Market orientation and service quality: opponents or colleagues

2014 ◽  
Vol 6 (2/3) ◽  
pp. 98-111 ◽  
Author(s):  
Angelos Pantouvakis
Keyword(s):  
Service Quality ◽  
Empirical Evidence ◽  
Market Orientation ◽  
Business Performance ◽  
Design Methodology ◽  
Combined Effects ◽  
Present Survey ◽  
Content Type ◽  
Marketing Orientation

Purpose – This paper aims to investigate the effects of market orientation (MO) and service quality (SQ) logic on business performance. It is generally believed that MO and SQ are different philosophies, as the first, mainly, focuses on the “external orientation or market based considerations”, whereas the second mainly falls into the “internal orientation or resource based” of the firm. However, very little empirical evidence is provided to examine their relationships and comment on their role in achieving superior business performance. Design/methodology/approach – Drawing evidence from 400 shipping firms, this study examines the role of these two concepts (MO and SQ) on shipping companies’ business performance and attempts to classify cases according to their score on those constructs. Findings – Analysis revealed that despite what was thought by most managers inside and outside the maritime sector, all shipping firms are strongly market-oriented and that SQ and business performance are closely related to each other. Originality/value – The present survey, using a sample of 700 maritime professionals from some 400 shipping companies in Greece, aimed at exploring the combined effects of marketing orientation and quality on their performance. It further discriminates among three types (states) of companies based on their MO and SQ scores.

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.

scholarly journals Can compensation committees effectively mitigate the CEO horizon problem? The role of co-opted directors

2020 ◽  
Vol 34 (1) ◽  
pp. 1-21
Author(s):  
Ruonan Liu
Keyword(s):  
Corporate Governance ◽  
Research And Development ◽  
Empirical Evidence ◽  
Design Methodology ◽  
Ceo Compensation ◽  
Content Type ◽  
Horizon Problem ◽  
Accruals Management ◽  
Compensation Committees

Purpose This study aims to examine whether compensation committees dominated by co-opted directors are less effective in mitigating the CEO horizon problem. Design/methodology/approach The author uses a sample of 7,280 firm-year observations from 1998 to 2011. Findings In this study, the author finds evidence of opportunistic research and development (R&D) reduction and accruals management in firms with retiring CEOs and compensation committees dominated by co-opted directors. Moreover, it is found that R&D reduction and income-increasing accruals are less discouraged when determining the compensation for retiring CEOs by compensation committees that are dominated by co-opted directors. The results suggest that compensation committees dominated by co-opted directors are less effective in adjusting CEO compensation to mitigate the CEO horizon problem. Originality/value The study reveals that co-opted directors are weak monitors. Moreover, the study adds empirical evidence to the debate of organizations’ CEO horizon problem. Finally, the study adds to the literature on corporate governance, revealing that compensation committees play an important role in mitigating an organization’s CEO horizon problem by adjusting CEO compensation.

Exploring market orientation among Chinese small and medium-sized enterprises

2017 ◽  
Vol 11 (4) ◽  
pp. 617-636 ◽  
Author(s):  
Long Zhang ◽  
Ali Kara ◽  
John E. Spillan ◽  
Alma Mintu-Wimsatt
Keyword(s):  
Market Orientation ◽  
Business Performance ◽  
Large Scale ◽  
Empirical Support ◽  
Three Dimensions ◽  
Orientation Measurement ◽  
Content Type ◽  
Geographic Concentration ◽  
Marketing Orientation ◽  
Business Function

