scholarly journals The relationship between a market orientation and financial performance in South African organisations

2000 ◽  
Vol 31 (2) ◽  
pp. 84-90 ◽  
Author(s):  
S. S. Loubser
Keyword(s):  
Market Orientation ◽  
South African ◽  
Business Performance ◽  
Core Competencies ◽  
Business Leaders ◽  
Business Culture ◽  
Business Excellence ◽  
Organisational Dynamics ◽  
The Relationship ◽  
Business Philosophy

Organisations are in constant flux and with powerful universal trends such as globalisation, technological discontinuity, deregulation and new competencies within a continuously changing environment, both business leaders and academics are searching for new insights into organisational dynamics. In recent years more and more academics have suggested that a market orientation should be considered as a business philosophy and/or business behaviour that will lead to better business performance. However, not much research has been done on this organisational phenomenon and it is not well understood. Market orientation has been defined in this study as the business culture that is focused on creating mutually rewarding relationships between customers and the organisation based on a foundation where (I) the interests of all stakeholders are actively pursued: (2) competitive advantage is based on the organisation's ability to learn from the market itself, and to mobilise core competencies in response: (3) a set of beliefs exists that puts the customer's interests first: and (4) processes exist that support this belief. This study differs from previous empirical research on market orientation in that it takes a systemic view of market orientation, rather than a cause-effect view. It considered 449 unlisted and 51 listed organisations, and found that a market orientation leads to better financial results. Also, market orientation is a necessary, but maybe not sufficient, condition for business excellence, and further research needs to be done in this regard.

Entrepreneurial orientation, market orientation and opportunity exploitation in driving business performance: moderating effect of interfunctional coordination

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rose Boitumelo Mathafena ◽  
Jabulile Msimango-Galawe
Keyword(s):  
Market Orientation ◽  
South African ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
The South ◽  
Content Type ◽  
Opportunity Exploitation ◽  
Corporate Context ◽  
The Impact ◽  
The Relationship

Purpose The study aims to investigate the extent to which interfunctional coordination (IFC) moderates the relationship between entrepreneurial orientation (EO), market orientation (MO) and organisational opportunity exploitation (OE) and business performance (BP); second, to examine the impact of EO, MO and organisational OE on the BP. Design/methodology/approach The study used a cross-sectional design approach, with the research framework tested on a sample of 203 cases of employees mostly at skilled, professional and management levels in Gauteng Province. Data was analysed through correlation, regression and moderation analysis. Findings The results indicated that EO, MO and OE account for BP. Furthermore, IFC significantly moderates only the relationship between MO and BP (financial) and OE and BP (non-financial). While the relationship between EO and BP is not significantly moderated. Practical implications The study highlights that IFC is not yet embedded in organisational practice and culture. Scaling interventions to promote IFC as a performance enabler, particularly in conjunction with the entrepreneurial, market-oriented and OE activities, is essential in the South African corporate entrepreneurial environment. Originality/value Although EO, MO and OE are widely recognised as performance enablers, very little is known about the potential moderating role of IFC towards these identified complementary strategic capabilities within the South African corporate context. The empirical research strengthens awareness about the need and criticality of IFC in improving organisational performance in emerging economies.

scholarly journals The Quality Of Leader/Employee Relationship

2006 ◽  
Vol 4 (2) ◽  
Author(s):  
F. J. Carstens ◽  
Neil Barnes
Keyword(s):  
South Africa ◽  
Decision Making ◽  
Business Performance ◽  
Business Leaders ◽  
Research Approach ◽  
Sufficient Condition ◽  
Employee Relationship ◽  
The Relationship

This study set out to investigate what role the quality of the relationship between business leaders and their employees played in the performance of their business. The study compared the business performance of forty-five area managers in one of the major listed banks in South Africa with their specific leader/employee relationship profiles. The research approach was quantitative and of a correlational nature. The results indicate that although certain elements within the relationship between business leaders and employees indeed have an influence on business performance this alone was not a sufficient condition. The study suggested that the dimensions relating to vision, trust, accountability and decision- making have the strongest influence on business performance. Further research in this area is suggested.

scholarly journals The Role of Business Ethics in the Relationship between Market Orientation and Business performance

2015 ◽  
Vol 4 (1) ◽  
pp. 70-94
Author(s):  
Gusti Oka Widana ◽  
Sudarso K Wiryono ◽  
Mustika S Purwanegara ◽  
Mohamad Toha
Keyword(s):  
Business Ethics ◽  
Market Orientation ◽  
Business Performance ◽  
Islamic Banks ◽  
Managerial Implication ◽  
Strategic Actions ◽  
Islamic Business Ethics ◽  
The Relationship ◽  
A Company

The positive of impact of market orientation toward business performance of a company is a common wisdom in the marketing literatures. Hence the prior studies recommend that the connection will depend on other strategic actions. In this regards, this study tries to assess the construct of business ethics as the precedent of market orientation in the context of Indonesia Islamic banks. Upon assessing data using SmartPLS, this study finds that market orientation is the determinant of business performance and Islamic business ethics is the precedent of market orientation. However, market orientation is not effective as the mediator in the relationship between Islamic business ethics and business performance. The discussion of this finding is provided as well as the managerial implication at the end of this paper.

Does Market Orientation Mediate between Knowledge Management Orientation and Business Performance?

