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Market Orientation in Universities: A Comparative Study of Two National Higher Education Systems

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Purpose The paper's purpose is to test: whether there are significant differences between England and Israel, in terms of perceptions of market orientation (MO) in higher education (HE); which MO dimensions (student, competition, intra‐functional) indicate more positive attitudes and whether the differences are significant; and the reliability of the instrument for using a larger sample of respondents internationally. Design/methodology/approach A comparative (online) survey of 68 academics in England and Israel was conducted during the academic year 2007. The MO questionnaire used comprises 32 factor items rated on a six‐point scale, categorised using three headings: market (student‐customer) orientation; competitor orientation; and inter‐functional coordination. Findings Overall, academics in both countries indicated that their HE institution is oriented towards meeting students' needs and desires, and cares for students' well‐being, teaching and learning. In addition, the respondents alluded to their contribution to internal marketing, i.e. to the promotion of their university through their own work tasks and performance. Research limitations/implications The study was restricted to a comparison of only two universities, one in Israel and one in England, and the sample size is small. Practical implications The meeting of student needs, and a student centred approach can be an institutional mission, as well as a government driven initiative imposed on universities through the introduction of a market. Originality/value As MO frequently underpins the development and implementation of successful organisation‐environment relationships, the current paper is a first attempt to trace the contextual determinants of this orientation by comparing its frequencies and elements in two different HE systems.
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Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
1
Market Orientation in Universities:
A comparative study of two national higher education systems
Abstract
Purpose: the reported study tested (1) whether there are significant differences between the
two countries, in terms of perceptions of market orientation (MO) in higher education (HE),
(2) which MO dimensions (student; competition; intra-functional) indicate more positive
attitudes and whether the differences are significant; and (3) the reliability of the instrument
for using a larger sample of respondents internationally.
Method: A comparative (online) survey of 68 academics in England and Israel has been
conducted during the academic year of 2007. The MO questionnaire used comprises 32 factor
items rated on a six-point scale, categorised using three headings: market (student-customer)
orientation; competitor orientation; and inter-functional coordination.
Findings: Overall, academics in both countries indicated that their HE institution is oriented
towards meeting students’ needs and desires, and cares for students’ well-being, teaching and
learning. In addition, our respondents alluded to their contribution to internal marketing, i.e.,
to the promotion of their university through their own work tasks and performances.
Practical implications: The meeting of student needs, and a student centred approach can be
an institutional mission, as well as a government drives initiative imposed on universities
through the introduction of a market.
Originality/value of paper: As MO frequently underpins the development and implementation
of successful organisation-environment relationships, the current paper is a first attempt to
trace the contextual determinants of this orientation by comparing its frequencies and
elements in two different HE system.
Keywords: Market orientation, educational marketing, Higher education marketing,
relationship marketing, international differences.
Type of paper: Empirical study
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
2
Introduction
The higher education market is now well established as a global phenomenon,
especially in the major-English speaking nations: Canada, the US, Australia and the
UK (Binsardi & Ekwulugo, 2003), where marketisation policies have been gradually
introduced (Jongbloed, 2003). Following the marketisation and deregulation of
universities in the UK (Middleton, 1996; Gibbs, 2001; Taylor, 2003) many
universities are now applying marketing theories and concepts that have been
successful in the business world to the HE context in an effort to gain a larger share of
the international market (Hemsley-Brown et al. 2006). It is widely assumed that in the
context of increasing competition, higher education institutions need to market
themselves more explicitly.
A crucial element in the marketing of HE institutions is based on a relationship
marketing (RM) approach, which is characterised as helping to develop and foster
interactions between the organisation and its customers (Brown et al., 1994). This
approach emphasises the importance of developing a customer- i.e. student-driven
organisational culture, and focuses on the quality of the service (Narver & Slater,
1990).
Above all, however, the RM approach commences with a commitment to marketing
orientation (MO), which is a set of beliefs that puts customers’ – students’ – interests
first, in order to gain a competitive edge in the highly competitive global environment.
MO frequently underpins the development and implementation of successful
relationship marketing strategies in any organisation (Helfert, Ritter, & Walter, 2002).
If a HE institution can develop or improve its degree of MO, then it should also be
able to achieve improved levels of RM.
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
3
This paper presents analysis of data gathered from an international study that
compared the degree of MO in two universities, one in Israel and one in England, two
countries that have experienced different HE policies in recent years. Thus, England
has established international markets in HE although marketisation is at a relatively
early stage (with undergraduate fees currently capped); in Israel there is no national
Quality Assurance Agency and every institution of HE has its own declared policy
aims, and is therefore still largely autonomous.
A published paper (Oplatka & Hemsley-Brown, 2007) previously presented the
Marketing Orientation Inventory for use in educational institutions, and the pilot study
findings (based on data from two countries) were later presented at the Academy of
Marketing Conference, Budapest, (Hemsley-Brown & Oplatka, 2007). Data and
findings from a study with a larger sample are presented in this paper.
