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Does Competitive Environment Moderate the Market Orientation-Performance Relationship?
Abstract
Recent studies have shown evidence of a positive relationship between market orientation and performance. However, some scholars have suggested that competitive environment could moderate this relationship. The authors investigate how competitive environment affects the strength of the market orientation-performance relationship and whether it affects the focus of the external emphasis within a market orientation—that is, a greater emphasis on customer analysis relative to competitor analysis, or vice versa, within a given magnitude of market orientation. Their results provide very limited support for a moderator role for competitive environment on the market orientation-performance relationship. The benefits of a market orientation are long term though environmental conditions are often transient, and thus being market oriented is cost-effective in spite of any possible short-term moderating effects of the environment.
... Una actitud organizativa positiva hacia la incertidumbre mejora la relación entre la orientación al mercado y el desarrollo de nuevos productos en mercados inciertos Fortalecer la orientación al mercado aumenta la innovación y desempeño a través del conocimiento La orientación al cliente y a la competencia anteceden positiva y significativamente el desempeño Fuente: Elaboración propia con base en información de la revisión de literatura En la orientación al cliente se busca crear un valor superior para los clientes. Se orientan a la disposición continua y proactiva para satisfacer las necesidades y preferencias de los clientes actuales y futuros (Han et al., 1998;Slater & Narver, 1994). Para la creación de valor, las empresas deben conocer a sus competidores, identificarlos, saber qué ofrecen e identificar si representan una alternativa para el cliente objetivo; con estas acciones se define la orientación a la competencia (Han et al., 1998;Slater & Narver, 1994). ...
... Se orientan a la disposición continua y proactiva para satisfacer las necesidades y preferencias de los clientes actuales y futuros (Han et al., 1998;Slater & Narver, 1994). Para la creación de valor, las empresas deben conocer a sus competidores, identificarlos, saber qué ofrecen e identificar si representan una alternativa para el cliente objetivo; con estas acciones se define la orientación a la competencia (Han et al., 1998;Slater & Narver, 1994). De acuerdo con Narver y Slater (1990), la orientación al cliente y a la competencia involucran acciones y actividades que permiten adquirir información sobre los clientes, competidores y mercado meta, así como la implementación de estrategias para la difusión de esta información en toda la empresa o como coordinación interfuncional, en la cual la empresa coordina los esfuerzos para crear de manera eficiente valor superior para los clientes (Narver & Slater, 1990;Slater & Narver, 1994). ...
... Para la creación de valor, las empresas deben conocer a sus competidores, identificarlos, saber qué ofrecen e identificar si representan una alternativa para el cliente objetivo; con estas acciones se define la orientación a la competencia (Han et al., 1998;Slater & Narver, 1994). De acuerdo con Narver y Slater (1990), la orientación al cliente y a la competencia involucran acciones y actividades que permiten adquirir información sobre los clientes, competidores y mercado meta, así como la implementación de estrategias para la difusión de esta información en toda la empresa o como coordinación interfuncional, en la cual la empresa coordina los esfuerzos para crear de manera eficiente valor superior para los clientes (Narver & Slater, 1990;Slater & Narver, 1994). La aplicación de la orientación emprendedora en contextos de pequeños negocios ha diferido en sus hallazgos sobre la manera en que la orientación al cliente, orientación a la competencia y la coordinación interfuncional impactan en los resultados organizacionales. ...
Las limitaciones de movilidad por la pandemia del covid-19 afectaron diversos sectores económicos, entre ellos el turismo. En Oaxaca, las ventas de artesanías cayeron significativamente por la baja afluencia de turistas. El objetivo de la investigación fue describir las prácticas de orientación al mercado que implementaron los negocios de artesanías en Oaxaca, para sobrevivir a la pandemia del covid-19. Se encuestaron 92 negocios de artesanías que operaron durante la pandemia. Mediante un análisis factorial exploratorio y análisis de varianza, se encontró que las mejores prácticas de los negocios fue la orientación al cliente, usaron el comercio electrónico, coordinaron actividades siguiendo las medidas sanitarias, algunos despidieron empleados y otros redujeron jornadas laborales y cerraron locales para reducir gastos. La diferencia estadísticamente significativa fue entre la edad, escolaridad y antigüedad con la orientación al cliente. La digitalización fue un reto para los negocios que operan en contextos, donde la brecha digital es preponderante.
... The examination results of Hypothesis H7 indicate that environmental uncertainty negatively moderates the impact of market orientation on entrepreneurial performance. This conclusion contrasts with previous findings by Jaworski et al. 53 , Slater et al. 109 , and Qu et al. 110 , who consistently demonstrated that the positive influence of market orientation on entrepreneurial performance remains unaffected by environmental variables. The emergence of this discrepancy primarily stems from the fact that those studies failed to incorporate any antecedent variables, instead solely examining the direct effects of market orientation on entrepreneurial performance without delving into the nuanced breakdown of its influence. ...