Purpose The role of marketing as a business function is rapidly changing in China. Consequently, their views on marketing orientation – whether it is accepted, rejected, modified or reframed – have been seriously impacted. This paper aims to report on the results of a survey among Chinese small- and medium-sized enterprise (SME) managers and their perceptions of the market-orientation philosophy. In particular, emphasis was placed on three dimensions of market orientation: intelligence generation, intelligence dissemination and responsiveness. The effect of market orientation on business performance was also examined. Design/methodology/approach The authors collected data from 214 managers from SMEs. These businesses were located in the cities of Beijing, Shanghai and Shenzhen. The commonly used market orientation (MARKOR) measure was used to test the hypotheses. Findings Consistent with the extant literature, the findings provided empirical support for the three dimensions of market orientation among Chinese SME. The authors also found that a positive relationship existed between Chinese SME market orientation and firm performance. Research limitations/implications This study provides major insights into the market orientation measurement and practices of SME in China. From a measurement perspective, the empirical support for MARKOR across a non-Western context is noteworthy. From a practitioner perspective, the implications relating to understanding Chinese SME and how these companies can best market their products and services to their respective markets are critical. Some of the limitations of our study relates to the sample size, convenience sampling and geographic concentration of the respondents. Originality/value This study addresses the gaps in the literature by exploring market orientation in non-large scale businesses as well as the adaptation of the concept in a non-Western cultural setting. The findings extend the conceptualization and application of market orientation to Chinese SME.

Human capital readiness and global market orientation in Indonesian Micro-, Small- and-Medium-sized Enterprises business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bambang Tjahjadi ◽  
Noorlailie Soewarno ◽  
Viviani Nadyaningrum ◽  
Aisyah Aminy
Keyword(s):  
Human Capital ◽  
Market Orientation ◽  
Business Performance ◽  
Global Market ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Marketing Orientation

PurposeThis study aims to investigate whether human capital readiness affects business performance, and if so, whether the effect is mediated by global market orientation.Design/methodology/approachThis is a quantitative study employing partial least square structural equation modeling (PLS-SEM) to test the hypotheses. Using a survey method, the data were collected using both online and offline questionnaires. As many as 433 owners/managers of micro-, small- and-medium-sized enterprises (MSMEs) in the East Java Province of Indonesia participated in this study. A mediating research framework was developed to investigate the mediating role of global marketing orientation on the human capital readiness–business performance relationship.FindingsThe results show that human capital readiness has a direct and positive effect on business performance. Further analysis reveals that global market orientation partially mediates the effect of human capital readiness on business performance.Research limitations/implicationsFirst, this study focuses on the MSMEs in the East Java Province of Indonesia. Caution needs to be taken if the results are generalized to other regions. Second, it employed a survey method that is commonly criticized as having the potential to be biased.Practical implicationsThe findings provide a more comprehensive understanding of owners/managers of human capital readiness and how it should be improved to better execute global market orientation strategies to achieve the desired business performance.Social implicationsBecause MSMEs play a crucial role in society, this study provides a general model to improve the welfare of society by enhancing the MSMEs' business performance. By understanding its antecedents, namely, human capital readiness and the global market orientation, improvements can be made.Originality/valueHuman capital readiness has been rarely examined in previous studies. This is the only study applying the constructs of human capital readiness, global market orientation and business performance to the Indonesian MSME research setting.

Soldier or actor?

2019 ◽  
Vol 27 (1) ◽  
pp. 94-108
Author(s):  
Amit Shukla
Keyword(s):  
Empirical Evidence ◽  
Design Methodology ◽  
Positive Relationship ◽  
Psychological Ownership ◽  
Matched Sample ◽  
Content Type ◽  
Workplace Fairness ◽  
Strong Positive Relationship

Purpose Though widely studied, organisational citizenship behaviour (OCB) is yet to emerge as a thoroughly understood concept. For instance, citizenship behaviours emanating from self-serving motives remain largely unexplored. The purpose of this study is to investigate the role of psychological ownership in differentiating individuals with genuine motives (“soldiers”) from those with self-serving motives (“actors”). Design/methodology/approach The study defines and operationalises genuineness of OCBs by comparing self-rated and others-rated citizenship behaviours. It is hypothesised that psychological ownership is positively associated with citizenship behaviour, and this relationship is positively moderated by degree of genuineness. All the hypothesised relationships are tested on the basis of empirical evidence produced by a two-wave study on a cross-hierarchical matched sample (n = 338) in a large Indian IT MNC. Findings A strong positive relationship between psychological ownership and citizenship behaviour was observed. A positive moderation by genuineness was also found suggesting that relationship between psychological ownership and citizenship behaviour became stronger with higher genuineness. In a nutshell, the results indicated that soldiers and actors could be differentiated on the basis of their relative scores on psychological ownership. Originality/value Apart from theoretical contributions, the present study offers a headway to managers in identifying employees who engage in citizenship behaviour out of genuine motives toward their organisation. As citizenship behaviours increasingly find prominence in employees’ self-appraisal, this differentiation assumes importance in promoting workplace fairness.

