The impact of market orientation levels on business performance results

2016 ◽  
Vol 8 (3) ◽  
pp. 296-309 ◽  
Author(s):  
Sergei Kazakov
Keyword(s):  
Data Analysis ◽  
Emerging Markets ◽  
Market Orientation ◽  
Business Performance ◽  
Service Industry ◽  
Positive Impact ◽  
Service Industries ◽  
Content Type ◽  
Orientation Model ◽  
The Impact

Purpose The purpose of this paper is to study the impact of market orientation on a companyµs business performance in a service industry using one of the emerging markets as a research setting. Design/methodology/approach The examination of two recognized MKTOR and MARCOR market orientation concepts in this paper led to the development of a market orientation model in a service industry that considers the local specifics of doing business. The model was tested in a study of 133 businesses that operate in a Russian service industry. The data analysis was completed to investigate and measure the impact of the market orientation level on a company’s business performance. Findings The data analysis following the field study determines that market orientation delivers a positive impact on the company’s overall business performance. Practical implications Inter-functional coordination should receive broad attention from company management, as this market orientation element is the most vital for business performance – especially in service industries. Accompanying model elements also provide leverage to business performance that should not be overlooked. Synchronized utilization of the market orientation model elements has a very positive impact on the company’s business. Originality/value This research paper contributes to an array of publications dedicated to market orientation in one of the most multifaceted emerging markets, the Russian Federation. It is also the first time that the market orientation concept has been applied by service industry organizations in Russia.

Mcdonald’s versus Vikram Bakshi

2021 ◽  
Vol 11 (4) ◽  
pp. 1-27
Author(s):  
Nitin Pangarkar ◽  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Service Industry ◽  
Executive Development ◽  
Content Type ◽  
Academic Level ◽  
Quick Service ◽  
Term Performance ◽  
The Impact

Learning outcomes The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges. Case overview/synopsis McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term. Complexity academic level MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

The speed of change and performance risk: examining the impacts of IT spending in the US hotel industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nan Hua ◽  
Tingting Zhang ◽  
Melissa F. Jahromi ◽  
Agnes DeFranco
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Hotel Industry ◽  
Content Type ◽  
Performance Risk ◽  
The Us ◽  
The Usa ◽  
Revenue Volatility ◽  
The Impact ◽  
Speed Accuracy

Purpose This study aims to investigate the impact of the speed of change (trend) in information technology (IT) expenditures on performance risk indicated by revenue volatility in the US hotel industry. Design/methodology/approach To systematically investigate the impacts of IT expenditures on hotel performance risks, this study collects the same store proprietary data of 1,471 hotel properties from CBRE, a leading hotel consulting firm in the USA, from 2011 to 2017, with a total of 10,297 observations. Findings Econometric analyses are performed and results indicate a significant and positive impact of the speed of change of IT systems expenditures on the performance risk after comprehensively controlling for confounding factors following prior research. Originality/value With the increased importance of IT in day-to-day activities, hospitality business owners have started to quickly adjust their investment in IT infrastructure and superstructure to enhance their business performance. However, their fast-changing expenditures may introduce more risks to their businesses based on the speed–accuracy tradeoff, systems theory and the Schumpeterian Growth Model. This study is one of the pioneer projects that ever assessed the impact of IT expenditure and speed of change on performance risks of hotels.

R&D volatility and market value: the role of executive overconfidence

2019 ◽  
Vol 14 (2) ◽  
pp. 411-431
Author(s):  
Benlu Hai ◽  
Qingzhu Gao ◽  
Ximing Yin ◽  
Jin Chen
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Market Value ◽  
Data Set ◽  
Content Type ◽  
Dynamic Perspective ◽  
Innovation Strategies ◽  
The Impact ◽  
The Relationship