... While market orientation aims to facilitate the understanding and fulfillment of customer needs, heightened environmental uncertainty exposes firms to complex and ambiguous market signals. This implies that, even though market orientation can enhance entrepreneurial performance, the rapidly evolving external environment may hinder firms from accurately capturing customer demands, thereby diminishing the effectiveness of performance enhancement 109 . Secondly, environmental uncertainty can instill hesitancy in firms when implementing market-oriented strategies, impeding the execution of effective market orientation tactics. ...
... By explicitly outlining the relationships among entrepreneurial orientation, market orientation, entrepreneurial performance, and environmental uncertainty, this research enriches the findings in the field of entrepreneurship. From a strategic management theory perspective, integrating these variables aids in identifying the basis upon which enterprises can select appropriate strategies under varying environmental conditions, thereby enhancing their competitiveness 109 . Second, It enhances the theoretical understanding of environmental uncertainty. ...
In the current complex economic environment, entrepreneurial enterprises, as a crucial force in China’s economic transformation, have vital survival and development strategies. This study is grounded in resource-based theory, integrating strategic management and contingency theories. It establishes a theoretical model based on the influence pathway of “entrepreneurial orientation—market orientation—entrepreneurial performance”, incorporating environmental uncertainty as a moderating variable. The research focuses on entrepreneurial enterprises in the industrial, agricultural, and service sectors, specifically those established within the last 8 years. Through empirical analysis of 303 samples from Hubei Province, China, it is found that entrepreneurial orientation actively promotes market orientation and positively impacts entrepreneurial performance through market orientation. Environmental uncertainty plays a dual role in this process by enhancing the positive effects of entrepreneurial orientation on market orientation and entrepreneurial performance, while weakening the direct effect of market orientation on entrepreneurial performance. This suggests that in uncertain environments, entrepreneurial enterprises need to strengthen entrepreneurial orientation to adapt flexibly to market changes, while considering various strategic factors to enhance performance. This study provides theoretical support and practical guidance for entrepreneurial enterprises in turbulent markets in strategic decision-making.
... Crick & Crick, 2016). Not least (and relating to uncertainty), market dynamism may create a sense of 'unknowing' about how buyers will interact with current and future products and services associated with EMO behaviours (Jaworski & Kohli, 1993;Lim, 2023;Slater & Narver, 1994). As an illustration, the impact of the COVID-19 pandemic created problems for many businesses regarding how decision-makers were allowed to (under evolving legislative constraints) strive towards creating enduring value for their customers. ...
... Second, SMEs' performance was operationalised on a seven-point interval scale, with four items (focusing on growth factors), ranging from -decrease more than 10.00% to increase more than 10.00% (Eijdenberg et al., 2015). Third, market dynamism was measured on a five-point Likert scale, with three items, ranging from strongly disagree to strongly agree (Slater & Narver, 1994). Fourth, firm size was assessed through the number of full-time employees (J. ...
... 7. This counter-intuitive result regarding market dynamism supplements some other studies featuring contrasting evidence pertaining to how certain aspects of the business environment can affect the performance outcomes of a market orientation and/or an entrepreneurial orientation (Cadogan et al., 2009;Slater & Narver, 1994;Wiklund & Shepherd, 2005). Therefore, seemingly, an EMO is also susceptible to varied consequences from such macrolevel environmental forces. ...
... Nonetheless, empirical studies on the relationship between market orientation and performance are not tangible (Slater & Narver, 2016). Market orientation has been testified to be impacting business performance only for judgemental performance metrics (Ruekert, 1992), but is not suitable and well fitted to objective performance metrics (Slater & Narver, 2016). ...
... Nonetheless, empirical studies on the relationship between market orientation and performance are not tangible (Slater & Narver, 2016). Market orientation has been testified to be impacting business performance only for judgemental performance metrics (Ruekert, 1992), but is not suitable and well fitted to objective performance metrics (Slater & Narver, 2016). Since it is considered that the effectiveness of market orientation may be contingent on the dynamics of the market, an examination of market orientation in developing countries such as Indonesia in the banking sector would be worthwhile. ...
... Penetrating and syncing TQM in a service system is considered an important task. They require an in-depth analysis of the company's needs and demands to integrate outstanding service quality (Slater & Narver, 2016;Sutrisno, 2019;Talib & Rahman, 2010). That said, we propose the following hypotheses H2: There is a significant relationship between total quality management and service quality. ...
p> Total Quality Management (TQM) has gained significant attention across various industries as a concept to enhance organizational performance, including in banking industry. This research paper aims to investigate the implementation and impact of TQM principles in the banking industry, exploring its essential indicators including service quality, market orientation, and customer satisfaction. The study begins by reviewing the existing literature on TQM and its application in the banking industry, highlighting key concepts, methodologies, and discussion. Empirical data was taken from 185 bank workers in East Java Region of the Republic of Indonesia, especially Surabaya City. This study uses Confirmatory Factor Analysis to test construct reliability and validity, while the relationship between variables is examined with Partial Least Square/ PLS-SEM. This research uses purposive sampling, we are targeting private bank workers in Surabaya through online questionnaires spread by social media. This research contributes to the existing body of knowledge by providing a comprehensive review and analysis of TQM implementation in the banking industry. This research findings demonstrate that TQM has a significant relationship with Customer Satisfaction, Service Quality, and Market Orientation.