As there is already some empirical evidence for the positive impact of MO on
industrial and service organisations (e.g. Cervera, Molla, & Sanchez, 2001; Guo,
2002), it seems of high value to examine the degree of MO in HEIs in general and in
different national HE systems, in particular because this kind of comparison could
provide some clues about the relationship between market-oriented HE policies and
the incorporation of MO in academic settings. Besides, whereas past research on MO
found that it is positively correlated with innovation, excellence, employees’ high
levels of satisfaction and commitment, customers’ satisfaction, and brand loyalty
(Pulendran, Speed, & Widing, 2003), HEIs have long been accused of neglecting
these important issues. Understanding the context of MO within HEIs is, therefore,
the first stage in attempting to increase this orientation in HE systems.
Based on an instrument developed by the authors to measure perceptions of MO in
universities, distributed by email to faculties in both universities, the reported study
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
4
tested (1) whether there are significant differences between the two countries, in terms
of perceptions of MO in HE, (2) which MO dimensions (student; competition; intra-
functional) indicate more positive attitudes and whether the differences are
significant; and (3) the reliability of the instrument for using a larger sample of
respondents internationally.
MO: A Key Element in Marketing the HE institution
Many managers today recognise that the ability to succeed in the marketplace requires
more than just sales techniques – customers rarely respond to sales pitch, but rather
they want their circumstances to be acknowledged and their needs to be satisfied.
Hence, business and service organisations seek to achieve a competitive advantage in
their dynamic environments, at least in part, by being market-driven, i.e., by
anticipating, understanding and responding to the preferences and behaviours of
customers (Jaworski & Kohli, & Sahay, 2000).
The marketing literature is replete with definitions and perspectives of MO, yet there
is much agreement about the key concepts (Helfert et al., 2002; Narver & Slater,
1990). At the core of this concept is the significance of customer orientation.
Accordingly, customers’ needs, desires and particular circumstances e.g. lifestyles
ought to be the main focus of the market-oriented organisation. In this sense, MO is
the degree to which an organisation generates and uses intelligence about the current
and future needs of customers; develops a strategy to satisfy these needs; and
implements that strategy to meet those needs and wants.
MO takes into account the influence of competitors and incorporates inter-functional
coordination. It encourages the generation of intelligence – or the use of data about
competitors, and integrated cross-functional processes, in addition to the execution of
a strategic organisational response to market opportunities. All these activities are
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
5
directed towards creating and satisfying customers through continuous needs-
assessment.
MO is a set of beliefs that puts customers’ interests first, but at the same time raises
the HEI’s awareness of the need to obtain information about competitors and establish
cross-departmental activities to satisfy customers’ needs, in order to gain a
competitive edge in the turbulent, competitive environment. Based on the works of
Narver and Slater (1994) and Oplatka and Hemsley-Brown (2007) the following three
related components of MO are suggested, and are underpinned by shared values and
beliefs, which may help HEIs administrators, managers and faculties to understand the
HEI and its environment, and may also provide them with norms for behaviour. The
present study focuses on MO at a faculty level and comprises three dimensions:
(a) Customer orientation: Faculties are assumed to understand the HEIs’ targets
market thoroughly, and be capable of creating and providing superior value, over
time. A faculty that subscribes to this approach in practice would collect information
about the environment which students inhabit (e.g. lifestyle factors); would adapt
teaching methods to accommodate students’ particular needs; and would be attentive
and responsive to their interests and points of view. Through this approach, it would
then be possible to be more innovative and implement improvements for future
students based on their anticipated needs.
(b) Competitor orientation: The HEI and Faculty managers who aim to fully
understand the strengths and weaknesses, as well as the capabilities and potential, of
competing HEIs, seem to internalise this element of MO. Awareness of the
importance of competitor activity and the monitoring of developments in competing
HEIs can have a positive impact on decision-making, particularly through the
development of initiatives: the development of additional services for students.
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
6
(c) Inter-functional coordination: The core belief which needs to be shared by all
members of the HEI is that creating superior value for target customers is very
significant for the success of a HEI in a competitive marketplace. This can only be
achieved, however, through the integration and coordination of the HEI’s resources.
Attracting student-customers and sustaining recruitment should not be solely the
responsibility of faculty management, but is the responsibility of everyone in the
university community. Faculties should have full access to information about the
competition: the market environment, the community and so forth in order to achieve
this.
The first two elements of MO indicate a relative emphasis on collecting and
processing information pertaining to customer preferences and competitor
capabilities, respectively. The third element encompasses the coordinated and
integrated application of organisational resources to synthesise and disseminate
market intelligence, in order to put processes in place to build and maintain strong
relationships with customers. It is the aim of this study to check the extent to which
every element appears in the two chosen countries. The contexts of HE in each
country is discussed in the following sections.