Purpose Significant increase or decrease in research and development (R&D) expenditure may have an immense impact on market value. Based on the punctuated equilibrium theory, this paper aims to empirically analyze the impact of R&D volatilities on market value and the moderating effect of executive overconfidence. Design/methodology/approach The study uses the panel data set that covers 902 Shanghai and Shenzhen A-share manufacturing listed firms and multiple regression method to test the theoretical hypotheses. Findings The results show that both positive and negative R&D volatilities have a robust and significant positive impact on the market value. Further analysis shows that the executive overconfidence positively moderates the relationship between R&D volatilities and market value. Research limitations/implications In a rapidly changing and highly competitive environment, firms should recognize that the balance of innovation strategies will help to bring higher market value. Furthermore, firms could improve corporate governance to make the best of managerial characteristics, such as overconfidence, on the innovation decision-making process. Originality/value By pushing the static perspective to a dynamic perspective and empirically documenting the role of executive overconfidence, this study contributes to the literature on the relationship between R&D expenditure and market value, generating theoretical and practical insights for firms to improve innovation governance and innovation strategies to achieve better business performance.

The impact of nostalgic emotion on brand trust and brand attachment

2019 ◽  
Vol 31 (4) ◽  
pp. 1118-1137 ◽  
Author(s):  
Tao Wen ◽  
Tong Qin ◽  
Raymond R. Liu
Keyword(s):  
Theoretical Model ◽  
Positive Impact ◽  
Service Industries ◽  
Theoretical Research ◽  
Brand Trust ◽  
Brand Attachment ◽  
Content Type ◽  
Four Dimensions ◽  
Potential Applicability ◽  
The Impact

Purpose The purpose of this paper is to make up the deficiency of theoretical research in nostalgic marketing and is helpful for the original theories of brand marketing and experiential marketing to deepen further. Design/methodology/approach The paper uses the approach of the empirical study. Based on the literature review, a theoretical model of the impact of nostalgic emotion (NE) on brand trust and brand attachment is constructed and corresponding research hypotheses are proposed. Then nostalgia-themed restaurants are selected to complete a questionnaire survey, and SPSS22.0 and LISREL8.70 are used for data analysis and hypothesis testing. Findings The results of the paper show that NE consists of four dimensions in the context of China: atmosphere nostalgia, interpersonal nostalgia, family nostalgia and personal nostalgia. Among these, NE has a significant positive impact on brand trust and brand attachment; further, brand trust has a significant positive impact on brand attachment and plays a partial mediating role in the impact of NE on the latter. Research limitations/implications As the nostalgic restaurant industry is the research object, the theoretical model described here may be limited to this specific industry. The potential applicability of the theoretical model to other service industries requires further study. Practical implications The results of the paper are helpful in building a good nostalgic experience, increasing consumer trust in restaurant brands, and strengthening the connection between NE and restaurant brand reconstruction. Social implications The results of the paper on the impact of NE on brand trust and brand attachment provide a referential basis and guide for services’ companies (e.g. restaurants) to revitalize the services’ brands. Originality/value The first contribution is that NE scale is constructed for the nostalgia-themed restaurants. The second contribution is that the paper reveals the mechanism of the impact of NE on brand trust and brand attachment.

Interfunctional Coordination at Hi-Tech Firms

2012 ◽  
Vol 23 (1) ◽  
pp. 70-76 ◽  
Author(s):  
Lucie Kanovska ◽  
Eva Tomaskova
Keyword(s):  
Czech Republic ◽  
Market Orientation ◽  
Business Performance ◽  
Positive Impact ◽  
External Environment ◽  
New Method ◽  
Mutual Cooperation ◽  
The Czech Republic ◽  
The Impact ◽  
A Company