Abstrak dalam Bahasa Indonesia. Manajemen Mutu T otal (TQM) telah mendapatkan perhatian signifikan di berbagai industri sebagai konsep untuk meningkatkan kinerja organisasi, termasuk dalam industri perbankan. Makalah penelitian ini bertujuan untuk menyelidiki implementasi dan dampak prinsip-prinsip TQM di industri perbankan, mengeksplorasi indikator-indikator pentingnya termasuk kualitas layanan, orientasi pasar, dan kepuasan pelanggan. Studi ini dimulai dengan meninjau literatur yang ada tentang TQM dan aplikasinya dalam industri perbankan, menyoroti konsep-konsep kunci, metodologi, dan diskusi. Data empiris diambil dari 185 pekerja bank di Wilayah Jawa Timur Republik Indonesia, khususnya Kota Surabaya. Penelitian ini menggunakan Analisis Faktor Konfirmatori untuk menguji reliabilitas dan validitas konstruk, sementara hubungan antar variabel diperiksa dengan Partial Least Square/PLS-SEM. Penelitian ini menggunakan purposive sampling, kami menargetkan pekerja bank swasta di Surabaya melalui kuesioner online yang disebar melalui media sosial. Penemuan penelitian ini berkontribusi pada tubuh pengetahuan yang ada dengan memberikan tinjauan dan analisis yang komprehensif tentang implementasi TQM di industri perbankan. Temuan penelitian ini menunjukkan bahwa TQM memiliki hubungan yang signifikan dengan Kepuasan Pelanggan, Kualitas Layanan, dan Orientasi Pasar.</p
... Regarding CEO focus, while the literature acknowledges the importance of a CEO's attention (Ocasio, 1997), there is limited empirical work that directly and quantitatively assesses the impact of a CEO's focus on specific strategic performance metrics on various dimensions of firm performance. While studies have examined the impact of market orientation (Kohli & Jaworski, 1990;Slater & Narver, 1994) and a focus on efficiency/optimization to a degree (Mizik & Jacobson, 2003;Conner 1991), a comprehensive investigation that compares the effects of CEO focus on financial, marketing, and optimization performance metrics on a range of outcomes is limited. Existing research also tends to treat strategic focus as a more permanent construct defining the approach to achieving strategic goals, rather than a responsive reaction in prioritization of specific metrics. ...
... Furthermore, the study unequivocally demonstrates the powerful influence of a CEO's strategic focus, particularly their emphasis on marketing performance. This focus consistently emerged as a significant predictor of all four performance dimensions, reaffirming the enduring importance of market orientation and customer-centric leadership in achieving superior competitive advantage(Kohli & Jaworski, 1990;Slater & Narver, 1994;Homburg et al., 2012). This challenges a narrowly defined, exclusively financial-results-oriented approach, suggesting that a broader, more holistic perspective, encompassing market dynamics, customer value creation, and competitive positioning, is essential for sustained success. ...
... Suatu bisnis disebut berorientasi pasar jika budayanya secara sistematis dan menyeluruh berkomitmen terhadap penciptaan nilai superior berkelanjutan kepada pelanggannya. Situasi tersebut bisa terjadi jika perusahaan senantiasa berupaya untuk mengoleksi, mengkonsolidasikan dan memanfaatkan semua informasi terkait pelanggan, pesaing, pemasok, regulator dan faktor lain yang mempengaruhi proses penciptaan nilai pelanggan (Slater & Narver, 1994). ...
... Menguasai informasi pelanggan akan memungkinkan perusahaan untuk beradaptasi dengan kebutuhan pelanggan, dan persyaratan untuk menanggapi perubahan kebutuhan dan keinginan pelanggan, pada saat yang sama untuk 270 memposisikan nilai-nilai produk atau perusahaan dalam pikiran pelanggan. Dalam konteks budaya orientasi pasar, orientasi pelanggan dan kontinuitas perusahaan dalam bentuk komitmen dalam mengumpulkan informasi tentang pelanggan (Slater & Narver, 1994), akan memungkinkan perusahaan meningkatkan keunggulan posisi di segmen pasar sasaran (Hunt & Morgan, 1995). ...
