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

2014 ◽  
Vol 2 (1) ◽  
pp. 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

<p><em>In existing Market orientation research,</em><em> </em><em>the components of the market orientation construct are generally theorized to follow the conceptualizations of either Kholi and Jaworski</em><em> </em><em>(1990)</em><em> </em><em>or Narver and Slater</em><em> </em><em>(1990).</em><em> </em><em>This study looks into the nature of the correlational relationship between market orientation and firm performance using sample data from firms in Botswana.</em><em> </em><em>How Narver and Slater’s scale for measuring the extent of market orientation is investigated,</em><em> </em><em>tested,</em><em> </em><em>and used for Botswana Context.</em><em> </em><em>Two symmetric component measures of market orientation</em><em> </em><em>(customer orientation and Competitor orientation)</em><em> </em><em>are developed,</em><em> </em><em>tested in a cross-sectional questionnaire survey.</em><em> </em><em>Result show a positive correlation between market orientation and business performance,</em><em> </em><em>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.</em><em> </em><em>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.</em><em></em></p>

Development and Empirical Validation of Symmetric Component Measures of Multidimensional Constructs: Customer and Competitor Orientation

2008 ◽  
Vol 103 (1) ◽  
pp. 199-213 ◽  
Author(s):  
Hans Eibe Sørensen ◽  
Stanley F. Slater
Keyword(s):  
Market Orientation ◽  
Content Validity ◽  
Customer Orientation ◽  
Empirical Validation ◽  
A Posteriori ◽  
Symmetric Component ◽  
Step Procedure ◽  
Symmetrical Component ◽  
Average Variance ◽  
Competitor Orientation

Atheoretical measure purification may lead to construct deficient measures. The purpose of this paper is to provide a theoretically driven procedure for the development and empirical validation of symmetric component measures of multidimensional constructs. Particular emphasis is placed on establishing a formalized three-step procedure for achieving a posteriori content validity. Then the procedure is applied to development and empirical validation of two symmetrical component measures of market orientation, customer orientation and competitor orientation. Analysis suggests that average variance extracted is particularly critical to reliability in the re-specification of multi-indicator measures. In relation to this, the results also identify possible deficiencies in using Cronbach alpha for establishing reliable and valid measures.

scholarly journals Market Orientation And Performance: Does Organizational Strategy Matter?

2011 ◽  
Vol 18 (1) ◽  
Author(s):  
Kamalesh Kumar ◽  
Ram Subramanian ◽  
Karen Strandholm
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Customer Orientation ◽  
Positive Impact ◽  
Low Cost ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Competitor Orientation ◽  
Cost Leadership Strategy

Data from a survey of 159 hospitals was used to test the relationship between market orientation and firm performance for low cost and differentiation strategies. Hospitals pursuing a differentiation strategy had stronger market orientation than those pursuing a cost leadership strategy. Market orientation had a more positive impact on the performance of organizations pursuing a differentiation strategy than on those pursuing a cost leadership strategy. In the cost leader group, the inter-functional coordination component of market orientation significantly affected firm performance, while in the differentiator group the customer orientation and competitor orientation components of market orientation had significant impact on performance. The implications of these findings for managers also are discussed.

scholarly journals THE INFLUENCE OF MARKET ORIENTATION ON BUSINESS PERFORMANCE OF MICRO SMALL ENTERPRISES OF TEMPE

2020 ◽  
Vol 11 (2) ◽  
pp. 81
Author(s):  
Agista Rosiana
Keyword(s):  
Market Orientation ◽  
Significant Influence ◽  
Structural Equation ◽  
Business Performance ◽  
Customer Orientation ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Test Results ◽  
Competitor Orientation

Market orientation is one of the business culture that produces the best performance through commitment to the customer. The aim of study is to analyze the factors that affect market orientation in operate a business to improve business performance on MSEs in the city of Bogor. The research was conducted on micro small business of tempe in Bogor City. The number of respondents in the research as much as thirty respondents with the determination of respondents by purposive sampling. Data analysis using Structural Equation Modeling (SEM) analysis with smart partial least squares (smart PLS) approach. The results of this study indicated customer orientation variables significantly affect business performance with the results of T tests 2.996> 1.96, competitor orientation variables significantly affect business performance with the test results T 2.544> 1.96, and variables interfunctional coordination was not significantly affect business performance with test results T 1.687 <1.96. Thus, customer orientation and competitor orientation have significant influence to business performance, while inter-functional coordination factor  not give significant influence to business performance.Keywords : Market Orientation, Partial Least Square