Higher Education in the UK
There are approximately 325 HE institutions in the UK including universities,
colleges of higher education and further education colleges that offer HE courses
(UCAS, 2008). (This figure includes all types of institutions offering HE; the Sherpa
organisation (2008) states that there are 170 universities in the UK, 150 of which took
part in the annual National Student Survey of final year undergraduates) UK
universities tend to target three broad market segments, namely, national 18-19 year
old school leavers; local mature students, and international students (Veloutsou, et al.,
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
7
2005). International students are of particular importance as they provide a major
stream of income for the universities (Russell, 2005) aside from government funding.
The interest in marketing within the HE sector in the UK largely results from first,
concerns over recruitment in UK universities particularly at post graduate level, and
an endeavour to seek other sources of revenue (Tao, 2005). Second, the concern in
the UK over financial constraints imposed on universities by central government
policies and third, the additional difficulty of falling rolls (Kinnell, 1989) has resulted
in many UK universities facing the same challenges: having to compete for students
in a fierce marketplace (Veloutsou, et al., 2005). In addition to these concerns, at
undergraduate level The National Student Survey (NSS) introduced in 2005, now
directly affects university league tables in the UK and therefore the emphasis on
responding to student needs, and on gaining good scores for the teaching and learning
aspects of the HE experience, have rapidly become more important than ever for all
universities (Hemsley-Brown and Kolsaker-Jacob, 2008).
Furthermore, for around two decades, the British government has been actively
encouraging education institutions to recruit international students, who provide a
substantial boost to the national economy. A year-on-year growth in the number of
enrolled HE international students in the UK increased from 2.5 per cent between
1998/1999 and 1999/2000 and 5 per cent between 2000/2001 and 2001/2002. In June
1999, the UK Government launched an initiative to attract an additional 50,000
international students to UK higher education by 2005 and to win market share from
its major competitors identified as the US and Australia (Russell, 2005). According to
Gordon Brown’s budget speech in 2006 there was an aim to sign new education
partnerships with India, Russia, South Africa and China to treble education exports
and make Britain more attractive to overseas students (Guardian Unlimited, 2006).
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
8
The UK Government is also committed to widening participation in higher education
and to achieve fair access to HE by putting in place a more competitive market to
encourage universities to open their doors to all those who could benefit. In England,
the Government plan is to achieve a 50% participation rate of 18-30 year olds in
higher education by 2010 (HEA, 2008). The costs of this exercise mean that
universities are becoming more market oriented, and more student focused
particularly since the introduction of tuition fees. The introduction of undergraduate
tuition fees has contributed to a growing number of students taking a consumer-like
approach to their time at university. In England, 94% of higher education institutions
are charging the full £3,000 higher level fee. Investment in financial support for
students from low incomes and other underrepresented groups is estimated to reach
nearly £350m by 2010, which is over 25% of the additional income raised by higher
level fees (DfES, 2007). From the end of 2008, universities are in receipt of tuition-
fee revenues from three consecutive cohorts of undergraduate students. For larger
universities, this will amount to over £50 million in income direct from students –
money that can be used to enhance services, invest in facilities and support social
inclusion (Hemsley-Brown and Kolsaker-Jacob, 2008). The market in higher
education in the UK, particularly England has therefore been enhanced considerably
over the past three years, causing a substantial change of culture towards a more
market driven culture. The market is expected to continue to grow in response to
changing student demand, and to respond to the diversity of market (Universities UK,
2008).
Higher education in Israel
The HE system of Israel is relatively young, beginning in 1925, the times of the
British Mandate in Palestine, subsequent to the establishment of the Hebrew
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
9
University of Jerusalem and the Technion in Haifa, both were strongly influenced by
the Germanic tradition of HE. After the establishment of the state of Israel, the
increase in population, as well as economic and social developments, led to a demand
for HE and, in response, five new universities were established during the 1950s and
1960s, two in the centre, one in the North, and one in the South. A decade later the
Open University was founded.
During the 1990s there was an additional stage of development and diversification in
the HE system, when the 10
th
amendment to the Council for Higher Education (CHE)
Law made possible the opening of various academic colleges: general colleges,
technological colleges, and colleges devoted to one profession or discipline (e.g.
teacher training colleges). This policy change was partially a response to the
increasing demand for HE due to growth in high school graduates and the anticipated
wave of Jewish immigrants from the former Soviet Union (Yogev, 2007). A further
innovation was the introduction of the extra-budgetary status: some of the new
colleges are not publicly supported or budgeted by and government or State agency.