SMEs play an important role in the national economy. They not only contribute to job creation, but also play a role in economic diversification and poverty reduction. However, in this era of globalization and digitalization, SMEs are faced with increasingly complex and competitive challenges. The ability to innovate is the main key to surviving and thriving amidst increasingly fierce competition.
This book is designed to provide a comprehensive theoretical and practical guide to how SMEs can develop their innovation capabilities. We review cutting-edge innovation concepts, implementation strategies, and case studies of SMEs that have successfully improved their performance through innovation.
... According to Kumar et al. (1998), market orientation has a more substantial positive effect on corporate performance during periods of high market turbulence. Whereas some authors argue that market fluctuations either have an inverse or no moderating impact on performance (Appiah-Adu, 1998; Gray et al., 1999;Kohli & Jaworski, 1990;Rose & Shoham, 2002;Slater & Narver, 1994;Subramanian & Gopalakrishna, 2001). In line with this, Ullah et al. (2020) discovered that technological instability negatively influences CRM adoption and organisational performance. ...
... However, some scholars found that the market orientation and performance of firms are enhanced by lower level of TT (Greenley, 1995;Slater & Narver, 1994), while others report the reverse effect (Rose & Shoham, 2002) or no moderating impact at all (Gray et al., 1999;Kohli & Jaworski, 1990). On the other hand, TT negatively correlates with lean manufacturing practices and organisational efficiency (Chavez et al., 2015). ...
In the era of technology, along with friendly leader-member exchange (LMX), employees’ intrinsic work motivation (IWM) and technological turbulence (TT) as external factors are also associated with organisational innovation (OI). This study looks at the mediation effect of IWM and the moderation impact of TT between LMX and OI. The hypotheses were tested with data (N = 217) collected from the employees of various service and manufacturing firms using convenient and snowball sampling approaches. The result shows that IWM has full mediation and TT has no moderation influence on the association between LMX and OI. However, TT has a significant negative, moderated influence on the relationship between IWM and OI. While, TT has a significant negative, moderated influence on the relationship between IWM and OI. This study builds on social exchange theory and the resource-based view (RBV), demonstrating how LMX, reciprocity, and trust motivate employees to participate in OI. In practice, managers should be aware of TT in the presence of relevant internal constructs that substantially affect OI. This study concludes by highlighting its key limitations and pinpointing directions for future research.
... Firms that operate in a highly turbulent environment are faced with uncertainty which requires faster and novel responses (Phuong et al., 2012). Environmental turbulence has been categorised into market turbulence and technological turbulence (Slater and Narver, 2018). Market turbulence refers to the extent to which customer product preferences change in an industry (Olson et al., 2005). ...
... Technological turbulence reflects the degree of unpredictable change related to process and product technologies in the industry (Huang and Tsai, 2014). Current technology becomes obsolete in a turbulent technological environment and requires the development of new ones (Slater and Narver, 2018). Previous studies investigated the moderating role of technological turbulence on the link between firm agility and performance (Côrte-Real et al., 2017), and between innovation capability and firm performance (Turulja and Bajgoric, 2019). ...
... On the other hand, the influence of companies on shaping market rules and decisions varies across environments with different competitive intensities (Slater and Narver, 1994). In highly competitive industries, companies face greater market risks (e.g. ...
... Thus, the negative effect of stock repurchases on marketing capability will be exacerbated in highly competitive environments. Conversely, in industries with low competitive intensity, companies exert more significant influence in shaping market rules and decisions (Slater and Narver, 1994), which manifests as strong predictability for firms (Martin and Javalgi, 2016;Cui et al., 2005), as they face lower risks and can better forecast market trends (Auh and Menguc, 2005). Hence, for managers of firms that buy back shares in environments of low competitive intensity, where market share and market resources are more abundant, the pressure from shareholders is less pronounced, allowing them to prioritize long-term development (Kumar et al., 2011), such as investing in marketing capabilities. ...
Purpose
This study aims to investigate the effect of stock repurchase – firms buying back their own stocks – on firm performance, focusing specifically on the role of marketing capability. The authors also investigate the moderating influence of competitive intensity on this effect. This research sheds light on how marketing capability explains the negative effect of stock repurchase on firm performance, and how this effect varies in different competitive intensity environments.
Design/methodology/approach
The authors test their hypotheses using US firm-level longitudinal data collected from a sample set of firms obtained from the Compustat database for the 1989–2015 period. The authors specify a panel data regression model to test the hypotheses.
Findings
The authors find that adoption of stock repurchase ultimately results in a decrease in firm performance, through a decrease in marketing capability. The authors also find that the indirect effect of stock repurchase on firm performance is moderated by firm competitive intensity, such that at higher levels of competitive intensity, the negative relationship between stock repurchase and marketing capability will become amplified and at lower levels of competitive intensity, the negative relationship between stock repurchase and marketing capability will get attenuated.
Research limitations/implications
This study indicates that the risk from stock repurchase is the diversion of funds from other beneficial activities such as marketing budgets, leading to lowered marketing capability.
