Market orientation, innovation capability and business performance

2014 ◽  
Vol 9 (2) ◽  
pp. 134-152 ◽  
Author(s):  
Juho-Petteri Huhtala ◽  
Antti Sihvonen ◽  
Johanna Frösén ◽  
Matti Jaakkola ◽  
Henrikki Tikkanen
Keyword(s):  
Market Orientation ◽  
Business Performance ◽  
Partial Least Square ◽  
Mediating Effect ◽  
Innovation Capability ◽  
Content Type ◽  
Economic Upturn ◽  
Economic Boom ◽  
The Relationship

Purpose – The paper aims to examine the role of market orientation (MO) and innovation capability in determining business performance during an economic upturn and downturn. Design/methodology/approach – The data comprise two national-level surveys conducted in Finland in 2008, representing an economic boom, and in 2010 when the global economic crisis had hit the Finnish market. Partial least square path analysis is used to test the potential mediating effect of innovation capability on the relationship between MO and business performance during economic boom and bust. Findings – The results show that innovation capability fully mediates the performance effects of a MO during an economic upturn, whereas the mediation is only partial during a downturn. Innovation capability also mediates the relationship between a customer orientation and business performance during an upturn, whereas the mediating effect culminates in a competitor orientation during a downturn. Thus, the role of innovation capability as a mediator between the individual market-orientation components varies along the business cycle. Originality/value – This paper is one of the first studies that empirically examine the impact of the economic cycle on the relationship between strategic marketing concepts, such as MO or innovation capability, and the firm's business performance.

Trust: mediator between mobile money adoption and usage and financial inclusion

2019 ◽  
Vol 16 (8) ◽  
pp. 1215-1237
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Ntayi
Keyword(s):  
Developing Countries ◽  
Mobile Network ◽  
Mobile Telephone ◽  
Partial Least Square ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Content Type ◽  
Mobile Money ◽  
The Relationship

Purpose Recently, a large body of research has been devoted on the role of trust in shaping different types of transactions, especially in rural financial development. Trust is a set of expectations shared by all those who engage in an exchange. Indeed, the “rule of the game” suggests that no trusting party in a transaction should act opportunistically. Consequently, this study aims to establish the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion of MSMEs in developing countries with a specific focus on rural Uganda. Design/methodology/approach A quantitative survey-based study was used and responses obtained from 379 MSMEs located in northern Uganda were analysed using partial least square-PLS version 3.0. A semi-structured questionnaire was developed from scales and items used in previous studies referenced in internationally recognised journals to elicit responses from the MSMEs. Structural equation modelling was used to test the models to arrive at a final empirical model derived from the data. Findings The authors found evidence that trust enhances mobile money adoption and usage to increase the scope of financial inclusion of MSMEs in developing countries. Moreover, when individual effect was determined, trust also had significant and positive effect on financial inclusion. Thus, the study results imply that trust enhances mobile money adoption and usage to improve the level of financial inclusion of MSMEs in developing countries. Research limitations/implications The study used cross-sectional data to document the relationship between mobile money adoption and usage and financial inclusion and to establish the mediating effect of trust in the relationship. Future research could use relevant longitudinal data to verify other benefits of trust. Practical implications The results present trust as a significant factor for FINTECH financial services marketing and growth. Specifically, data privacy and effectiveness of the mobile telephone network is more likely to help consumers to bridge the gap between participation and non-participation on the mobile money platform. Customers’ data sent over the mobile network of providers should be protected from unnecessary access and usage by Mobile Network Operators (MNOs) staff and unauthorised persons and agents. Data protection protocols should be set by the MNOs to avoid unnecessary access and use of customers’ data. Originality/value Globally, Fintech scholars have examined the role of mobile money in promoting financial inclusion. However, there is insufficient evidence on the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion, especially among rural MSMEs. This study invents a novel direction on the importance of trust in creating transaction efficiency by eliminating opportunism and fraud with in the Fintech ecosystem.

