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 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>

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.

Linking Market Orientation To Strategy Through Segmentation Complexity

2010 ◽  
Vol 8 (9) ◽  
Author(s):  
Mohammad Ali Zolfagharian ◽  
Angelica Cortes
Keyword(s):  
Market Orientation ◽  
Indirect Effects ◽  
Customer Orientation ◽  
Cost Leadership ◽  
Competitor Orientation

Relying on the cultural view of market orientation, we introduce segmentation complexity as a key mediator between market orientation (i.e., customer orientation and competitor orientation) and the strategies of differentiation, cost leadership, and innovation.  Customer orientation is positively related to segmentation complexity, differentiation, and innovation, and negatively to cost leadership.  Competitor orientation is positively related to all of these strategies.  The indirect effects of both customer and competitor orientation are mediated through segmentation complexity, which is positively related to differentiation and innovation, and negatively to cost leadership.

Measuring Market Orientation: Further Evidence on Narver and Slater's Three-Component Scale

2003 ◽  
Vol 93 (3_suppl) ◽  
pp. 1070-1072 ◽  
Author(s):  
Subhra Chakrabarty ◽  
Joseph N. Rogé
Keyword(s):  
Factor Analysis ◽  
Confirmatory Factor Analysis ◽  
Market Orientation ◽  
Random Sample ◽  
Customer Orientation ◽  
Factor Model ◽  
Mail Survey ◽  
Marketing Managers ◽  
Confirmatory Factor ◽  
Competitor Orientation

A mail survey of a national random sample of 2,000 marketing managers was conducted. The data provided by 222 respondents were analyzed to assess the dimensionality of Narver and Slater's 15-item measure of market orientation. A confirmatory factor analysis, using LISREL 8.53, provided support for each of the separate dimensions of customer orientation, competitor orientation, and interfunctional coordination. However, a combined 3-factor model of market orientation was not supported. Directions for research are suggested.

scholarly journals Impact of Market Orientation Components on Organizational Performance of SMEs. The single-industry approach " Food and Beverage Sector"

2021 ◽  
Vol 8 (5) ◽  
pp. 504-516
Author(s):  
Akram Abdulsamad ◽  
Noor Azman ALI ◽  
Anuar Shah Bali Mahomed ◽  
Haslinda Hashim ◽  
Abdulwahab Jandab ◽  
...  
Keyword(s):  
Organizational Performance ◽  
Market Orientation ◽  
Latent Variables ◽  
Latent Variable ◽  
Structural Equation ◽  
Customer Orientation ◽  
Equation Model ◽  
Food And Beverage ◽  
Competitor Orientation ◽  
Main Components

This study examines the direct effect of the three main components of the market orientation on the organizational performance of SMEs in Yemen. Four variables are used in the research, are competitor orientation, customer orientation, and inter-functional coordination, as the exogenous latent variables, whereas organizational performance, as the endogenous latent variable. The quantitative approach is applied in this study with causal and descriptive research. The single-sector method is adopted, is the food and beverage sector, by using random sample sampling, the sample size was 640 managers/owners. only 459 samples were valid to conduct the analysis by using the Structural Equation Model (SEM) in SmartPLS Software version 3.0. The findings of the study reveal that the three main components of the market orientation have a positive and significant impact on SMEs' organizational performance. However, the effect size of customer orientation on organizational performance was more than competitor orientation and inter-functional coordination.

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 PENGARUH ORIENTASI PELANGGAN DAN ORIENTASI PESAING TERHADAP INOVASI PASAR DAN PERTUMBUHAN PENJUALAN PERUSAHAAN MAKANAN DI SURABAYA

2017 ◽  
Vol 14 (3) ◽  
pp. 271
Author(s):  
Wahyudiono Wahyudiono
Keyword(s):  
Path Analysis ◽  
Market Orientation ◽  
Customer Orientation ◽  
Analysis Tool ◽  
Sales Growth ◽  
Test Results ◽  
Complete Enumeration ◽  
Industrial Estate ◽  
Competitor Orientation

The aim of the study  is to examine  the effect of market orientation and competitor orientation to market  innovation and sales growth, and the effect of market innovation to the sales growth of food Companies in Surabaya. The population of the study is all big food companies, which are operated until the end of 2008, and located in Surabaya Industrial Estate Rungkut (SIER). This research employs complete enumeration since the number of population is relatively small (23 food  companies), whereas the analysis tool is path analysis. The test results indicate that: market orientation has direct, positive and significant effect to market innovation of food companies. Competitor orientation has direct, positive and significant effect to market innovation of food companies. Customer orientation has direct, positive and significant effect to the sales growh of food companies. Competitor orientation has direct, positive and significant effect to sales growh of food companies. The market innovation has direct, positive and significant effect sales grown of food companies. Another important finding shows that market  innovation is able to mediate customer orientation and market orientation with growth sales of companies. It means that the presence of market innovation is required to strengthen the effect of customer orientation and competitor orientation to sales growth of companies.

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

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