Practical implications
This study's results will help managers improve their understanding of the dark side of the stock repurchase strategy and help take corrective action.
Originality/value
The present study empirically tests the effects of stock repurchase on marketing capability and firm performance.
... Previous empirical research shows that market orientation can contribute to better company management (Kanovska and Tomaskova, 2012) because it is not only customer-oriented but also includes competitor orientation and inter-functional coordination (Oduro and Haylemariam, 2019); thus, market orientation is generally associated with various aspects of organizational performance, such as profitability (Slater and Narver, 1999) and marketing performance (Oduro and Haylemariam, 2019). This argument aligns with previous research that indicate the deployment of market-oriented strategies can enhance the performance of small and medium-sized enterprises (SMEs). ...
... These empirical results are in line with several other empirical studies that found a positive and significant impact of market orientation on innovation performance and product quality (Hunt and Morgan, 1995;Pelham and Wilson, 1995;Paladino, 2008;Rodríguez-Pinto et al., 2011), meaningfulness of new products (Kim et al., 2013), product development processes, and new product performance (Langerak et al., 2007). These empirical results indicate that market orientation can facilitate a company's ability to innovate and achieve success in new products (Kohli dan Jaworski, 1990;Deshpandé et al., 1993;Calantone et al., 1994;Cooper, 1994;Slater dan Narver, 1994;Atuahene-Gima, 1995;Atuahene-Gima, 1996). ...
The primary aim of this study was to empirically examine the contribution of the Innovative Indigenous Product (IIP) approach in enhancing the marketing performance of MSMEs supported by P3UD in Deli Serdang District, North Sumatra. Through the distribution of questionnaires to 98 MSME participants and the application of Smart-PLS 3.0 for analysis, the results reveal that IIP significantly contributes to the relationship between market orientation and marketing performance, suggesting that market orientation indirectly influences marketing performance by fostering IIP. These findings highlight the importance for MSMEs to explore innovative products and services rooted in local culture, which not only boosts marketing performance but also fosters sustainable competitiveness. Additionally, the results suggest that government support plays a critical role in shaping the relationship between market orientation and marketing performance. Overall, the mediation and moderation effects underscore the significance of contingency factors as indispensable elements in efforts to enhance marketing performance.
... Process-oriented management teachings such as activity based management (Turney, 1992), total quality management (Creech, 1994;Mizuno, 1992), business process re-engineering (Earl and Khan, 1994), continuous improvement (Davenport, 1993), lean management (Taylor, 1999;Vollmann, Berry and Whybark, 1997) and supply chain management (Shapiro and Heskett, 1985) have traditionally focused on enhancing the efficiency of processes within organizations. While a number of scholars have raised the role of the customer in the improvement of business processes (Jones and Sasser, 1995, Kohli and Jaworski, 1990, Slater and Narver, 1994, these teachings have also been criticized for being rhetoric and not paying enough genuine attention to the customer (e.g. Wood, 1997). ...
... The results attained through the implementation clearly demonstrate that it is possible to achieve business process improvements by utilizing customer complaint data, thus supporting the argumentation in previous research which has raised the role of customer information in the improvement of business processes (e.g. Jones and Sasser, 1995, Kohli and Jaworski, 1990, Slater and Narver, 1994. Moreover, in terms of the Customer Orientation, Engineering and Human Resource routes depicted in Figure 1, the results of the case study showed that these are intertwined rather than independent of each other. ...
Process-based thinking commonly focuses on enhancing the efficiency of processes, while it is often criticized for not paying enough attention to the customer. This paper argues that customer complaint information can be used as a basis for customer-focused process improvement. Thus, it is not enough to make the complaining customer satisfied, but the complaint information should also feed back to the actual processes where the fault causing the complaint arose and where it can be removed. The empirical component of the study includes the development of a novel construction to utilize customer complaints for process improvements, which was implemented in a large Finnish enterprise operating in the wholesale logistics environment. The results show benefits at both operational and strategic levels.
... Technological context is related to the architectural attributes of the technology and platforms around which start-up activities occur and shapes entrepreneurial activity by providing resources (information and networking) (Kam-Sing Wong, 2014;Autio et al., 2014). Technological instability signifies a rapid pace and unpredictability of technological change within an industry (Slater and Narver, 1994), which opens spaces for developing new products and mastering new technologies (Rudd et al., 2008). Market fluctuation reflects the extent and volatility of changes in customers' composition, behavior and preferences (Kohli and Jaworski, 1990;Slater and Narver, 1994). ...
... Technological instability signifies a rapid pace and unpredictability of technological change within an industry (Slater and Narver, 1994), which opens spaces for developing new products and mastering new technologies (Rudd et al., 2008). Market fluctuation reflects the extent and volatility of changes in customers' composition, behavior and preferences (Kohli and Jaworski, 1990;Slater and Narver, 1994). Market fluctuation produces opportunities for engagement with new clients and extension into new markets (Rudd et al., 2008). ...
