Coopetition and international entrepreneurship: the influence of a competitor orientation

PurposeGuided by a relational, stakeholder perspective of resource-based theory, the purpose of the current investigation is to help unpack the complexity of the performance-enhancing nature of coopetition for international entrepreneurs, namely the interplay between collaboration and competition. The context features under-resourced wine producers owned and managed by entrepreneurs that have implemented an internationalised business model. The focus of the study involves the influence of a “competitor orientation”, namely when decision-makers understand the short-term strengths, weaknesses, long-term capabilities and strategies of key current and potential rivals.Design/methodology/approachData collection primarily featured semi-structured interviews with owner-managers of wine-producing firms in New Zealand that reflected heterogeneity amongst international entrepreneurs' strategies targeting different product markets within their respective business models. Secondary data were also collected where possible. Specifically, interviewees' firms exhibited different portfolios involving wine sales (with varying export intensities) together with augmented sales of tourism-related products/services focussed on the domestic market.FindingsCoopetition activities amongst international entrepreneurs varied; i.e. influenced by respective owner-managers' competitor orientations. Illustrations of different decision-makers' business models within a 2 × 2 matrix feature those with a low- or high-export intensity, together with a narrow or augmented product portfolio. Internationalising entrepreneurs' perceptions varied regarding the extent to which their respective business model was oriented towards local cluster-based domestic tourism with limited export sales, as opposed to those with national and more importantly international wine sales. Possessing and acting upon relevant knowledge manifested in which competitors international entrepreneurs collaborated with and the extent to which this took place across product-market strategies. In turn, this enabled particular decision-makers to exhibit flexibility; hence, entrepreneurs enter and exit certain markets together with changing export intensities, as varying opportunities were identified and exploited.Originality/valueAlthough the performance-enhancing nature of coopetition is largely established in prior literature, the complexity of that relationship remains relatively under-researched, not least, amongst international entrepreneurs. More specifically, the extent to which decision-makers that are engaged in coopetition exhibit a competitor orientation remains under-researched. Unique insights feature a 2 × 2 matrix in order to provide originality regarding international entrepreneurs' respective product-market strategies within their business models that are underpinned by varying coopetition relationships and competitor orientations.

Women’s driving decree, market orientation, and company performance in Saudi Arabia

This paper investigated whether the royal decree of September 2017 allowing women to drive affects the relationship between market orientation and firm performance of official car dealerships in Saudi Arabia. In the empirical investigation, a quantitative method was used, focusing on car dealership managers and executives. The hypotheses were tested using structural equation modelling with data collected from 94 questioned. Market orientation dimensions that were investigated included customer orientation, competitor orientation, and inter-functional coordination. The results indicate a positive effect of market orientation on company performance in Saudi Arabia over two periods, before and after the application of the decree. Before the royal decree, only two of the three dimensions of market orientation affected company performance, customer orientation, and inter-functional coordination. After the decree, all three dimensions of market orientation affected company performance. This proves that political decision has intensified competition in this market. Our results underlined the non-necessity of equality and the strength of the three components belonging to the market orientation on performance. Yet, our investigation is unprecedented having sought to resolve this classic relationship in a specific context.

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

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.

Implementation of Defensive Marketing Strategy MSME in the Time of the Covid-19 Pandemic (Case Study on Warkop Angkringan Giras in Mojokerto Regency)

The purpose of this study was to analyze the Defensive Marketing Strategy carried out by the MSME Warkop Angkringan "Giras" in Mojokerto Regency, in order to be able to compete and keep its business sustainable in the COVID-19 pandemic conditions and obtain optimal profits. This research is an exploratory research where the approach used is a qualitative approach. Qualitative researchers seek to understand life experiences in context and the meanings associated with those experiences by using Focus Group Discussions. The sample amounted to 20 people, who were taken based on certain criteria. Data collection techniques by conducting open ended interviews in the hope of obtaining more complete information from the respondent. Data analysis used descriptive analysis method. The results showed that the Defensive Marketing Strategy in the MSME of warkop angkringan "Giras" Free wifi with a Mental Model is a Competitor Orientation strategy which includes symbols, prices, product differentiation and value promotion,, Customer Orientation Strategy includes superior customer service, innovative product features, and focus in a narrow market segment and a Market Drive Orientation Strategy consisting of Digital Marketing, Healthcare Procedures, crowding services, and Hours of Operation..

