The influence of market orientation on innovation strategies

Purpose – The purpose of this paper is to examine the effects of market orientation on exploratory and exploitative innovation, and the moderating effects of family ownership on these relationships. Design/methodology/approach – This study utilizes multi-group path analysis and confirmatory factor analysis in LISREL on data from 228 firms in the Australian service sector. Findings – This study establishes that both customer and competitor innovation are positively related to exploitative and exploratory innovation. However, customer orientation does not lead to significantly stronger effects on exploitative innovation than on exploratory innovation, and competitor orientation does not lead to significantly stronger effects on exploratory innovation than on exploitative innovation. In addition, the study found that the relationship between customer orientation and exploratory innovation was stronger for family firms, while the relationships between competitor orientation and both exploratory and exploitative innovation were stronger for non-family firms. Research limitations/implications – The cross-sectional design is one weakness of this study. In addition, as firms in the present study came from the service sector the generalizability of the findings to other sectors of the economy need to be determined. Practical implications – These findings of this study highlight the need for managers to build a strong market orientation in order to promote innovation, and consider the effects of ownership structure on innovation strategies. Originality/value – This study is the first to measure the relative influence of customer and competitor orientation on a firm’s use of exploitative and exploratory innovation strategies.

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Role of market orientation in sustainable performance

Humanomics ◽

10.1108/h-03-2016-0028 ◽

2016 ◽

Vol 32 (3) ◽

pp. 352-375 ◽

Cited By ~ 2

Author(s):

Soheil Kazemian ◽

Rashidah Abdul Rahman ◽

Zuraidah Mohd Sanusi ◽

Abideen A. Adewale

Keyword(s):

Market Orientation ◽

Structural Equation ◽

Customer Orientation ◽

Partial Least Square ◽

Least Square ◽

Three Dimensions ◽

Equation Modeling ◽

Future Research ◽

Content Type ◽

Competitor Orientation

Purpose Without prejudice to the efficacy of other poverty alleviation mechanisms, micro-financing arguably enjoys relative prominence. However, notwithstanding the remarkable loan repayment rate that the microfinance firms report, they still face the challenge of sustainability. The paper aims to provide insights into how three dimensions of market orientation, namely, customer orientation, competitor orientation and inter-function coordination, affect the two aspects of the sustainability of microfinance institutions (MFIs; management and financial). Design/methodology/approach To achieve this goal, this study focuses on Amanah Ikhtiar Malaysia (AIM), a leading microfinance provider which is also the largest MFI in South East Asia. Data elicited via a survey questionnaire administered on 190 management staff of AIM across Malaysia are subjected to statistical analysis via the partial least square-structural equation modeling using SmartPLS 2.0. Findings The results provide empirical evidences that indicate that management sustainability is significantly influenced by customer orientation and inter-function coordination. However, only customer orientation affects the financial sustainability of AIM. Nevertheless, competitor orientation has non-significant effects on both aspects of sustainability of AIM. Research limitations/implications The result of the paper contributes to the literature in understanding the long-term sustainable financial and social performance-based market orientation. Originality/value Findings are useful for policy makers, management of MFIs, practitioners and academics to enhance microfinance system. Managerial implications, limitation of the study and suggestions for future research are also included.

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Accountability via social and financial performance of the hospitality sector: the role of market orientation

Society and Business Review ◽

10.1108/sbr-04-2020-0061 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Soheil Kazemian ◽

Hadrian Geri Djajadikerta ◽

Saiydi Mat Roni ◽

Terri Trireksani ◽

Zuraidah Mohd-Sanusi

Keyword(s):

Financial Performance ◽

Market Orientation ◽

Customer Orientation ◽

Social Performance ◽

Three Dimensions ◽

Content Type ◽

Top Managers ◽

The Social ◽

Competitor Orientation ◽

Hospitality Sector

Purpose This study aims to examine the three dimensions of market orientation, namely, customer orientation, competitor orientation and inter-function coordination, which influence the accountability in the financial and social performance of tourism operators in large touristic cities. Design/methodology/approach In total, 95 usable questionnaires as the required data were collected from the top managers of four- and five-star hotels in Iran. Findings Partial least squares (PLS) results confirm that customer orientation and inter-function coordination influence both the financial and social performance of the hospitality sector yet reveal that competitor orientation has no significant relationship with social performance. Research limitations/implications These findings not only highlight the compatibility of PLS with various forms of statistical analyzes but also furthers the current understanding of hospitality networks in megacity economies, where literature are scarce. Practical implications The findings of this study can help policymakers, tourism associations and practitioners enhance the accountability and sustainable financial and social performance of the hospitality industry in megacities. This study proposes some unique measurements for the social and financial performance of the hospitality sectors. Originality/value The paper states some new measurements for the social performance of the hospitality sectors. In addition, measuring the impacts of market orientation on the financial and social aspects of hotels is totally unique.