Purpose
This study aims to explore the impact of different contextual factors and their interactions on university students' entrepreneurship, specifically start-up activities.
Design/methodology/approach
The paper used a multilevel hierarchical model with four contextual factors: i) industry and technological, ii) institutional and policy, iii) organizational-university; and iv) cultural. Each of these factors might influence university students’ start-up activities differently. To address this exploratory direction, the study used a sample of 34,200 nascent entrepreneurs from 34 countries included in the Global University Entrepreneurial Spirit students’ Survey, along with data from the World Economic Forum’s Global Competitiveness Index, Global Entrepreneurship Index and Global Leadership and Organizational Behavior Effectiveness Index.
Findings
The results show that, in general terms, contextual elements impact university students’ start-up activities. Nevertheless, when these factors are combined, their effect increases strongly with the performance-based culture but decreases with a high level of a socially supportive culture.
Originality/value
Regarding the study of university students’ start-up activities, most scientific evidence has an individual-level approach without considering the influence of the context. The paper adopts a multilevel approach for such analysis to reflect the multilevel and context-dependent nature of the topic under study.
... MO enables firms to sense the changing needs of customers and effectively respond via marketing capabilities that are needed to succeed in a dynamic environment. High degree of environmental dynamism offers better opportunities to market-oriented firms [74,75]. MO seek to understand the environmental changes to proactively respond to customers' needs. ...
... Even though some studies provide mixed evidence regarding the moderating role of environmental dynamism in the relationship between MO and firm performance [76], our finding support the commonly perceived phenomena [25]. While no prior study examined the moderating effect of environmental dynamism on the indirect relationship between MO and firm performance via marketing and mark-linking capabilities, this study offers important evidence in line with [74] that environmental dynamism positively moderating the indirect association between MO, marketing capabilities, and firm performance. In other words, the findings confirm that environmental dynamism significantly strengthens the indirect relationship that exists between MO and firm performance via marketing capabilities. ...
While there are several studies that examine the performance implications of different strategic orientations, little is known regarding the complex interplay between the two prominent strategic orientations and strategic capabilities in impacting firm performance. Notably, it is ambiguous how a firm's strategic orientations are aligned with different strategic capabilities to maintain competitive performance. To address this gap, the study employs a moderated mediation analysis to investigate the mediating role of strategic capabilities in the relationship between market, technology orientations, and firm performance. It also examines the moderating effect of environmental dynamism in shaping the mediated association between strategic orientations and performance. Based on the survey results of 205 large Ethiopian manufacturing firms, our findings confirm that market orientation exerts a positive and significant influence on both marketing and market-linking capabilities, while only marketing capabilities mediate the relationship between market orientation and firm performance. Likewise, there is a strong association between technology orientation and strategic capabilities (i.e., technology and information technology capabilities), mediating the relationship with firm performance. Meanwhile, environmental dynamism influences the indirect relationship that exists between market, technology, and firm performance through their corresponding strategic capabilities. Our study sheds light on strategic management literature by showing the unique relationship and interdependency between strategic orientations and capabilities in attaining superior performance. This study also forwarded some practical implications of the findings.
... Empirical studies, offer results that suggest a positive relation between customer orientation and firm performance irrespective of the size. Slater and Narver (1994), Kirca, Jayachandran and Bearder (2005) and Chen and Lin (2011) opine that the logic for expecting a strong link between a customer orientation and performance is based on the concept of a sustainable competitive advantage and a number of researchers have examined the link between customer orientation and performance. Although several studies have supported an association between customer orientation and profitability but most of these studies were conducted in US, Europe and Asia, Cross et.al. ...
... That is, as the number of firms in an industry increases, and the promotion wars increases, there would be frequent and daily competitive moves, prevalent price competition, then competition would cut throat leading eventually to firms becoming more customer focused, so as to retain their customers and so as to win the customers from other competiting brands. This result concur with result of Slater and Narver (1994), Kumar and Subramanian (2000), Judge and Elenkov (2005), Russo & Harrison (2005), and Zuniga-Vicente et al (2006) who studied the impact of competitive intensity on corporate performance and as moderating effects in market orientation-performance relationship. ...
Customer orientation has been said to involve the analysis of customers' needs, and responsiveness of organization to such needs. Some researchers have raised the issues of the impact of environmental forces on organizational performance, to establish this empirically, the study looks at the relationship between customer orientation and firm performance of some randomly selected firms in the Nigerian economy. Structured questionnaire were distributed to officers responsible for the strategic direction of the firms and the resultant data was subjected to descriptive statistical analysis, analysis of variance, correlation and regression analysis. The results obtained show that competitive intensity affect customer orientation-firm performance relationship. The policy implication of this finding was also discussed and recommendations advanced.
