of ownership of Chinese companies, such as state-owned enterprises (SOEs) and privately-owned enterprises (POEs), suggest differences in the culture of learning organizations. Results also indicate that the learning organization culture of a firm has strongly positive impact on employees’ job satisfaction and perceived organizational performance. Two implications should be noted. First, as employees in middle age and with college education show the strongest sense of improving the learning culture, it can be inferred that demographic characters and groups may influence the organization’s learning culture differently. Second, as POEs have a better learning atmosphere than SOEs, it can be inferred that POEs have a stronger competitiveness than SOEs in terms of learning ability and organizational performance. To indigenize the Western construct and instrument of learning organizations, the present study, as an exploratory research, gives substantial knowledge on the subject and seeks to fill the gap in the literature, despite the limitations of cultural nuances and a narrowly-concentrated sample.     

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.     

Customer satisfaction and retail sales performance: an empirical investigation

We measure the links between store attribute perceptions and customer satisfaction, and between customer satisfaction and sales performance. Our data set consists of six waves of customer satisfaction and sales data for about 250 retail outlets over the period 1998-2001 for a publicly held supermarket company. We construct a statistical model to address nonlinearities and asymmetries in the satisfaction-sales performance links, and we illustrate how retailers can affect store revenues by managing customer satisfaction. Contributions of our study include the analysis of behavioral consequences of customer satisfaction in the food retail sector, the accommodation of complexities in the satisfaction-sales performance links based on an empirical model of first differences, and a discussion of how managers can employ the results for customer satisfaction policies.     

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。     

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.     

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.     

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.     

Customer participation and citizenship behavioral influences on employee performance, satisfaction, commitment, and turnover intention

Despite increasing awareness of the importance of customer behaviors in service delivery, understanding consequences relating to employees receives little attention. Therefore, using data from a large electronic firm relating to customers, employees, and managers, this study examines the effects of customer participation and citizenship behavior on employee performance, satisfaction and commitment, as well as indirect effects on turnover intention. Furthermore, the study examines how similarity and likeability moderate the effects of customer participation and citizenship behavior on employee satisfaction. The study also includes a laboratory experiment and provides further support for causal direction. The article discusses marketing implications of the results.     

Entrepreneurial Orientation,Dynamic Capabilities and International Performance

In order to be able to seize the opportunities that a dynamic operating environment opens up, entrepreneurial firms have to reconfigure their existing asset base and processes. This study explores the effect of an entrepreneurial orientation and a firm's reconfiguring capabilities on international performance by using survey data from 217 manufacturing and service organizations. Our findings indicate that a firm's entrepreneurial orientation and reconfiguring capabilities have an effect on its international performance and provide empirical support for the dynamic capability view of the firm. Entrepreneurial behavior combined with organizational reconfiguring capabilities constitutes a potential source of competitive advantage.     

Customer interaction in environmental innovation: the case of cloth diaper laundering

The aim of this paper is to illustrate the capability of a customer of a service business to act as a co-manufacturer. Thus, the customer becomes a key element in simultaneously improving environmental performance and competitiveness, in both the environmental dimension as well as in other dimensions. To this end, we have analyzed the case of the Dydee Company. In order to address the root of the environmental issues, certain procedures were used to change the customers’ habits. This option turned out to be much more efficient and less risky than its alternatives. The challenge laid in getting the customers, once informed, to be willing to modify such a personal and delicate task. The exchange rate at the time of writing this case analysis (9 September 1999) was 166 pesetas to the dollar, that is, approximately the current value of 1 euro.     

Effect of Customers' and Suppliers' Perceptions of the Market Orientation of Manufacturing Firms on Channel Relationships and Financial Performance

ABSTRACT

This study is designed to investigate the effect of customers' and suppliers' perceptions of the market orientation of manufacturing firms on customers' and suppliers' trust in, cooperative norms in, and satisfaction with the relationship with the manufacturing firm. The findings from a sample of 72 matched sets of suppliers, manufacturing firms and customers in industrial channels in the Netherlands reveal that the perceived market orientation of manufacturing firms engaged in channel partnerships has a positive influence on customers' and suppliers' levels of trust in, cooperative norms in, and satisfaction with the relationship. This study further investigates the effect of the customers' and suppliers' trust in, cooperative norms in, and satisfaction with the relationship on the financial performance of the manufacturing firm. The results reveal that customers' and suppliers' cooperative norms in the relationship positively influence the manufacturing firm's financial performance. Customer's and supplier's trust in and satisfaction with the relationship have no effect on the manufacturing firm's financial performance.     

The Impact of Market Orientation on the Internationalization of Retailing Firms: Tesco in Eastern Europe

This paper investigates a Western retailer's market orientation levels in two emerging markets. We examine whether the market orientation-company performance link holds true for retailers in emerging economies, despite environmental differences. By using concepts from key studies we have assimilated a fully representative model - applied through interviews with top management from Tesco and its subsidiaries and affiliates in Hungary and Slovenia. Using this example, we find that the market orientation-business performance link is valid for Western retailers in emerging economies. Here, the retailer applied market orientation predominately through; the use of matching with suppliers of own brand goods; top management emphasis on market orientation and risk taking. Intelligence generation and dissemination was exercised via global processes such as brand review.