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

2014 ◽  
Vol 6 (3) ◽  
pp. 258-277 ◽  
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.

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

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.

Role of market orientation in sustainable performance

Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 352-375 ◽  
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.

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

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.

scholarly journals Market Orientation and Customer Point of View - In The Case Of Azerbaijan

2018 ◽  
Vol 5 (6) ◽  
pp. 58
Author(s):  
Shahin AKBAROV
Keyword(s):  
Market Orientation ◽  
Customer Orientation ◽  
Western Country ◽  
Point Of View ◽  
Convenience Sample ◽  
Confirmatory Factor ◽  
Competitor Orientation ◽  
Marketing Activities ◽  
Customer Trust ◽  
Orientation Phenomenon

<p><strong>Purpose:</strong> The research aimed to  investigate  how  consumers  percept  marketing activities of firms in Azerbaijan, within  the framework of market orientation phenomenon described by Narver and Slater.</p><p> <strong>Methodology:</strong> 333 questionnaires were gained through convenience sample. Data was analyzed with SPSS 24. Confirmatory factor analysis was first done and then regression analysis.</p><p> <strong>Findings</strong>: According to the results of research, items relate to MKTOR assembled into two <strong>factors:</strong> customer orientation and competitor orientation. Only customer orientation have  significant  positive  effect  on  customer  satisfaction  and  customer  trust.</p><p> <strong>Originality</strong>: The study is important because it is carried out in Azerbaijan, a country which is new in market economy. Although marketing concept is not new phenomenon for western country, for Azerbaijan it is new, as country lived in planned economy till 1991. The results of the research are thought to be beneficial to both the theorists and the practitioners.</p>

scholarly journals Market Orientation Practices among Micro-Sized Enterprises: A Descriptive Evidence using MKTOR Scale

2018 ◽  
Vol 2 (4) ◽  
pp. 1-8
Author(s):  
Dzulkarnain Musa
Keyword(s):  
Market Orientation ◽  
Random Sampling ◽  
Customer Orientation ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Mean Value ◽  
Stratified Random Sampling ◽  
Competitor Orientation ◽  
The Mean ◽  
High Level

Previous studies have found that market orientation practices were important in benefiting the continuity of the business firms. In this regard, the study tries to focus on the market orientation practices using MKTOR scale including customer orientation, competitor orientation and coordination between functions. The survey type of study was carried out among 136 micro-sized enterprises in Perlis and grouped into four major towns using stratified random sampling technique. Results from the descriptive analysis were shown that the mean value for the three market orientation constructs was at medium high level. The issue gives an overview of moderate market orientation practices amongst such enterprises. This finding provides useful enlightenment to micro-sized enterprises and related parties in developing the business in the future. Some implications to the related parties and future suggestions were discussed.

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

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.

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

2015 ◽  
Vol 30 (2) ◽  
pp. 182-193 ◽  
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.

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

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.

scholarly journals The influence of market orientation on innovation strategies

2016 ◽  
Vol 26 (1) ◽  
pp. 72-90 ◽  
Author(s):  
Alexander Newman ◽  
Daniel Prajogo ◽  
Andrew Atherton
Keyword(s):  
Market Orientation ◽  
Service Sector ◽  
Family Firms ◽  
Customer Orientation ◽  
Cross Sectional ◽  
Content Type ◽  
Competitor Orientation ◽  
Innovation Strategies ◽  
Cross Sectional Design ◽  
Exploratory Innovation

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.

Looking for an emergency door

2016 ◽  
Vol 36 (1/2) ◽  
pp. 102-118 ◽  
Author(s):  
Paolo Rossi
Keyword(s):  
Social Services ◽  
Social Assistance ◽  
Point Of View ◽  
Alternative View ◽  
Dynamic Factor ◽  
Content Type ◽  
Professional Discretion ◽  
The One ◽  
Definition Of ◽  
High Level

Purpose – The paper investigates the role of information asymmetries and sensegiving processes of citizens claiming for social services. The purpose of this paper is to highlight the relevance of applicants’ agency, since it has been generally neglected in the analysis of social services provision. On the contrary, the paper proposes an alternative view, considering applicants as actors who are able to develop dialectic strategies for claiming specific forms of social assistance. Design/methodology/approach – The paper is based on a qualitative research, conducted following an inductive approach. The data have been collected in three different Italian municipalities, where the researcher has been the opportunity to perform a period of observation of the interviews between the social workers of the local social services department and the citizens applying for social assistance. Findings – The findings of the research point out that informational asymmetries play an ambivalent role in the definition of applicant’s strategies, since they represent an ambivalent and dynamic factor, rather than a mere source of disadvantage for the user. From this viewpoint, the citizens’ possibilities to access to social assistance are shaped by both institutional and dialectic factors: on the one hand, access to social assistance relies on specific criteria of eligibility (institutionally defined), but on the other hand the access is the outcome of situated sensegiving processes, performed by both the applicants and the gatekeepers of social services during their encounters. Research limitations/implications – The research is based on the analysis of a small number of cases, within a context that is characterized by a high level of organizational and professional discretion in the regulation of the provision of social assistance. Practical implications – The findings of the research urge policy maker to re-consider applicants as strategic actors and opens the space for the development of new options of regulation of the delivery of social services. Social implications – The paper suggests to consider the applicants for social services as people who, although in a condition of need, are capable to identify specific forms of assistance. From this point of view, informational asymmetries are not be considered as a stigmatic issue, but as a space which calls for further and less superficial investigation. Originality/value – The paper challenges some of the most taken-for-granted theoretical assumptions in the analysis of the regulation of the access to social assistance. First, it proposes a dynamic interpretation of the notion of informational asymmetries, considering them as a space for action, rather than a binding factor; second, it emphasizes the relevance of user’s agency in the access to welfare services, that is generally neglected since most analyses focus on professional discretion disregarding the hypothesis of the user as a strategic actor.

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