scholarly journals The role of marketing in today's enterprises

2014 ◽  
Vol 25 (2) ◽  
pp. 171-194 ◽  
Author(s):  
Jochen Wirtz ◽  
Sven Tuzovic ◽  
Volker G. Kuppelwieser
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Design Methodology ◽  
Low Cost ◽  
Structural Models ◽  
The West ◽  
Marketing Department ◽  
Content Type ◽  
The Usa

Purpose – The purpose of this paper is to explore the role of marketing in today's enterprises and examines the antecedents of the marketing department's influence and its relationship with market orientation and firm performance. Design/methodology/approach – Data were collected from the West (i.e. the USA and Europe) and the East (i.e. Asia). Partial least squares (PLS) was used to estimate structural models. Findings – The findings support the idea that a strong and influential marketing department contributes positively to firm performance. This finding holds for Western and Asian, and for small/medium and large firms alike. Second, the marketing department's influence in a firm depends more on its responsibilities and resources, and less on internal contingency factors (i.e. a firm's competitive strategy or institutional attributes). Third, a marketing department's influence in the West affects firm performance both directly and indirectly (via market orientation). In contrast, this relationship is fully mediated among Eastern firms. Fourth, low-cost strategies enhance the influence of a firm's marketing department in the East, but not in the West. Research limitations/implications – The paper assumes explicitly that a marketing department's influence is an antecedent of its market orientation. While the paper finds support for this link, the paper did not test for dual causality between the constructs. Originality/value – Countering the frequent claim in anecdotal and journalistic work that the role of the marketing department diminishes, the findings show that across different geographic regions and firm sizes, strong marketing departments improve firm performance (especially in the marketing-savvy West), and that they should continue to play an important role in firms.

Marketing orientation, strategic orientation and their synergistic impact on business performance

2016 ◽  
Vol 18 (1) ◽  
pp. 27-52 ◽  
Author(s):  
Hardeep Chahal ◽  
R.C. Dangwal ◽  
Swati Raina
Keyword(s):  
Business Performance ◽  
Service Sector ◽  
Positive Impact ◽  
Strategic Orientation ◽  
North India ◽  
Strong Impact ◽  
Integrated Marketing ◽  
Content Type ◽  
Marketing Orientation

Purpose The main purpose of this study is to examine the synergistic impact of marketing orientation (MO) and strategic orientation (SO) on business performance (BP) and to explore role of entrepreneurial qualification (moderating) and SO (mediating) in MO and BP relationship. Design/methodology/approach Nine hundred small and medium-sized enterprises (SMEs) owners/managers operating in Jammu District, North India, are contacted during October 2013 to February 2014. Findings The study identifies and confirms MO (marketing strategy, customer philosophy, operational efficiency and integrated marketing) and SO (defensive, proactive, analytical and risk-averse) as multi-dimensional constructs. Although both orientations have positive impact on SMEs performance, however, their synergistic impact is weak. In addition, the study also reveals that MO has direct and indirect impact (through SO) on BP. Lastly, there exists moderating role of entrepreneurial qualification between MO and SO. Research limitations/implications The major limitation of the study is the focus on SMEs. Based on the strength of the relationships among the dimensions and sub-dimensions of the MO, SO and BP, replication and validation of research in service sector across the country and globe is required to generalise the results and to develop stronger theory. Originality/value This is the first empirical study to investigate the synergistic impact of two well-established notions – MO and SO. It provides empirical evidence for the claim that synergistic impact of marketing and SO on BP is weak, unlike their respective strong impact on BP. This study also clarifies roles of entrepreneurial qualification and SO in MO and BP relationship.