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Testing the Applicability of Narver and Slater’s Market Orientation Concept and Firm Performance in Botswana Companies

Journal of Business Theory and Practice ◽

10.22158/jbtp.v2n1p1 ◽

2014 ◽

Vol 2 (1) ◽

pp. 1 ◽

Cited By ~ 1

Author(s):

Olumide Jaiyeoba ◽

Donatus Amanze

Keyword(s):

Firm Performance ◽

Market Orientation ◽

Questionnaire Survey ◽

Business Performance ◽

Customer Orientation ◽

Cross Sectional ◽

Symmetric Component ◽

Sample Data ◽

Result Show ◽

Competitor Orientation

In existing Market orientation research, the components of the market orientation construct are generally theorized to follow the conceptualizations of either Kholi and Jaworski (1990) or Narver and Slater (1990). This study looks into the nature of the correlational relationship between market orientation and firm performance using sample data from firms in Botswana. How Narver and Slater’s scale for measuring the extent of market orientation is investigated, tested, and used for Botswana Context. Two symmetric component measures of market orientation (customer orientation and Competitor orientation) are developed, tested in a cross-sectional questionnaire survey. Result show a positive correlation between market orientation and business performance, and Narver and Slater’s scale was discovered to be better suited for Botswana context, when focusing on the symmetric component measures of customer orientation and competitor orientation. Academicians are thus provided with insights with respect to the content and symmetry of component measures of market orientation construct and their relation to Botswana’s firm Performance.

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Market orientation heterogeneity and new joint venture formation announcements: creating value for parent firms

Journal of Strategy and Management ◽

10.1108/jsma-11-2019-0196 ◽

2020 ◽

Vol 13 (3) ◽

pp. 433-451

Author(s):

Vivien E. Jancenelle ◽

Shuqin Wei ◽

Tyson Ang

Keyword(s):

Market Orientation ◽

Joint Venture ◽

Customer Orientation ◽

Annual Reports ◽

Computer Assisted ◽

Content Type ◽

Competitor Orientation ◽

Study Methodology ◽

Positive Effect

PurposeJoint ventures (JVs) are known to create value for their parent firms, in part due to the mutually beneficial sharing of information that occurs at the JV level. Market orientation (MO) is a well-documented strategic orientation that has received little attention in the JV literature, despite considerable research suggesting that MO has a positive effect on performance. This study posits that the MO skills contributed to a new JV by parent firms are likely to play a central role in a shareholder's assessment of the potential for success of a newly announced JV, thereby triggering changes in market value for parent firms.Design/methodology/approachComputer-Assisted-Text-Analysis (CATA) is used to calculate MO heterogeneity from annual reports, and event-study methodology is used to assess parent firm performance. The authors rely on a US sample of 82 public JV parents involved in 41 new equally-weighted JV formation announcements.FindingsThe authors find that heterogeneity on MO's behavioral components (customer orientation, competitor orientation, and coordination) is negatively related to parent performance, while heterogeneity on MO's profitability component is positively related to parent performance. However, the effect of MO's long-term focus heterogeneity on parent performance was not supported.Originality/valueThe results suggest that the benefits of information sharing in partnerships may be of a nuanced nature when it comes to MO. Although heterogeneity in profitability inclination created value for parent firms announcing a new JV; heterogeneity in customer, competitor and coordination market orientations did not appear to be rewarded by shareholders.

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Linking interactional injustice to EVLN outcomes

International Journal of Organizational Analysis ◽

10.1108/ijoa-03-2019-1693 ◽

2019 ◽

Vol 28 (2) ◽

pp. 488-506 ◽

Cited By ~ 2

Author(s):

Arpana Rai ◽

Upasna A. Agarwal

Keyword(s):