... The form of production results with the category of goods and services is very dependent on the category of business activities owned by the company concerned [5]. The production department in a business organization plays an important role in efforts to influence an organization. ...
This study is entitled "Analysis of Labor Productivity in the Pottery Craft Industry Center in Masbagik Timur Village, Masbagik District, East Lombok Regency". The type of research used is descriptive research. The area and location of the research were conducted in Masbagik Timur Village. The types of data used are primary data and secondary data. Data collection techniques used are observation, interviews and literature studies. Determination of respondent samples using simple random sampling techniques. The analysis tool used to determine the amount of labor productivity is the productivity formula and productivity index. The results of the analysis (research) show that the value of labor productivity is greater than the value of the productivity index, which can be seen as follows: in the plate and ashtray business unit, the productivity index is 2.94 units/hour and the productivity is 3.75 units/hour. The business unit of jars, jugs, pots, and barrels, the productivity index is 0.47 units/hour and the productivity is 0.62 units/hour. The business unit of rice containers, kettles, and fruit containers has a productivity index of 0.94 units/hour and the productivity is 1.25 units/hour. The business unit of mortars and piggy banks has a productivity index of 1.92 units/hour and the productivity is 2.5 units/hour. The business unit of stoves has a productivity index of 1.44 units/hour and the productivity is 1.87 units/hour. The business unit of pestles has a productivity index of 3.84 units/hour and the productivity is 5 units/hour. So it can be seen that labor productivity in the pottery industry is large, because the productivity value is greater than the productivity index value.
... Therefore, MSMEs need to be more careful in managing their marketing strategies to survive during fierce competition (Hendra et al., 2022;Sutrisno et al., 2023). The competitive environment can also act as a moderation variable that affects the relationship between personal selling, innovation capacity, distribution effectiveness, and marketing performance (Crick et al., 2024;Slater & Narver, 1994b). In a f iercely competitive environment, the impact of personal selling or innovation on marketing performance may be stronger, because MSMEs need to fight harder to retain customers and attract new customers (Muis et al., 2024;Natoil et al., 2023). ...
This study aims to analyze the influence of personal selling, innovation capacity, and distribution effectiveness on the marketing performance of MSMEs, as well as the role of moderating the competitive environment. This study uses the Structural Equation Modeling (SEM) approach with 387 MSME respondents in Indonesia. The results showed that personal selling and innovation capacity had a positive and significant influence on marketing performance, while distribution effectiveness did not show a significant influence. The competitive environment plays a significant moderating variable on the influence of innovation capacity but does not moderate the relationship between personal selling and distribution and marketing performance. These findings indicate that to improve marketing performance, MSMEs need to focus on personal selling strategies and product innovation, especially in markets with a high level of competition. This research also provides recommendations for MSMEs to improve their distribution strategies and better adapt to the development of marketing technology.
... The established connection between MO and business performance is significantly influenced by factors like competition intensity, market turbulence and technological changes (Andotra & Gupta, 2016;Kumar et al., 1998;Matsuno et al., 2000;Slater & Narver, 1994). A growing number of competitors, rapidly changing trends, customer preferences and rapid innovation contribute to increasing uncertainty in the international market environment (Morgan et al., 2018). ...
Drawing on dynamic capabilities theory, the study aims to contribute to the existing literature by investigating the mediating role of integrated marketing communication (IMC) in the relationship between market orientation (MO) and customer-related and market performance. Specifically, it focuses on understanding how IMC operates as a strategic tool for small and medium-sized enterprises (SMEs) in the international environment. The research uses data from 422 SMEs and large firms in both developed and developing economies. Hypothesis testing was conducted using structural equation modelling (SEM). The results show that IMC, as a dynamic capability, enhances the positive impact of MO on customer-related and market performance in both developed and developing economies. The firm's size moderates this mediation effect; however, the moderation varies depending on the economy type. In the developing economy, IMC mediation is stronger for SMEs than large firms, whereas in the developed economy company size doesn't impact IMC mediation. This research contributes to the marketing communications and business management theory, particularly by expanding the knowledge of the unique context of SMEs in developing economies. The practical implications of the study are particularly relevant for SMEs managers operating in diverse economic contexts, providing actionable insights that can inform decision-making and marketing strategies for SMEs.
... Firms facing uncertain and volatile markets are required to constantly track changes in customer requirements to react in a timely manner (Slater and Narver 1994;Schweitzer, Gassmann, and Gaubinger 2011). In this way, companies can adapt and develop new products that meet changing customer needs (Schweitzer, Gassmann, and Gaubinger 2011). ...
... Determining the role of entrepreneurs in contributing to the idea and innovation system, specifically, and the sustainable socio-economic system in general, is crucial. Innovation has been found to influence company performance (Slater and Narver, 1994), but other studies (Indriani et al., 2020;Jaworski and Kohli, 1993) found mixed results. ...