Frontline employees’ engagement and business performance: the mediating role of customer-oriented behaviors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Behrooz Ghlichlee ◽  
Fatima Bayat
Keyword(s):  
Business Performance ◽  
Banking Sector ◽  
Retail Banking ◽  
Mediating Effect ◽  
Business Trend ◽  
Frontline Employees ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose Within the retail banking sector, the customer-centric business model has become an important and new business trend in recent years. The enhancement of the frontline service employees’ engagement and their customer-oriented behaviors are among the key factors affecting business performance (BP) in this sector of the banking industry. The purpose of this paper is to improve management decisions to enhance BP through examining the relationship between the frontline employees’ engagement and BP while taking into account the mediating effect of customer-oriented behaviors on this relationship. Design/methodology/approach A quantitative approach was adopted to conduct the present study, and the respondents were sampled from a large commercial bank in Iran using a structured questionnaire. Overall, 50 branch managers and 90 frontline employees were selected using random sampling. A confirmatory factor analysis was conducted to ascertain the validity and reliability of the observed items and a structural equation model was used for testing the proposed hypotheses and research framework. Findings The findings showed that customer-oriented behaviors mediated the relationship between the frontline employees’ engagement and bank’s branches’ BP. Higher levels of the frontline employees’ engagement enhance the customer-oriented behaviors. It was revealed that the frontline employees are engaged in their job and organization. Moreover, the engaged frontline employees listen carefully to customers, the customer’s problem is important to them and they complete their tasks precisely for customers. It has been confirmed that customer-oriented behaviors enhance branches’ BP. The bank frontline employees’ engagement and customer-oriented behaviors, in turn, affected the bank’s branches’ financial performance, process performance and employee performance compared with the bank’s key competitors. Research limitations/implications This study highlights the value of empirically establishing how employee customer-oriented behaviors are affected by employee engagement as an integrative construct bringing together BP. Practical implications This study can help improve BP by increasing the frontline employees’ engagement and their customer-oriented behaviors. This study suggests that organizations using the findings of this study could effectively assess their frontline employees’ engagement and their customer-oriented behaviors and then plan for improving them. Social implications This study offers a customer-oriented initiative as a social responsibility to be considered by retail banks. In light of the social exchange theory, the banks valuing customer-oriented can provide employees with knowledge, skills, values and support to develop motivation and abilities to demonstrate customer-oriented organizational citizenship behaviors. Originality/value Previous studies demonstrated that the employees’ engagement affects their customer-oriented behaviors. In addition, studies have referred to the effect of employees’ customer-oriented behaviors on BP. However, to the best of the knowledge, key questions regarding how the employees’ engagement at the branch level fosters customer-oriented behaviors and, in turn, the bank’s branches’ BP, remain unanswered. Hence, this study contributes to the investigation of the mediating role of the frontline employees’ customer-oriented behaviors in the relationship between their engagement and branches’ BP in the retail banking sector.

Intellectual capital and business performance: the role of dimensions of absorptive capacity

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan
Keyword(s):  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Business Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

Examining the impact of socialization and information sharing and the mediating effect of trust on innovation capability

2016 ◽  
Vol 36 (11) ◽  
pp. 1601-1624 ◽  
Author(s):  
Nisha Paul Kulangara ◽  
Sherry Avery Jackson ◽  
Edmund Prater
Keyword(s):  
Information Sharing ◽  
Business Environment ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the interrelationship between trust, socialization, and information sharing on the buying firm’s innovation capability in the context of the buyer-supplier relationship (BSR). A nomological model is developed that examines the mediating role of relational capital (supplier trust) on the relationship between structural capital (socialization and information sharing) and innovation capability. Design/methodology/approach A survey was conducted on 357 US executives. Structural equation modeling was used to analyze the hypothesized relationships. Findings Information sharing and formal socialization activities increased the buying firm’s trust in its key supplier. However, formal socialization activities within the context of the business environment did not have a significant direct impact on buyer’s innovative capabilities; but when mediated by trust, it positively impacted innovation capabilities. Informal socialization within the context of the social environment directly impacted innovation capabilities but trust did not mediate the relationship. Information sharing impacted trust and innovation significantly and trust mediated the impact of information sharing on innovation capabilities. Originality/value This study defines the formal and informal aspects of socialization and investigates its impact on trust and buyer innovation capabilities. This is one of the few studies that highlights the mediating role of trust between firms to facilitate innovation capability.