One unexpected result of this amendment was the greater involvement of a large
number of universities that formed partnerships with private colleges and educational
entrepreneurs in Israel in order to respond to the demand in what was, for overseas
providers, a ‘free’ market (Lieven & Martin, 2006). Due to critical reports and public
concern against the low quality of many partnerships, the government of Israel
responded in 1998 by amending the 1958 CHE Law, thereby significantly reducing
the number of foreign operators, and imposing restrictive practices in the bureaucratic
procedures involved in applying for a license (Lieven & martin, 2006). This
legislation was followed by a decline in the numbers overseas providers in Israel.
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
10
The expansion of the system seems to answer the increasing needs of the market,
especially on the undergraduate level and the professional master programs (e.g.
MBA, educational management). Sara Guri-Rosneblit (1996), one of the consistent
critics of the traditional system has argued:
HE in Israel in the last 15 years has gradually moved from a highly selective, elite and
research-oriented system to a mass HE system in which academic tertiary education is
perceived by many as a right rather than a privilege" (p.336).
Yet, the policy introduced in early 1990s which favoured the accreditation of
undergraduate studies at new and upgraded colleges resulted in a sharp decline in the
numbers of university applicants and university freshmen (Yogev, 2007). Despite this
the demand for HE has proven to be one of the highest per capita in the world (Geva-
May, 2001), the CHE's decision to freeze the growth of university freshmen and to
penalise, from a budgetary point of view, universities growing beyond their scheduled
freshmen intake, brought about some financial problems in the old universities and
calls for governmental intervention to 'save' the HE system.
Today, the HE system in Israel comprises 8 universities, twenty-seven academic
institutions that are not universities, twenty-seven academic institutions for the
training of teachers, and a number of academic programs at regional colleges, for
which universities are academically responsible. This structure, according to Yogev
(2007), generated a stratified system, which is divided into two groups of institutions:
The three old, elite universities which are highly selective and well-known for striving
to achieve academic excellence (The Hebrew University, the Technion, and Tel Aviv
University), and the new, sometimes peripheral universities founded in late 1960s and
during 1970s (Haifa University, Bar Ilan University, and Ben Gurion University). The
non-university institutions are at the bottom of the hierarchy.
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
11
In 2005, the total number of students excluding those from the Open University
reached 205,149, with 82,139 students in colleges (including teacher training
academic colleges) and 123,010 students in universities (Undergraduate – 76,815;
Masters, 35,020, PhD, 9,835, and Diploma, 1,340). The main source of students is
high school matriculation graduates, students who have succeeded in pre-academic
programs, and new immigrants. The total of tenured track university faculty was
4,949 (Central Bureau of Statistics, 2006).
For the purposes of this study, some words on the CHE are warranted. The CHE
began to operate as an advisory committee entrusted to counsel the government on the
development and funding on HE, following the Council for HE Law 1958 and is a
statutory body recognised for all obligations, rights and legal action. The council is a
public body of academics and community leaders appointed by the president of Israel.
HE is under the direct jurisdiction of the CHE, which is the sole responsible for
accrediting and authorising institutions of HE to award degrees. It is this jurisdiction
which distinguishes the HE system from the post-secondary education system which
does not lead to an academic degree. The chairman is ex-officio, the minister of
education, and the council is composed of 19-24 members personally appointed by the
President of the state on the recommendation of the government. Their term of
appointment is five years.
The institutions of HE are autonomous in the conduct of their academic and
administrative affairs within the framework of their budgets. Most of them are
supported by public funds, which account for well over two-third for their total
recurrent budgets, which the tuition and student fees cover about 20 per cent. The
main powers of the CHE are to grant an institution permission to open an institution
of HE and to maintain it, but the final decision is of the government. It also has the
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
12
authority to grant accreditation to an institution as an institution of HE, and to
authorise an accredited institution to award academic degrees. In addition, through its
executive arm – the Planning and Budgeting Committee (PBC), it is also responsible
for funding and planning. The functions of PBC are to propose the regular budget and
the development budget for HE, while taking into consideration the needs of society
and the State, while safeguarding academic freedom and assuring the advancement of
research and learning. It is also responsible for the promotion of efficiency in the
institutions of HE and for the coordination among them (CHE, 2006).
To sum up, then, there is no national Quality Assurance Agency in Israel and every
institution of HE has its own declared policy aims (e.g., number of Undergraduate
students, research, faculty qualification, publications). Yet, the PBC has its own
criteria for budgeting (e.g., the amount of research funds endowed to faculty, number
of PhD students), and the CHE is entitled to evaluate current programs in terms of
curriculum, faculty, student outcomes, student-staff ration and the like). Geva-May
(2001) found that a major indicator for efficiency is considered student population
growth and enlargement of faculty, research output, and the ability to affect student
growth by answering market needs. Note that despite the freedom of individual HE
institutions to determine the balance between teaching and research, the PBC's
'productivity' formula, in which the PBC evaluates the scope and quality of research,
is used to determine budgetary allocation.
Methodology
In pursuit of the research answers, the authors conducted a comparative (online)
survey of academics in England and Israel during the academic year of 2007.