Uncovering the role of competitor orientation and emotional capability in enhancing innovation performance

Purpose Competitor orientation (CO) has been considered as a traditional driver of innovation performance (IP), being an important source of innovative ideas. Nevertheless, the slowness of the analytical information processing implicit in CO has been recently questioned in the literature, given the internal resistance in firms to use knowledge coming from rivals. Hence, the purpose of this study is to analyze the mediating effect of emotional capability (EC), which is believed to help overcome this barrier by improving the use of knowledge from such innovation source. Design/methodology/approach Structural equation modeling through the partial least squares method was used to test the research model with survey data from a sample of 123 firms. Findings Contrary to what was assumed, EC mediation is partial and CO has a very significant and direct influence on IP. Nonetheless, the fact that EC mediation accounts for 28% of the total effect of CO on IP indicates that EC plays a complementary role in terms of making the information processing on rivals more agile and intuitive, as well as reducing internal resistance. Practical implications When competitor information is analyzed and used to improve innovation outcomes, a culture where first impressions or hunches expressed by employees must be encouraged and legitimized. Originality/value The development of EC is an alternative way of maximizing the exploitation of the competition as source of innovation. Ignoring its role implies wasting a representative percentage of the benefits of information coming from this external actor, thereby missing the opportunity to capitalize on innovation results.

EXPRESS: Measuring the real-time stock market impact of firm-generated content

Firms increasingly follow an ‘always on’ philosophy, producing multiple pieces of firm-generated content (FGC) throughout the day. Current methodologies used in marketing are unsuited to unbiasedly capturing the impact of FGC disseminated intermittently throughout the day in stock markets characterized by ultra-high frequency trading. They also neither distinguish between the permanent (i.e. long-term) and temporary (i.e. short-term) price impacts nor identify FGC attributes capable of generating these price impacts. In this study, the authors define price impact as the impact on the variance of stock price. Employing a market microstructure approach to exploit the variance of high frequency changes in stock price the authors estimate the permanent and temporary price impacts of the firm-generated Twitter content of S&P 500 IT firms. The authors find that firm-generated tweets induce both permanent and temporary price impacts, which are linked to tweet attributes; valence and subject matter. Tweets reflecting only valence or subject matter concerning consumer or competitor orientation result in temporary price impacts, while those embodying both attributes generate permanent price impact; negative valence tweets about competitors generate the largest permanent price impacts. Building on these findings, the authors offer suggestions to marketing managers on the design of intraday FGC.

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

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.

Market orientation in service clusters and its effect on the marketing performance of SMEs

PurposeThis paper aims to address research gaps with regard to the relationship between market orientation and marketing performance when small- and medium-sized enterprises (SMEs) are located within a service cluster. The three main objectives of this research are to determine the effect that the cluster can have on both the market orientation of clustered companies and their marketing performance and to furthermore evaluate the effect of the market orientation of companies in the cluster on their marketing performance.Design/methodology/approachThis research used executive-level data that were obtained by carrying out a survey involving a unique dataset of 133 Colombian health-related businesses located in the city of Cali (Colombia) in 2014. A system of equations was modeled using SMART PLS. This analysis was complemented by a qualitative study that involved conducting in-depth interviews in six companies.FindingsThe results showed that, among the SMEs, membership in an urban services cluster did not significantly influence marketing performance or the implementation of marketing orientation practices. No differences were observed in internal managerial practices implemented between companies that were co-located and isolated. However, a higher level of competitor orientation was associated with greater marketing performance. Given the verified absence of moderating and mediating effects, our work provides a reasonable basis for proposing future research and practical recommendations.Originality/valueWhile research has demonstrated the relationship between a company's market orientation and marketing performance, this type of analysis has not been carried out on service SMEs in geographic concentrations or clusters.

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

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.

The Relationship between Strategic Orientation, Service Innovation, and Performance in Hotels in Angola

This paper aims to investigate the impacts of customer orientation, competitor orientation, learning orientation, technology orientation, and entrepreneurial orientation on hotel innovation and performance. Data from 69 hotels in four Angolan provinces were analyzed using the partial least squares (PLS) approach and multi group analysis. The results show that learning and entrepreneurial orientations have a positive impact on hotel innovation. As anticipated, innovation has a positive impact on performance. According to the multigroup analysis, only the hotel category has a moderating effect on performance. Results suggest that hotels in developing countries could add value to both customers and shareholders by promoting new services and exploring new business opportunities. To the best of our knowledge, this is one of the few studies that has researched the impact of strategic orientation on hotel innovation and financial performance in developing countries.