The paper is focused on the determination of new knowledge about interfunctional coordination. Interfunctional coordination was defined at the beginning of 90s. It is the coordination of all company activities leading to the increase of business performance. Interfunctional coordination is connected with market orientation. It is one of necessary principle of market orientation. It is not possible to use market orientation without interfunctional coordination. Market orientation is based on marketing conception. The first detailed studies were offered by Kohli and Jaworski (1990) and Narver and Slater (1990). Market orientation is described as a method helping to contribute better managing of a company by many researchers. A lot of papers on this topic were publicized during the last two decades. The earliest papers involved the first definitions of market orientation; offered methods for its measuring; and investigated the impact of market orientation on business performance. The last attitudes towards market orientation agree that market orientation enables managers to focus on external and internal elements and activities, which influence the activity of a company leading to its performance increase (Tomaskova, 2009). At present, we have a lot of methods used for the measuring of market orientation. Using a proper method depends on the branch or economic system. The perception of the implementation of market orientation is changing during the period, as well. However, the main principle is still the same – market orientation has a positive impact on business performance. Nowadays, a lot of authors deal with the implementation of market orientation. Because of this reason, we have prepared research “Research on implementation on market orientation in Hi-Tech Firms” (GA 402/07/1493). The goal of the research was to detect barriers of the implementation of market orientation. We divided the barriers of the implementation into three parts according to managers’ influence in an internal, branch and external environment. State, economy and technologies are named as the main elements of external environment. The main barriers connected with the elements of branch environment are quality and quantity of branch stakeholders. Barriers of internal environment involve the barriers connected with the top management and its personality, skills, knowledge and experiences, all employees of a company and interfunctional coordination. The paper deals with the interfunctional coordination at hi-tech firms. The objective of the paper is to define barriers connected with interfunctional coordination and to detect the perception and importance of interfunctional coordination at hi-tech firms. The theoretical knowledge is noticed in some research studies. The data was acquired by means of a questionnaire. New Method measured market orientation in a company. The questionnaire New Method with 7-point Likert scale constituted by Tomaskova (2005) was used for the research. The complete database was analysed by using standard statistical methods (correlation analysis, Spearman correlation coefficient, chi-square) as well as other sophisticated techniques (Cronbach alpha). The main results of the research show that the level of market orientation at the hi-tech firms in the Czech Republic is high and confirm how important is gaining information and using this information inside the company for market orientation. The main results of the research confirm that interfunctional coordination is the base of market orientation. Hi-tech firms in the Czech Republic perceive interfunctional coordination as very necessary presumption for their future development and prosperity. The highest rate for this part received the following statements confirming positive company attitude for innovation, preference for teamwork and mutual cooperation in firms and also effort to be flexible. On the other hand, the lowest average rate had the statement describing relations between superiors and subordinates and their strictness and formalness.DOI: http://dx.doi.org/10.5755/j01.ee.23.1.1224

Market orientation, entrepreneurial orientation and business performance among small retailers

2015 ◽  
Vol 43 (7) ◽  
pp. 580-596 ◽  
Author(s):  
Sami Kajalo ◽  
Arto Lindblom
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Business Performance ◽  
Marketing Capabilities ◽  
Performance Impact ◽  
Content Type ◽  
Equation Modelling ◽  
Research Findings ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of market orientation (MO) and entrepreneurial orientation (EO) on business performance among small retailers. In particular, the goal is to understand and determine to what extent MO and EO influence firm performance directly, and to what extent MO and EO are connected to performance via marketing capabilities. Design/methodology/approach – The developed conceptual model is tested using structural equation modelling (SEM) using a sample of 202 small retailers. Findings – The result of the SEM model shows that both MO and EO act as a basis for improved business performance among small retailers. However, the performance impact of MO and EO is not that straightforward. Based on the research findings, it can be argued that both MO and EO require marketing capabilities to more fully unlock their value-creating potential among small retail firms. Originality/value – This study has provided new insights regarding the impact of MO and EO on business performance in the context of small retail firms. In particular, the study has contributed to the literature by demonstrating the routes through which MO and EO impact on performance.

scholarly journals The Impact of the Alignment Between Information Systems and Marketing on Business Performance