Criteria for the selection of participants. The researchers contacted a stratified random
sample of academics (based on faculty staff lists) by email from within one UK
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
13
university and one Israeli university, asking them to complete an on-line
questionnaire. Ethical approval was granted as required by the English University and
access to email lists was easily available. Following analysis of the pilot study data
(Hemsley-Brown and Oplatka, 2007) sample size calculations indicated that the
minimum sample size for the study should be 50 participants: the final sample for this
study was 68. The researchers sought to collect more than 50 completed
questionnaires, and then cleaned the data by excluding questionnaires with incomplete
responses. Several academics embarked on the survey but stopped part of the way
through, and these were discarded before the analysis. All institutions and individuals
remain anonymous as required by the Ethics Committee of the English university.
Ethical protocol dictates that subsequent publications would not give names of
institutions or individuals involved. Participation by individual respondents was
voluntary.
Research design and methods. As the theoretical introduction of this paper shows, the
theory of MO has three components; customer (student) orientation (SO), competitor
orientation (CO), and inter-functional coordination (IFC) (Narver & Slater, 1990;
Helfert, Ritter, & Walter, 2002). Semantic differential multiple-item scales were
constructed to measure these components, and results of a pilot have already been
presented to an international conference. The MO questionnaire comprises 32 factor
items rated on a six-point scale, categorised using three headings: market (student-
customer) orientation; competitor orientation; and inter-functional coordination. Tests
to measure the reliability of these three constructs and the whole questionnaire were
conducted during the pilot stage. The pilot study provides evidence that the
constructs are reliable, with Cronbach Alpha scores above .8: Total Market
Orientation (32 items), 0.92; Customer Orientation (18 Items), 0.832; Competition
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
14
Orientation (6 Items) 0.842; and Intra-functional Orientation (8 Items), .816.
Summative scores and mean scores were calculated for each respondent for each
component and are used for hypothesis testing.
The researchers avoided using the word “market” or “marketing” in the questionnaire
itself because it has other connotations and associations for the respondents. The word
marketing is often assumed by those who do not study marketing to mean “selling”
and “advertising” and could mislead the respondents. The online survey therefore,
uses the phrases “International HE Survey” and focuses on “Student Orientation”
rather than “market orientation”. The items are drawn from factors identified in the
literature on theories of market orientation.
The instrument was written in English and not translated into Hebrew, because Israeli
academics are familiar with English, and conduct much of their academic work and
publications in English. Anonymity was assured and participation was voluntary in
both countries. SPSS software is used for analysis, and data were downloaded as an
Excel file from the web-based on-line survey website.
Analysis of data. The achieved useable sample for further analysis is 68
questionnaires: 36 from England and 32 from Israel. Email links to the online survey
questionnaire were sent to all social science academics from both universities, and one
reminder was sent. The majority of academics were from Education Studies and
Business Management: 38 are male and 30 are female. The authors acknowledge that
the final sample is not large, but is nonetheless sufficient for conducting a study –
Pallant (2005) argues the 30 respondents in each group (in this case England /Israel) is
sufficient and the pilot study (Hemsley-Brown & Oplatka, 2007) indicated that based
on sample size calculations 50 respondents would be the minimum sample size
needed for further research. The following research hypotheses were formulated:
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
15
H
1
– Academics from a university in Israel and academics from a university in
England show differences in perceptions of the market orientation of their university.
H
2
– There is a difference between the mean scores academics award for the three
components of MO (showing academics are more positive about one/two components
of MO than other components)
In order to verify the constructed hypotheses and because of the character of the
research, we analysed results using SPSS Version 15 for Windows.
Findings
Prior to the presentation of the data gathered through the e-inventory, some
background information to provide a profile of the respondents is warranted. Of the
68 respondents, 38 (55.9%) are male and 30 (44.1%) are females, 36 (52.9%) live and
work in England, while 32 (47.1%) live and work in Israel. As to years at work, 13
respondents (19.1%) are less than 5 years into their academic career, 11 respondents
(16.2%) have worked for 6 to 10 years; 20 (29.4%) for 11 to 20 years; and 24 (35.3%)
respondents have worked at their institution for over 20 years.
Forty-four percent of the sample academics are from the Social Sciences, which
includes Education, Business and Management, Sociology, and Psychology, but a
wide range of disciplines are represented. Just over a quarter of respondents are from
the Education discipline (26.5%). Academics in the study, however, work in a wide
range of disciplines including: Medicine, History, Architecture, Creative Arts,
Mathematics, Computing or related disciplines; Veterinary Science, Physical
Sciences, Engineering, and Communications. A normality test was carried out using
the total MO score as the dependent variable, and country as a factor. The
Kolmogorov-Smirnov statistic is 0.2 for both nationalities and therefore we use
parametric testing.