Two routes of service modularization: advancing standardization and customization

2019 ◽  
Vol 33 (1) ◽  
pp. 73-87 ◽  
Author(s):  
Ida Gremyr ◽  
Aku Valtakoski ◽  
Lars Witell
Keyword(s):  
Empirical Evidence ◽  
Design Methodology ◽  
Longitudinal Case Study ◽  
Manufacturing Firm ◽  
Content Type ◽  
Service Module ◽  
Using Data ◽  
Practical Implications

Purpose This study aims to investigate service modularization in a manufacturing firm, identifies service modularization processes and examines how these processes change the service module characteristics. Design/methodology/approach The study is based on a longitudinal case study (2008-2017) of a manufacturing firm. The development of six service modules was analyzed using data from interviews with key informants, informal meetings and internal documentation. Findings This study suggests five service modularization processes, and that service module characteristics, such as standardization and interconnectedness, change in different ways depending on the service modularization processes used. It further identifies two service modularization routes that each combine the service modularization processes in unique ways with replication as a key process to improve both standardization and customization. Practical implications This study elaborates a framework for service modularization, which can serve as a guideline for developing service modules. It also highlights the differences between product and service modularization, suggesting that the role of service module characteristics such as standardization and customization is specific for services. Originality/value This longitudinal case study (2008-2017) provides empirical evidence on service modularization and extends existing knowledge on service modularization processes and how they influence service module characteristics.

Examining the impact of market orientation on service quality in shipping companies: the role of risk propensity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Angelos Pantouvakis ◽  
Maria Karakasnaki
Keyword(s):  
Service Quality ◽  
Market Orientation ◽  
Risk Propensity ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
The Impact ◽  
First Time ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this study is to investigate the relationship between market orientation and service quality in the context of shipping companies. Moreover, this study aims to explore the moderating role of risk propensity in the above-mentioned relationship. Design/methodology/approach A research study was carried out on a sample of 255 shipping companies located in Greece. Data were obtained through a structured questionnaire from the managing directors or other senior executives. Data were analyzed through exploratory and confirmatory factor analyses, while the hypothesized relationships were determined through regression analyzes. Findings The analysis of the empirical data shows that intelligence generation and responsiveness have a positive and significant impact on the service quality of shipping companies. Also, the findings showed that this relationship is influenced by the degree of risk propensity, revealing, thus its moderating role on the market orientation – service quality link. Originality/value The current study contributes to the literature by examining for the first time the moderating role of risk propensity in the relationship between market orientation and service quality. Additionally, this is the first study that attempts to investigate the way the dimensions of market orientation predict service quality in the context of shipping companies.

The value of guarantee in service e-commerce

2015 ◽  
Vol 6 (1) ◽  
pp. 82-102 ◽  
Author(s):  
Haichao Zheng ◽  
Jui-Long Hung ◽  
Zhangxi Lin ◽  
Jing Wu
Keyword(s):  
Service Quality ◽  
Business Performance ◽  
Design Methodology ◽  
Service Providers ◽  
The Internet ◽  
Content Type ◽  
Face To Face ◽  
Service Guarantee ◽  
Effective Choice ◽  
Practical Implications

Purpose – The purpose of this paper is investigating the value of service guarantee (SG) program in Service e-Commerce (SeC) which is one resolution to promote service transactions. SeC is emerging as a booming form of e-commerce where various services are contracted, managed, sold and even delivered via the Internet. However, the uncertainty of service quality and the heterogeneity of buyer preferences have been major challenges to sustainable development of SeC. Design/methodology/approach – This study uncovered the value of SG in SeC by empirically analyzing the data collected from zhubajie.com, a well-known service e-marketplace in China, to classify the service providers, to indentify the predictors for SG subscription and to study the effects of SG on service providers’ business performance and service quality. Findings – The authors found that the distribution of service provisions is diversified in terms of low-success, mid-success and high-success providers, while proactive or high ability-ranking providers consistently tend to subscribe to SG program. The study revealed that SG has diverse effects on business performance for low-success and mid-success providers. For high-success providers, it seems to not be an effective choice for transaction promotion. Finally, the results showed that SG marginally improved service quality. Practical implications – This research provides some practical implications for SeC markets to improve SG program. In addition, the results also help service providers to understand the value of SG in depth. Originality/value – This article extended the research of SG from the traditional offline market to the online market, as with SeC, in which transactions are conducted without face to face contact.

Sign in / Sign up

Export Citation Format

Share Document