2019 ◽  
Vol 18 (04) ◽  
pp. 1950039
Author(s):  
Rayees Farooq ◽  
Sandeep Vij
Keyword(s):  
Knowledge Management ◽  
Market Orientation ◽  
Business Performance ◽  
Service Sector ◽  
National Capital Region ◽  
Firm Level ◽  
Indian States ◽  
Jammu And Kashmir ◽  
Management Orientation ◽  
The Relationship

The objective of the study is to test the relationship between knowledge management orientation (KMO) and business performance (BP). KMO is a higher-order construct consisting of three second-order constructs: learning orientation (LO), knowledge sharing orientation (KSO), and information technology orientation (ITO). The paper explores the mediating role of market orientation (MO) in the relationship between KMO and BP. In this firm-level study, the personal survey was administered to key informants in 400 listed firms (from manufacturing and service sector) from North Indian States and Union Territories [including Punjab, Haryana, Himachal Pradesh, Jammu and Kashmir, Uttaranchal, Uttar Pradesh, Rajasthan, Chandigarh and National Capital Region (NCR)]. Two respondents each from these 400 firms were approached. The study found that KMO positively affects BP. MO does not mediate the relationship between KMO and BP. Rather, KMO fully mediates the relationship between MO and BP. The study provides evidence in support of KMO as a mediator between MO and BP. KMO of the firm provides a dynamic capability for realizing the benefits of a firm’s MO. The study contributes to the knowledge management literature by empirically validating the KMO, MO and BP constructs.

Social Innovation, Environmental Innovation, and Their Effect on Competitive Advantage and Firm Performance

2012 ◽  
pp. 89-104
Author(s):  
Javier Amores Salvadó ◽  
José Emilio Navas López ◽  
Gregorio Martín de Castro
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Business Performance ◽  
Social Innovation ◽  
Core Competencies ◽  
Environmental Innovation ◽  
Innovative Strategies ◽  
And Performance ◽  
Indirect Relationship ◽  
The Relationship

The proposal below provides a special emphasis on the relationship between businesses and natural environment. It is argued that the inclusion of environmental criteria to business activities promotes the creation of new core competencies, offering a creative and innovative perspective to the organization that can lead to the achievement of sustainable competitive advantages. More specifically, we analyze both the existence of a direct relationship between Environmental Innovation and Firm Performance and the existence of an indirect relationship between the two, which highlights the mediating role of the kind of competitive advantage generated. It also provides an innovative approach, as it explains the Environmental Innovation from the literature on Social Innovation, considering Environmental Innovation as an expression of Social Innovation through the incorporation of ethical arguments to products, processes and organizational modes of the company. The main contributions of this work can be summarized as follows: (1) It explains the nature of Environmental Innovation through the Social Innovation literature, which allows consideration of some key aspects of administrative and technological innovations that have not been taken into account the academic literature. (2) The different types of environmental innovations are analyzed as a necessary step to understand the strategic options in the environmental field. (3) Environmental Innovation is related to business performance. The practical implications of the relationship between environmental innovation and performance are of great importance, since it directly influence the type of environmental strategy chosen, allowing the company to choose from innovative strategies (based on pollution prevention) or more conservative strategies (emissions control).

The Relationship Between Proactive Management of Core Competencies and Business Performance

2013 ◽  
Vol 12 (02) ◽  
pp. 1350016 ◽  
Author(s):  
Lidia Garcia-Zambrano ◽  
Arturo Rodriguez-Castellanos ◽  
Jose Domingo García-Merino
Keyword(s):  
Financial Reporting ◽  
Business Performance ◽  
Basque Country ◽  
Core Competencies ◽  
Essential Elements ◽  
Intangible Resources ◽  
Proactive Management ◽  
Tangible Assets ◽  
Study Results ◽  
The Relationship

Intangible resources drive economic growth, and are considered the fundamental source of business value. Intangibles have become key factors in generating competitive advantages, despite the fact that traditional financial reporting continues to focus on tangible assets. This is primarily due to the fact that the majority of intangible resources are invisible and considered a current expense on financial statements. Top level management on the other hand may be discouraged from investing in intangible resources, even though numerous studies link investments in R&D, advertising, and training, to the performance of the company. Studies also suggested that core competencies, as a form of intangible human capital, are critical competitive factors and essential elements of corporate competitive advantage. Despite that, few studies analyse the relationship between investments in core competencies and corporate performance. The main objective of this study is to attempt to fill the gap in this area of the current literature and test the extent to which investments in core competences, translates into direct improved organisational performance. The field study was conducted by making telephone calls to the financial managers of different Basque Country companies. Their responses and the financial performance of their companies was analysed and reported in this study. Results from the study show that firms with managers whom affirm their investment in intangible resources have better overall growth and sustained economic development.

scholarly journals The Impact of Market Orientation on Business Performance: Evidence from a Developing Country

2020 ◽  
Author(s):  
Sany Sanuri Mohd. Mokhtar ◽  
Rushami Zien Yusoff
Keyword(s):  
Market Orientation ◽  
Developing Country ◽  
Business Performance ◽  
Pearson Correlation ◽  
Simple Random Sampling ◽  
Sampling Procedure ◽  
Market Focus ◽  
Market Feedback ◽  
The Impact ◽  
The Relationship

The main aim of this paper is to investigate the relationship between market orientation and business performance. Hypothesis concerning the relationship between market orientation and business performance were posited and tested. Data were collected using a mail questionnaire survey approach. This study employed a simple random sampling procedure in selecting the organisations for inclusion in the sample. A total of 158 Malaysian manufacturing organisations participated in this study. Factor analysis, Pearson correlation, and multiple regression methods of data analysis were utilised for hypotheses testing. The results revealed that market focus, market action, market planning, market feedback, and market coordination jointly explained 32.6% of the variance of business performance. Market focus and market coordination were found to have statistically significant association with business performance. The outcome of this study provides vital information from a developing country perspective on the impact of market orientation practices on manufacturing organisations’ performance.  

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