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
16
Customer orientation items
The construct to measure customer (student) orientation comprises 18 items.
Universities from both of the countries measure student satisfaction every academic
year using a module or course evaluation questionnaire – this item gained the highest
mean score: 5.2 on a 6 point scale. (This item could have been a Yes or No answer –
either the university does measure student satisfaction every year, or it does not, but
clearly both universities do conduct student satisfaction evaluation surveys.)
Table 1 Summary of Mean Scores for Customer Orientation Construct items
(n=68)
Student (Customer) orientation item Mean
University measures students’ satisfaction every academic year 5.2206
University cares about students’ well being 4.3971
University understands the needs of students
4.2941
Complaints by students are dealt with quickly 4.2500
The complaints procedure is easy for students to access 4.2353
The complaints procedure is easy for students to understand. 4.2206
Students are given information that helps them to understand what to
expect from this university
4.1471
Staff in this university are eager to support students and go beyond their
role definition
4.1029
Students’ feedback on their experiences influence the teaching and
learning process
4.0294
Staff are attentive to students’ concerns 4.0000
We encourage students to offer constructive positive comments 3.9265
Staff are regularly provided with information about students’ views and
experiences
3.8382
The university understands what kind of teaching and learning the
students value most
3.7794
We encourage students to offer constructive negative feedback 3.7647
Responding to students’ needs is my major task 3.7447
A good teacher is one whose students are happy as satisfied 3.5941
The university meets and goes beyond the promises it makes to students 3.4194
Senior staff promote the spirit of customer orientation and focus 3.2006
The variations may indicate that a few academics are unsure about this e.g. where the
evaluation is carried out by others such as administrators. Academics also believe that
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
17
the universities care about the students’ well-being (4.4); the university understands
the needs of students (4.3) and complaints by students are dealt with quickly (4.2).
The lowest mean score was for “promoting the spirit of customer orientation and
focus” (3.2) – perhaps colleagues in universities do not believe they are currently
doing this very well. A full list of the mean scores for each item is provided in Table
1 .
Competition orientation items
The construct to measure orientation towards competition comprises 6 items and is
labelled External Orientation on the on-line survey. Academics from both countries
believe that their universities compare favourably with other universities in terms of
meeting students’ needs (3.97), however, they were modest about this and give a
lower score to the statement that “this university understands the needs of students
better than other universities” (3.31). In other words, academics believe their own
university compares favourably, but they do not claim they are better than competitor
universities. A full list of the mean scores for each item in the competition orientation
construct is provided in Table 2.
Table 2 Summary of Mean Scores for Competition Orientation Construct items
(n=68)
Competition Orientation Mean
This university compares favourably with other universities in
meeting students’ needs
3.97
Information about what my colleagues in other universities are
doing helps me in my role
3.8824
Senior managers often refer to the actions of other universities 3.6029
The majority of staff take an interest in what’s going on in other
universities
3.4412
This University usually responds positively to other universities’
new initiatives and developments
3.3676
This university understand the needs of students better than other
universities
3.31
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
18
Intra-functional orientation (Internal Marketing) items
There are 8 items measuring intra-functional orientation, or internal marketing – given
the title of “Internal issues” on the questionnaire. This construct attempts to measure
academics’ perceptions of their internal mechanisms and whether they focus on
student-customers, particularly staff involvement in marketing. The highest mean
score is for discussing student concerns, and making improvements (4.1) followed by
two items relating to academics’ input into attracting prospective students (4.01) and
cooperating to promote the university’s image (3.7) (see Table 3). It is clear from this
perhaps that academics do believe they contribute to the internal marketing although
they give lower mean scores to market-led curriculum development and initiatives
(3.23) and in particular, for the item: “current students are always central to decision-
making in this university” (2.97). It seems feasible that academics might not give
high ratings to the latter since both universities are research-focused and many of the
decisions at the universities would not be based on students’ concerns.
Table 3 Summary of Mean Scores for Intra-functional (Internal Marketing)
Orientation Construct items (n=68)
Intra-functional Orientation Mean
In meetings we discuss information about students’ concerns
in order to make improvements
4.1029
Academics help to attract prospective students 4.0147
Academic staff cooperate to promote the university’s image 3.7059
Administrative staff cooperate to promote the university’s
image
3.6863
All faculties and departments contribute to the marketing of
the university
3.5672
The guiding light in curriculum development or new initiatives
is the demands of the students
3.2374
Marketing information is discussed and shared with academic
staff
3.1716
Current students are always central to decision-making in this
university
2.9706
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
19
Comparison between Israel and England perceptions of MO
Independent samples t-tests were conducted to compare the mean scores on the MO
items grouped into the three constructs: customer orientation; competitor orientation
and intra-functional orientation, as well as for MO as a whole (32 items). There was
no significant difference between the two nationality groups in terms of items related
to MO as a whole (.46); customer orientation (.29); or intra-functional orientation
(.29).