2021 ◽  
Author(s):  
◽  
Valerie Anne Hooper
Keyword(s):  
Information Systems ◽  
Conceptual Model ◽  
Market Orientation ◽  
Business Performance ◽  
Positive Impact ◽  
Strategic Orientation ◽  
Business Strategies ◽  
Second Phase ◽  
Marketing Performance ◽  
The Impact

<p>The purpose of this research was to determine the impact of the strategic alignment between information systems (IS) and marketing on business performance. The work of Chan (1992) was used as a point of departure. She had explored the fit between IS and business strategies and had used strategic orientation as a basis for determining the fit (alignment). Although the marketing literature did not reveal any measure for alignment, measures existed for market orientation. This appeared to be the approximate marketing equivalent of strategic orientation. Given the strategic nature of market orientation, it was decided to use it in addition to strategic orientation in order to calculate alignment. It was also decided to use marketing performance as an intermediary dependent variable. A conceptual model was devised which could be applied to the assessment of alignment according to either strategic orientation or market orientation. It consisted of three constructs: alignment, marketing performance and business performance. Implicit in this model was the calculation of alignment based either on strategic orientation or on market orientation. Two versions of the model would thus be tested. A mixed methods approach was adopted for the research. First, a qualitative phase of interviews with 36 respondents (the heads of information technology (IT)/IS and the heads of marketing of 18 companies) was conducted. The purpose was to obtain a deeper understanding of perceptions of alignment between IS and marketing, and to ascertain the different measures used for marketing performance and business performance. The findings served to refine the conceptual model and inform the second phase survey. The second phase was quantitative and consisted of a mail survey of heads of IT and heads of marketing of large New Zealand companies. In total 415 responses were received, 350 of them being pairs from 175 companies.  Pairs of responses were a requirement for the calculation of alignment. A new formula was developed for the calculation. This was used to calculate alignment according to both strategic orientation and market orientation. The data collected in the second phase were used to test the model, using both factor analysis and structural equation modelling. Statistically significant evidence was provided that indicated that the alignment between IS and marketing exerts a positive impact on both business performance and marketing performance, and that marketing performance exerts a positive impact on business performance. This is so, irrespective of whether alignment is calculated according to strategic orientation or market orientation. The value of the research lies in the development of a parsimonious model which measures the alignment between IS and marketing and the impact of that on business performance. It also lies in the development of a robust formula for the calculation of alignment. It further demonstrates the value of a cross-disciplinary approach which could have significant implications for both academic research and for practitioners. The potential impact on companies consists of the breaking down of the silo mentality; an emphasis on cross-functional teamwork, cross-functional training and job rotation; and an impact on organizational structure and culture.</p>

An emerging market perspective of what makes professional service firms successful

2020 ◽  
Vol 17 (1/2) ◽  
pp. 57-78
Author(s):  
Felix Nana Abaka Sackey ◽  
Livingstone Divine Caesar
Keyword(s):  
Emerging Markets ◽  
Positive Impact ◽  
Emerging Market ◽  
Professional Services ◽  
Professional Service ◽  
Service Firms ◽  
Strategic Partnerships ◽  
Professional Service Firms ◽  
Content Type ◽  
The Impact

Purpose Despite the criticality of strategic partnerships to the survival and success of professional service firms (PSF) in emerging markets, there is a dearth of research on the subject matter. Specifically, not much is known concerning the dynamics of partnerships among small and medium-sized enterprises (SMEs) in the professional services sector of the economy. This paper aims to explore the dynamics of the impact of constructs such as attributes of partnership, communication behaviour and collaborative conflict resolution on partnership success. Design/methodology/approach A quantitative survey sent to 300 small and medium-sized PSFs achieved a 79% response rate. The data is then analysed using bivariate and multi-variate techniques. Findings The results revealed a positive relationship between two of the three constituents of attributes of the partnership (i.e. commitment and coordination) and the success of partnerships. Commitment and coordination emerged as the significant attributes of partners that affect the success of the partnership. Contrary to previous studies, trust and information sharing did not have a positive impact on partnership success. Practical implications PSFs in emerging markets need concerted efforts to maintain competitive and sustainable partnerships. To make any significant impact, they must develop contemporary skills in collaborative conflict management. Originality/value This paper highlights the need for PSFs and SMEs in other service sectors of emerging markets to harness partnerships as a valuable tool to overcome the policy shortcomings of current regulatory frameworks within their respective markets.