Indirect Effect ◽

Psychological Contract ◽

Service Sector ◽

Moderated Mediation ◽

Full Time ◽

Cross Sectional ◽

Content Type ◽

Mediating Role ◽

Moderated Mediation Model ◽

Cross Sectional Design

Purpose The study aims to examine a moderated mediation model of effects of conscientiousness on the mediating role of psychological contract violation (PCV) on interactional injustice and employees EVLN (exit, voice, loyalty and neglect) outcomes relationships. Design/methodology/approach A sample of 422 full-time managerial employees working across different service sector-based Indian organizations was used to test the proposed moderated mediation. The analysis was performed using Hayes’ Process Macro. Findings Results revealed that (i) the effect of interactional injustice on employee EVLN outcomes is mediated through PCV and (ii) the strength of this indirect effect is dependent on individual differences in conscientiousness. As such, the overall pattern of relationships supported moderated mediation, in that, the indirect effect of interactional injustice on voice and loyalty through PCV was stronger for employees high (as compared with those low) in conscientiousness. Research limitations/implications A cross-sectional design and use of self-reported questionnaire data in the sample are a few limitations of the study. Originality/value This study advances the existing literature on interactional injustice by extending its range of outcomes as well as by examining the underlying and intervening conditions in the interactional injustice-outcomes relationship.

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How manufacturer market orientation influences B2B customer satisfaction and retention: empirical investigation of the three market orientation components

Journal of Business and Industrial Marketing ◽

10.1108/jbim-03-2012-0042 ◽

2015 ◽

Vol 30 (2) ◽

pp. 182-193 ◽

Cited By ~ 18

Author(s):

Chiquan Guo ◽

Yong Wang

Keyword(s):

Customer Satisfaction ◽

Market Orientation ◽

Customer Relationship Management ◽

Customer Orientation ◽

Relationship Management ◽

Customer Retention ◽

Customer Relationship ◽

Content Type ◽

Relationship Outcomes ◽

Competitor Orientation

Purpose – This paper aims to examine how the three market orientation components (customer orientation, competitor orientation and interfunctional coordination) influence industrial manufacturers’ customer relationship management outcomes in a business-to-business (B2B) context. Design/methodology/approach – In linking market orientation components and their relationship outcomes, the authors examined the moderating effect of interfunctional coordination. The model was tested using data collected from 279 manufacturing firms in the USA. Findings – While customer orientation and competitor orientation both influence customer relationship outcomes, interfunctional coordination does not. However, interfunctional coordination lessens the positive relationships between customer orientation and customer retention as well as between competitor orientation and customer satisfaction. Although competitor orientation has a slightly stronger impact on customer satisfaction than customer orientation does, it only has an indirect relationship with customer retention through customer satisfaction. Originality/value – The findings illustrated the effects of the three components of market orientation on customer relationship outcomes within manufacturing-centered firms, and provided managerial implications to industrial manufacturers on market orientation implementation strategies in regard to successful B2B customer relationship management.

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Market orientation and capacity for change in higher education performance in Indonesia

Journal of Asia Business Studies ◽

10.1108/jabs-01-2020-0021 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Badri Munir Sukoco ◽

Zuyyinna Choirunnisa ◽

Mohammad Fakhruddin Mudzakkir ◽

Reza Ashari Nasution ◽

Ely Susanto ◽

...

Keyword(s):

Market Orientation ◽

Learning Process ◽

Customer Orientation ◽

Three Dimensions ◽

Organisational Performance ◽

Content Type ◽

Competitor Orientation ◽

Education Performance ◽

The Impact ◽

Capacity For Change

Purpose Changes are inevitable and organisations should develop their organisational capacity for change (OCC) to survive. This paper aims to test the effect of market orientation on OCC (learning, process and context), as well as the impact of OCC on organisational performance. Design/methodology/approach This research used a survey of 314 heads of study programmes in Indonesia’s highest-ranked universities to test the proposed hypotheses. Findings The results of this research demonstrate that OCC is determined by customer orientation and cross-functional coordination (market orientation), while competitor orientation influences the learning dimension of OCC. Moreover, only the context dimension of OCC positively influences organisational performance in addition to serving as a mediator between market orientation (customer orientation and cross-functional coordination) and organisational performance, whereas competitor orientation positively influences organisational performance. Originality/value This paper empirically tested the three dimensions of OCC (learning, process and context) that had previously been discussed only conceptually. Furthermore, the organisation should be market-oriented to possess the capacity for change. Finally, the paper proposes and demonstrates that organisational context (culture) plays a significant role in OCC in developing organisational performance.