Do fellow-feelings and organisational harmony matter for logistic firms?

2018 ◽  
Vol 30 (5) ◽  
pp. 1319-1346 ◽  
Author(s):  
Jashim Khan ◽  
Gary Rivers ◽  
Sonjaya S. Gaur ◽  
Ali Quazi ◽  
Na Zuo ◽  
...  
Keyword(s):  
Market Orientation ◽  
Business Performance ◽  
Dissemination And Implementation ◽  
Service Firms ◽  
Senior Managers ◽  
Data Set ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThe purpose of this paper is to explore the mediating role of organisational harmony and fellow-feelings in the relationship between intelligence generations, dissemination and implementation on business performance and explain how market orientation impacts certain aspects of organisational behaviour which in turn lead to the performance of service firms.Design/methodology/approachThe data set comprises 108 responses of senior managers within the logistics sector. The multi-level sequential mediation path analysis is used to examine the above mediating role.FindingsResults indicate that intelligence dissemination (ID), response implementation (RI) and business performance relationship is significantly mediated via fellow-feelings and organisational harmony. However, the relationship between dissemination, implementation and overall business performance is mostly mediated by fellow-feelings and followed by organisational harmony. Furthermore, when overall market orientation (intelligence generation, dissemination and RI) is used as a determinant of business performance, organsiational harmony emerged as the most significant contributor to organsiational performance.Practical implicationsManagers are urged to focus on building fellow-feelings among their employees, resulting in a harmonious work environment between functional units and market orientation organisation wide.Originality/valueCompared to previous research, this is one of the first attempts to develop an understanding of fellow-feelings, contributing to organsiational harmony resulting market orientation and, hence, business performance. Market orientation conceptualisations lump intelligence generation, dissemination and RI of business activities together but do not explain how market orientation impacts fellow-feelings and organisational harmony which in turn leads to performance. The authors specifically address this important lacuna in our conceptualisation and propose that ID and RI lead to fellow-feelings within functional departments and results in organisational harmony.

Customer orientation and firm’s business performance

2016 ◽  
Vol 50 (12) ◽  
pp. 2162-2191 ◽  
Author(s):  
Sanja Pekovic ◽  
Sylvie Rolland
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Firm Size ◽  
Business Performance ◽  
Customer Orientation ◽  
Mediating Effect ◽  
Moderating Effects ◽  
Market Environment ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this study is to develop a better theoretical and empirical understanding of the causal and contextual mechanisms explaining the relationship between customer orientation and business performance. Design/methodology/approach A three-stage least squares model was used on a sample of 3,720 French firms with 20 or more employees. Findings By using a moderated mediation approach, it was found that the mediating effect of environmental customer innovation on the relationship between customer orientation and business performance under different contextual factors (market environment, firm size and sector of activity) can be significantly stronger or weaker. Research limitations/implications This analysis is restricted by the choice of one particular country, and further research should use data from other countries to develop a general understanding of the issues examined. Additionally, examining relevant mechanisms other than firm performance measures will advance the understanding of the customer orientation–firm performance linkage. Because of the fact that the majority of variables used are binary and that each survey was conducted in a particular situation and in a particular context, the picture portrayed could be biased. Because environmental issues not only concern consumers but also all other market actors, it would be highly useful to verify the obtained results using broader concepts such as Hult’s (2011) “market orientation plus” concept or the “sustainable market orientation” developed by Mitchell et al. (2010). Practical implications According to the results, to achieve market success and sustain a competitive advantage, managers must simultaneously invest in customer orientation and innovation performance. Additionally, managers should consider market environment, firm size and sector of activity as important contingencies in their decision of whether to invest in customer orientation. Originality/value This study makes an important contribution by opening up a “black box” and offers a deeper perspective on how and why customer orientation affects firm performance. In particular, rather than providing separate analyses of mediating and moderating effects, this study proposes a simultaneous analysis that reveals how and under what conditions customer orientation improves business performance.