The tyranny of the served market: The negative relationship between market orientation and performance among design-driven organizations

2020 ◽  
Vol 6 (1) ◽  
pp. 109-128 ◽  
Author(s):  
Ian D. Parkman ◽  
Samuel S. Holloway
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Business Strategy ◽  
Customer Orientation ◽  
Negative Relationship ◽  
Empirical Support ◽  
Narrow Focus ◽  
Competitor Orientation ◽  
And Performance ◽  
Performance Project

As design has been slowly embraced as an element of business research, a number of well-established organizational strategy concepts have been called into question. This article empirically examines the relationship between firm performance and market orientation (MO), one of the most commonly employed variables within business strategy, among design-driven firms. Our findings suggest that the positive relationship between MO and performance present in most business strategy literature does not appear to hold among organizations with a strong strategic focus on design. Design-driven firms seem to actively downplay MO, resulting in a statistically significant negative relationship between the concept and its three sub-factors: customer orientation (CUST), competitor orientation (COMP), and inter-functional coordination (INTER) on two measures of firm performance, project-level success and competitive advantage. Drawing on related literature and follow-up interviews with firm managers, we rationalize these results as evidence of design-driven firms efforts to avoid the so-called ‘tyranny of the served market’ where a narrow focus on current customers and established competitors within incremental markets can lead to myopia and limit innovation. The implications of this study may be to provide support to managers of design-driven organizations to de-emphasize MO’s narrow focus on close industry rivals and well-defined customers as well as much-needed empirical support for anecdotal accounts of how many traditional business strategy variables, such as MO, may be insufficient, or at least incomplete explanations of design-driven organizations.

scholarly journals Analysis of Market Orientation and Innovation on SMEs Business Performance: Evidence in Kebumen

2020 ◽  
Vol 19 (1) ◽  
pp. 1-10
Author(s):  
Ika Susilowati ◽  
Eni Kaharti
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Market Orientation ◽  
Business Performance ◽  
Customer Orientation ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Research Data ◽  
Competitor Orientation ◽  
Positive Effect

This study aims to analyze empirically the influence of customer orientation, competitor orientation, coordination between functions, innovation on business performance in SMEs in Kebumen. The research data was obtained from SME businesses to scientifically test whether customer orientation, competitor orientation, coordination between functions, innovation affects business performance. The sample used in this study were 100 SMEs in Kebumen Regency who had met the established criteria. The analytical method used is multiple linear regression analysis, using the SPSS 21.0 for windows statistical computer program. The results of hypothesis testing in this study indicate that customer orientation and coordination between functions have a positive effect on business performance. Whereas competitor orientation and innovation have no influence on business performance.

scholarly journals BISIKAN DARI BALIK LAYAR: NETNOGRAFI STRATEGI BISNIS BERORIENTASI PASAR

2017 ◽  
Vol 9 (2) ◽  
Author(s):  
Edi Purwanto ◽  
John J.O.I. Ihalauw
Keyword(s):  
Market Orientation ◽  
Business Performance ◽  
Customer Orientation ◽  
Marketing Research ◽  
Online Forums ◽  
Virtual Ethnography ◽  
Competitor Orientation ◽  
Interpretative Approach ◽  
Different Cultures

<p>Netnography is an interpretative approach to study consumer behavior from different cultures and<br />communities in the cyberspace or Internet. The approach was also called as a “digital ethnography”<br />or “virtual ethnography”. As a marketing research technique, “netnography” uses the information<br />sources published in the online forums. This research uses the reviews on zomato.com as a source of<br />data to assess the market orientation development in business practice, especially at Restaurant X.<br />The result of netnography analysis indicates that customer orientation, competitor orientation, interfunctional<br />coordination and long-term focus are the dimensions of market orientation and should be<br />developed for customer satisfaction and loyalty leading forward to the business performance.</p>

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.

Customer orientation and firm’s business performance

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

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

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.

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