Export market orientation and export performance in emerging markets: insights from the Peruvian agri-export sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oscar Malca ◽  
Jean Pierre Bolaños ◽  
Jorge Luis Rubio Donet ◽  
Francisco Acedo
Keyword(s):  
Emerging Markets ◽  
Market Orientation ◽  
Export Performance ◽  
Export Market ◽  
Future Research ◽  
Content Type ◽  
Export Sector ◽  
Relational Norms ◽  
The Impact ◽  
The Relationship

PurposeThe objective of this research is to analyse the joint impact of export proactivity and coordination capacity as mediators on the relationship between export market orientation (EMO) and export performance and the relational norms and export continuity as EMO's antecedents.Design/methodology/approachThe study uses structural equation modelling for the analysis of 127 small and medium enterprises (SMEs) from the agri-export sector in Peru.FindingsThe research demonstrates the mediating role of export proactivity between EMO and export performance and the impact of relational norms as an antecedent of EMO as well as that of export continuity in export performance.Research limitations/implicationsThe cross-sectional study design has certain limitations; thus, longitudinal research is necessary to analyse the evolution of the impact of these variables. Future research should also consider new variables, such as absorptive capacity and institutional distance, in relation to EMO and export performance in emerging markets.Originality/valueThis research paper provides a perspective that is an alternative to the traditional literature related to EMO since coordination capacity and export proactivity have been used as EMO's antecedents. However, in emerging countries, such as Peru, exports are based on comparative advantages. Under this context, it is necessary to analyse export proactivity and coordination capacity as mediators of the relationship between EMO and export performance and the relational norms and export continuity as EMO's antecedents.

scholarly journals A system dynamics approach for assessing SMEs' competitiveness

2020 ◽  
Vol 27 (4) ◽  
pp. 555-578 ◽  
Author(s):  
Esteban Lafuente ◽  
László Szerb ◽  
András Rideg
Keyword(s):  
Small Businesses ◽  
Business Performance ◽  
Positive Impact ◽  
Central Element ◽  
Competitive System ◽  
Resource Based View ◽  
Content Type ◽  
Configuration Theory ◽  
Resources And Capabilities ◽  
The Impact

PurposeThe analysis of the interconnectedness between resources and capabilities, and the way businesses use them as competitive weapons is a central element of the strategic management literature. Finding the appropriate configuration of competitive pillars is particularly relevant for resource-constrained small businesses. Drawing on the resource-based view and the configuration theory, this study evaluates the effect of both competitiveness and the configuration of the competitiveness system on performance.Design/methodology/approachAn index methodology based on the configuration theory was used to compute the competitiveness index on a unique sample of 625 Hungarian small- and medium-sized firms. The study hypotheses were tested via regression analysis.FindingsResults show that the impact of competitiveness-enhancing strategies is conditional on the configuration of the system of competencies. Low-competitive businesses benefit more from investments in the weakest competitive pillar, while strategies oriented to improve more than one competitive pillar yield higher competitiveness improvements among high-competitive businesses. Our findings also indicate that competitiveness positively impacts performance, and that the exploitation of competitive strengths leads to superior results among high-competitive businesses.Originality/valueBy employing an index methodology, our analysis contributes to unveil how competitiveness impact business performance. The proposed analysis has value for scholars and strategy makers by showing how the configuration of the business' competitive system—in terms of competitive strengths and weaknesses—conditions the generally positive impact of competitiveness enhancing actions linked to the acquisition or development of resources and capabilities.

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