Mindful consumption of second-hand clothing: the role of eWOM, attitude and consumer engagement

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jihad Mohammad ◽  
Farzana Quoquab ◽  
Nur Zulaikha Mohamed Sadom
Keyword(s):  
Indirect Effects ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Direct And Indirect Effects ◽  
Consumer Engagement ◽  
Content Type ◽  
The Relationship

PurposeThis study aims to examine the direct and indirect effects of electronic word of mouth (eWOM) on mindful consumption behaviour (MCB) in a sustainable clothing purchase context. In addition, it examines the mediating effect of “consumer engagement” and “attitude towards second-hand clothes”.Design/methodology/approachThe data were gathered through a self-administered questionnaire survey from Malaysian consumers who had experience in purchasing second-hand clothes. A total of 175 complete and useable questionnaires were obtained, which were then analysed by using the structural equation modelling-partial least square (SEM-PLS) technique.FindingsThe results of this study indicate support for the direct effect of eWOM on consumers' attitude towards second-hand clothes, consumer engagement and consumers’ MCB. The results also supported the relationship between consumer engagement and MCB, but the link between attitude and mindful consumption (MC) was not supported. Furthermore, the study confirmed the mediating effect of consumer engagement between eWOM and consumers’ MCB but did not support the mediating effect of attitude towards second-hand clothes.Originality/valueThis study is amongst the pioneers to elucidate MCB in the context of sustainable clothing. It examines the direct and indirect effects of eWOM on MCB, which has not been tested in the past literature. The mediating effects of consumer engagement and attitude towards second-hand clothes on the relationship between eWOM and MCB are also comparatively new links.

Assessing the relationship between market orientation and business performance in the hotel industry – the mediating role of service quality

2019 ◽  
Vol 23 (4) ◽  
pp. 644-663 ◽  
Author(s):  
Carlos A.F. Sampaio ◽  
José M. Hernández-Mogollón ◽  
Ricardo G. Rodrigues
Keyword(s):  
Service Quality ◽  
Market Orientation ◽  
Business Performance ◽  
Structural Model ◽  
Hotel Industry ◽  
Content Type ◽  
Mediating Role ◽  
Positive Direct ◽  
The Relationship

Purpose This study aims to explore the nature of the relationship between market orientation and business performance in the Portuguese hotel industry and to evaluate the mediating role of service quality in this relationship. Design/methodology/approach A literature analysis on market orientation, service quality and hotel business performance was conducted. The structural model was developed, and the measurement scales’ items were generated. Working data were obtained by sending a survey to Portuguese hotel managers. A purification process was conducted, and the convergent and discriminant validity, as well the reliability, of the measurement models were assessed. The structural model was tested by conducting a path analysis, as well by evaluating the coefficient of determination (R2) and the predictive relevance indicator (Q2). Findings Research results show that market orientation has a positive direct effect on business performance. Moreover, results indicate that market orientation effects on business performance are mediated throughout the hotels’ ability to provide service quality. Originality/value Despite the large amount of research on market orientation, research on the hospitality sector has been conducted mainly using tools developed for the manufacturing and consumer goods sectors. On the other hand, little has been done to explore the nature of the mediating effect of service quality on the relationship between market orientation and business performance in the hotel industry. Moreover, despite the contribution of the tourism industry to the Portuguese gross domestic product, research on the hotel industry is scarce.