However, the result of the t-test in relation to competitor orientation shows that there
is a significant difference between Israel and England. Israeli academics show more
positive responses – i.e. more agreement with the statements, and more agreement
between respondents. Among academics from England, the responses are less
positive and slightly more polarised. There is only a marginal difference – 0.5 is
considered significant and score is 0.48 – but nonetheless, the difference is
statistically significant. The group statistics for each construct are provided in Table
4.
Table 4 - Group Statistics for Market Orientation
Country N Mean
Std.
Deviation
Std. Error
Mean
Total MO Israel 32 3.8762 .62303 .11014
England 36 3.7604 .67322 .11220
Customer
Orientation
Israel
32 4.1016 .70544 .12470
England 36 3.9210 .69062 .11510
Competitor
orientation
Israel
32 3.7833 .64068 .11326
England 36 3.4375 .75917 .12653
Intra-Functional Israel 32 3.4483 .70480 .12459
England 36 3.6547 .89624 .14937
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
20
Following these findings a Mann Whitney test (the non-parametric test used with
ordinal data) was conducted to identify the differences between countries for each
individual item. The significant difference between Israel and England in terms of
Competition Orientation is based on the more positive attitudes of Israel academics
regarding the items “The Faculty/School understands the needs of students better than
other universities” and “The University as a whole compares favourably with other
universities in meeting student needs”. This could be based on the relative market
positions of the two universities, but suggests slightly greater confidence in the
strengths of their institution in terms of understanding and meeting student needs,
among Israeli academics.
One-way between groups analysis of variance (ANOVA) was conducted to test
whether there was a significant difference between the mean scores for each construct
(customer orientation; competitor orientation or Intra-functional orientation). For
example – were academics more positive about one of these aspects of MO than the
others? The results showed that there was a statistically significant difference at the
p<.05 level in the scores for the three different elements of MO. Post-hoc
comparisons using Tukey HSD test indicated that the mean score for “customer
orientation” (Mean=4.0, SD=0.69) was significantly different from perceptions of
competitor orientation and intra-functional orientation. Student orientation scores are
more positive; both competitor orientation and intra-functional orientation are close to
the midpoint on the semantic differential scale (3.55 and 3.6 respectively).
Academics also believe that the universities care about the students’ well-being (4.4);
the university understands the needs of students (4.3) and complaints by students are
dealt with quickly (4.2).
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
21
Discussion
With two conjectures in mind – that increased inter-institutional competition in the
HE sector may result in greater attention to marketing and public relations (Hemsley-
Brown et al. 2006), as well as in the development of a student-driven organisational
culture in HE institutions (Narver & Slater, 1990) – we compared the extent of MO
among academics from two different HE settings. As these two arenas differ in the
level of their HE marketization, accountability and privatisation, we postulated that
the degree of MO among academics in the two arenas would differ. Put simply, in a
highly competitive environment it is likely that the attraction of new student-
customers would be the responsibility of every member in the organisation, including
academics. They will adopt a customer-oriented viewpoint, and will be engaged in the
marketing processes of their institution.
Overall, academics in both countries indicated that their HE institution is oriented
towards meeting students’ needs and desires, and cares for students’ well-being,
teaching and learning, a stance that is compatible with the common image of the
university as a place of student growth and development well-rooted in the historical
tradition of the western university (Boyer, 1982). Note, in addition, that our
respondents refrained from claiming any competitive edge for their university over
other universities, perhaps due to the ethics of education which is inherently against
marketing and any notion of inter-institutional competition. This might be related to
the academics’ commitment and professional ethic in caring for his/her students, in
developing skills and competencies, regardless of any inter-institutional competition
(Coser, 1971). Thus, in spite of strong inter-institutional competition in HE, the strong
professional culture of academics which emphasises pure research, teaching and
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
22
customer-care (service) seems to structure the respondents’ attitudes towards MO
more than any neo-liberal views of HE.
As far as the marketing-like role of the academics is concerned, our respondents
alluded to their contribution to internal marketing, i.e., to the promotion of their
university through their own work tasks and performances. This sort of data tends to
align with school teachers’ attitudes towards their role in the marketing of their school
(Oplatka & Hemsley-Brown, 2004; Oplatka, 2006). Thus, as academics are expected
to conduct research, publish, and then convey their knowledge to students through the
design of new courses and participating in curricular innovations (Cardozier, 1987;
Coser, 1971), our respondents view the effective performance of these tasks as their
contribution to their HE institution.
Notably, the academics identify their role in marketing activities as emerging through
their obligation to promote effective teaching and conduct high-value research, two
traditional aspects of the professoriate (Wolff, 1969). This goes hand-in-hand with
one fundamental, essential factor underlying the marketing philosophy: improved
performance. It is assumed that educational markets will drive up HEIs performance
through competition for students and the quality of teaching and research will be
raised (Tooley, 2000; Waldford, 1994).