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Market orientation, performance and the mediating role of innovation in Indonesian SMEs

Asia Pacific Journal of Marketing and Logistics ◽

10.1108/apjml-08-2021-0624 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Clare D'souza ◽

Marthin Nanere ◽

Malliga Marimuthu ◽

Mokhamad Arwani ◽

Ninh Nguyen

Keyword(s):

Firm Performance ◽

Market Orientation ◽

Structural Equation ◽

Customer Orientation ◽

Point Of View ◽

Theoretical Point ◽

Content Type ◽

Mediating Role ◽

Competitor Orientation

PurposeDespite the theoretical advancements of market orientation and firm performance, there is a paucity of research regarding SMEs in Indonesia. Customer and competitor orientation were examined as two distinct constructs as per the literature, as it has been questioned for its robustness. They have been used synonymously, even though customer orientation is operationalised as a component of a market orientation construct. There is support for the argument from a theoretical point of view to keep customer orientation and competitor orientation separate. The objective of this research was to empirically test market orientation concepts on firm performance and assessing customer and competitor orientation separately. Furthermore, it also tests whether innovation plays a mediating role.Design/methodology/approachA sample of 309 small and medium-sized firms was found eligible for this study. Structural Equation Modelling was used to analyze the data. A multi-industry sample of firms was used to strengthen the generalisability of the results. The sample was acquired from two databases of SMEs directory in Kudus and Pati, East Java Indonesia, participants were randomly selected.FindingsThe findings show that innovation mediates the relationship between competitor orientation and firm performance, while competitor orientation had no significant relationship with firm performance. Customer orientation was found to positively influence firm performance.Originality/valueThe role of innovation as a mediator within SMEs in a developing country opens up avenues for further research among other developing countries. By examining both the concepts of customer and competitor orientation separately and establishing relationships, we validate support for this argument both from a methodological and theoretical point of view.

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Measuring level of market orientation for an Islamic microfinance institution case study of Amanah Ikhtiar Malaysia (AIM)

Qualitative Research in Financial Markets ◽

10.1108/qrfm-08-2013-0026 ◽

2014 ◽

Vol 6 (3) ◽

pp. 258-277 ◽

Cited By ~ 1

Author(s):

Soheil Kazemian ◽

Rashidah Abdul Rahman ◽

Zuraeda Ibrahim

Keyword(s):

Market Orientation ◽

Customer Orientation ◽

Point Of View ◽

Middle Level ◽

Content Type ◽

Medium Level ◽

Competitor Orientation ◽

Microfinance Institution ◽

Definition Of ◽

High Level

Design/methodology/approach – This study aims to evaluate the current practices conducted based on in-depth interviews with 16 Amanah Ikhtiar Malaysia (AIM) medium-level managers who were selected randomly, including branch managers and operational officers. All of the interviewees have two characteristics; they face customers directly and influence their decision-making. Findings – Based on the findings of this study, AIM has a high level of customer orientation and inter-function coordination and a middle level in competitor orientation. Originality/value – This paper initially presents the definition of a unique concept, namely, Islamic market orientation, which is defined based on the incorporation of Islamic concepts and market orientation by discussing the characteristics of Islamic market-oriented organisations. Then, an empirical discussion for evaluating market orientation in a microfinance provider is presented. The paper uses the synthesis of different real positions for developing discussions on whether AIM is following market orientation strategies, and, if so, at which level it is located from each dimension’s point of view.

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Can do and reason to: when are proactive employees willing to share negative information?

International Journal of Organizational Analysis ◽

10.1108/ijoa-02-2021-2616 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Laura E. Marler ◽

Susie S. Cox ◽

Marcia J. Simmering ◽

Bryan L. Rogers ◽

Curtis F. Matherne

Keyword(s):

Online Survey ◽

Negative Information ◽

Proactive Personality ◽

Interactive Effects ◽

Personality Factors ◽

Cross Sectional ◽

Content Type ◽

Motivational States ◽

Final Sample ◽

Cross Sectional Design

Purpose Information sharing is vital to organizational operations, yet employees are often reluctant to share negative information. This paper aims to gain insight into which employees will be reluctant to share negative information and when by drawing from the proactive motivation literature examining effects of proactive personality and motivational states on individuals’ willingness to share negative information. Design/methodology/approach A cross-sectional design was used, with data collected from a final sample of 393 individuals via an online survey. Hypotheses were tested using correlation and hierarchical multiple regression analyses. Findings Interactive effects indicate proactive individuals with accompanying high levels of role breadth self-efficacy (“can do”) or high levels of felt responsibility for constructive change (“reason to”) were less likely to be reluctant to share negative information. However, findings also suggest proactive individuals with lower levels of proactive motivation avoid sharing negative information. Originality/value The findings extend what is known about personality factors and employee willingness to share information to highlight which employees may be likely to avoid sharing negative information. The authors also examine the moderating influence of proactive motivational states on the relationships between proactive personality and reluctance to share negative information.

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