Transformational leadership and organizational performance of Omani SMEs: the role of market orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khalid Abed Dahleez ◽  
Fadi Abdelmuniem Abdelfattah
Keyword(s):  
Transformational Leadership ◽  
Organizational Performance ◽  
Market Orientation ◽  
Business Performance ◽  
Theory And Practice ◽  
Equation Modeling ◽  
Content Type ◽  
Positive Direct ◽  
The Relationship

PurposeThis study proposed and tested a model on the relationship between transformational leadership (TL) and organizational performance (OP) with a possible intervening effect of market orientation (MO) at Omani small and medium enterprises (SMEs).Design/methodology/approachThe study followed a quantitative research design and the deductive approach. Data were collected from 259 employees working in Omani SMEs and were analyzed using structural equation modeling SEM AMOS V24.FindingsThe findings supported positive direct effects of transformational leadership on Omani SMEs' business performance and market orientation. The results also supported the effect of market orientation on business performance. Further analysis showed that market orientation partly mediates the relationship between transformational leadership and business performance.Practical implicationsThe results motivate Omani SMEs' leaders to use intangible capabilities (i.e., market orientation practices) to improve the different aspects of organizational performance. It also suggests that developing SMEs leaders' transformational skills on envisioning the future, adopting open communication styles, motivating employees and stimulating their creativity influences Omani SMEs' performance.Originality/valueDue to the mixed results regarding the TL–OP relationship and the recommendations for further exploring this relationship, this study contributes to theory and practice. It is among the few studies to explore the mediating role of MO between TL and OP in a developing country's SMEs environment.

“I buy green products, do you…?”

2019 ◽  
Vol 14 (1) ◽  
pp. 89-112 ◽  
Author(s):  
Azila Jaini ◽  
Farzana Quoquab ◽  
Jihad Mohammad ◽  
Nazimah Hussin
Keyword(s):  
Well Being ◽  
Partial Least Square ◽  
Mediating Effect ◽  
Purchase Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Hedonic Value ◽  
Personal Norm ◽  
The Relationship

Purpose In recent years, consumers are moving toward purchasing green cosmetics instead of chemical one. Plenty of cosmetics products are banned globally due to the usage of poisonous substances such as triphenyl phosphate and petroleum. As such, it is needed to shift the conventional purchase behavior to green purchase behavior (GPB) to reduce the negative impact on the environment and health. This study aims to investigate the factors that affect GPB in the context of cosmetics products purchase. Additionally, this study examines the moderating role of electronic word-of-mouth (eWOM) in influencing such green behavior. Design/methodology/approach This study used value-belief-norm (VBN) theory and elaboration likelihood model as a theoretical basis. By using judgmental sampling techniques, a total of 318 usable responses were gathered through online survey. The structural equation modeling approach using partial least square (SmartPLS, version 3.7) technique was used to test the study hypotheses. Findings Results reveal that altruistic value and hedonic value both positively affect pro-environmental beliefs, which eventually affect consumers’ personal norms. It is found that hedonic value has a greater influence on pro-environmental belief than altruistic value. Additionally, personal norm also exerts significant influence on GPB. Data also support the mediating role of pro-environmental belief and personal norm. Moreover, the multidimensional eWOM moderates the relationship between personal norm and GPB. Practical implications The findings from this study provide valuable insights for marketers, academicians and practitioners about the drivers of consumers’ green cosmetics purchase behavior. It will enable marketers to develop better strategies for the green market segment. Social implications The study findings also contribute to the social aspects by understanding consumers’ purchase behavior toward green cosmetics products. It ultimately promotes to consider a healthier lifestyle and to be concerned about environmental well-being. Originality/value This study is the first to introduce the eWOM as a moderator in the VBN theory. Moreover, this study contributes to the existing body of knowledge in the field by examining few new linkages; more specifically, considering pro-environmental belief as to the mediator between “hedonic value and personal norm,” as well as the mediating effect of personal norm in the relationship between “pro-environmental belief and GPB.” Moreover, this is a pioneer study to consider eWOM as a multidimensional construct rather than unidimensional, which is new in green marketing literature.

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