However, the respondents reject the notion of market-led curriculum development and
initiatives, perhaps because this kind of action stands in stark contrast to fundamental
beliefs about HE as an arena in which the knowledge is produced for its own sake and
for the sake of the society as a whole (Boyer, 1982). Similar to schoolteachers
(Oplatka, Hemsley-Brown, & Foskett, 2002), they seem to oppose any involvement of
academics in direct marketing activities or in commercialise the academic knowledge
for external purposes such as the recruitment or retention of students.
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
23
What has come to light also is the distinction between English and Israeli academics
in respect to marketing and their own role in the process of recruitment and retention
of students. Broadly, Israeli academics express more agreement with the statements,
and more agreement between respondents, i.e. many of them advocate the role of the
university and the faculty in supporting student development, as well as assume that
their own university prioritises student needs and concern more than other universities
in Israel. This distinction may be accounted for by the position of the Israeli university
as a niche university (Yogev, 2007) which pushed its founders in the 1970s to
strengthen the student-oriented image in order to attract prospective students rather
than attempting to build an image of ‘excellence in research’ which has long been
associated with older universities. This image seems to have been thoroughly
internalised given the beliefs of the Israeli respondents in this study.
To sum up, both English and Israeli academics still adhere to traditional
conceptualisations of the professoriate according to which a central part of the
academic’s role is to equip students for the work of inquiry (Boyer, 1982; Veblen,
1971). Thus, whereas more focus is assumed to be given by the contemporary
academic to the organisational aspects of the HEI and its outcomes rather than merely
to his/her own research and teaching, our respondents challenged this view in relation
to marketing and promotion, giving an impression that issues of the HEI as an
organisation are not necessarily part of the academic’s role.
Implications
The findings from the study indicate that a focus on students’ needs (customer
orientation) is strong in both institutions, despite the differences in HE marketization
in the two countries, and the historical development of HE in the two countries. The
meeting of student needs, and a student centred approach can be an institutional
Hemsley-Brown J.V. and Oplatka, I. (2010) Market Orientation in Universities: A comparative study of two
national higher education systems, International Journal of Educational Management, 24, 3, pp204-220.
24
mission, as well as a government drive initiative imposed on universities through the
introduction of a market. Secondly, in Israel where there is little pressure on HEIs to
be competitive compared with England, academics were more confident in the
capabilities of the university to meet student needs effectively compared with
competitor universities. Although it would be tempting to imply that the non-
competitive environment contributes to this institutional confidence, it is possible that
the ethos of the two sample institutions has also contributed to this difference. It is a
limitation of this study that only two institutions were sampled and therefore external
validity is somewhat low. The findings from the study, however, indicate that first,
the instrument or e-inventory for MO is robust enough to justify further research; and
secondly that a further study might draw on a larger sample of academics from a
sample of universities in different countries.
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Inter-functional coordination is one of the market orientation components which is based on the the customer and competitor information entailing a business’s coordinated efforts involving not only marketing department, but all the organizations’ departments and resources in order to create superior value for customers.  The main purpose of the study was to analyse the relationship between inter-functional coordination on performance of universities in Kenya.  The philosophical foundation of this study was positivism.  Descriptive and correlation designs design was adopted for the study. The target population for this study was 63 universities in Kenya.  A total of 115 respondents who include 3 staff and 2 students were selected from a sample of 23 universities. Both stratified sampling and purposive sampling were used in selecting respondents from the population. A structured questionnaire, administered through drop and pick was used in collecting data. Descriptive and inferential statistics were used in analysing data through the multiple linear regression by using of Stata software, SAS System and Statistical Package for Social Sciences. The relationship between market orientation and university performance were analysed using correlation analysis. The analysed data was presented in frequency tables, pie charts, graphs and percentages. The results show that there was a significant positive relationship between inter-functional coordination and university performance at 1% level of significance respectively. This mean that the independent variable inter-functional coordination was significant in performance of universities. The study concludes that universities in Kenya were market oriented through inter-functional coordination. Implying that that inter-functional coordination is an important market orientation concept that needs to be adopted and implemented by universities in Kenya. This study recommends that universities in Kenya should make an effort and focus more on ensuring smooth flow of communication and sharing of information across all the university’s departments. The university management need to know that their institutions would perform well if they develop inter-functional coordination capabilities that will support competitive behaviour of innovativeness.
... It has been deployed across multiple contexts and reasoned arguments to variously represent complexity, diversity, opportunity, growth, neo-liberalism and the malaise of the modern higher education institution (see, e.g. B€ orjesson and Dalberg, 2021;Hemsley-Brown and Oplatka, 2010;Holmwood and Marcuello Servos, 2019;Laurillard and Kennedy, 2017). ...
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