This research aims to determine and analyze the extent of the influence of community empowerment and sustainability-oriented innovation on sustainable performance through coworking spaces in the city of Bandung. To achieve the research objectives, a deductive approach is employed, intending to test a hypothesis to strengthen or reject existing hypotheses. Therefore, this research is also categorized as explanatory research. The research method used is the survey research method. The research sample is determined based on proportional stratified random sampling. This study focuses on business groups in coworking spaces in the 28 districts of Bandung City, with a total of 408 business operators. The sample selected consists of 208 business operators. Based on the research results, several conclusions are drawn, as follows: (1) Community empowerment has a significantly positive influence on sustainability performance, with a contribution of 84.5%; (2) Sustainability-oriented innovation has a significantly positive influence on sustainability performance, with a contribution of 69.2%; (3) Community empowerment has a significantly positive influence on Coworking Space, with a contribution of 93.6%; (4) Sustainability-oriented innovation has a significantly positive influence on Coworking Space, with a contribution of 36%; (5) Community empowerment has a significantly positive influence on sustainability-oriented innovation, with a contribution of 90.6%; (6) Coworking Space has a significantly positive influence on sustainability performance, with a contribution of 34%; (7) Community empowerment has a significantly positive influence on sustainability performance through Coworking Space, with a contribution of 20.7%; and (8) Sustainability oriented innovation has a significantly positive influence on sustainability performance through Coworking Space, with a contribution of 12.2%.
... Selon l'approche culturelle développée par Narver et Slater (1990) et Slater et Narver (1994, 1995, l'OM reflète « la culture organisationnelle qui induit […] les comportements nécessaires à l'offre d'une valeur supérieure aux clients et, par conséquent, l'obtention d'une performance supérieure pour l'entreprise » (Narver et Slater, 1990, p. 21). Cette perspective, qui place la défense des intérêts de la clientèle au coeur de la philosophie marketing (Deshpandé, Farley et Webster, 1993), repose sur trois composantes clé : (i) l'orientation client, qui désigne les efforts des organisations pour comprendre et répondre aux attentes des clients, (ii) l'orientation concurrent, qui permet de comprendre comment les concurrents répondent à ces besoins et, enfin, (iii) la coordination interfonctionnelle, qui désigne la capacité d'une organisation à suivre et répondre aux actions des concurrents via l'exploitation coordonnée des ressources disponibles en vue de créer la valeur demandée. ...
The aim of this research is to present a systematic review of the literature on Marketing and SME. Using published between 1990 and 2022. Based on the bibliometric analysis of 493 articles published in 172 English- and French-language journals, our results first highlight the strong acceleration of the number of publications, in particular from 2006 onwards. This evolution results from the involvement of a diversified pool of 1,090 marketing, management or entrepreneurship/SMEs authors. Second, the co-citations analysis shows that the theoretical core of this abundant literature lies on four main conceptual perspectives: Market Orientation, Entrepreneurial Orientation, Entrepreneurial Marketing and Marketing Capabilities. Third, the bibliographic coupling analysis reveals the existence of four major research fronts respectively dedicated to (i) the enrichment of work on marketing orientations, (ii) the pursuit of efforts to legitimize the concept of Entrepreneurial Marketing, (iii) the increasing adoption of the marketing capabilities-based perspective and finally (iv) the emergence of digital marketing as distinct research avenue.
... Furthermore, transition from an examination and approval system to a registration and recording system has also substantially enhanced operational efficiency for businesses. Considerable policy advantages associated with PFTZs can attract large numbers of high-quality domestic and international enterprises to invest and establish a presence; this results in the share of local enterprises in local markets being squeezed, and enterprises in PFTZs facing a more intensely competitive environment [46]. Under these circumstances, enterprises must enhance productivity and optimize organizational management if they are to withstand fierce market competition. ...
Pilot Free Trade Zones (PFTZs) are a crucial new platform for China to build a more open economic system. Existing literature primarily focuses on the ‘Bring In’ effect of PFTZs, often overlooking the importance of ‘Going Out’ aspects. To bridge this gap, this paper uses data from China’s Shanghai and Shenzhen A-share listed enterprises from 2007 to 2021 and constructs a time-varying difference-in-differences (DID) model to test the impact of establishment of PFTZs on international expansion of enterprises. The study finds that establishment of PFTZs can significantly promote international expansion of enterprises, with a more pronounced effect on the scope of international expansion than on its depth. Mechanism analysis reveals that PFTZs can facilitate international expansion of enterprises by driving digital transformation, enhancing total factor productivity and management efficiency, and alleviating financing constraints. Notably, senior managers with overseas work experience play a crucial role in enhancing this relationship. Further, PFTZs not only have a linkage effect with the Belt and Road Initiative but also a radiation effect on neighboring cities. This study provides an analytical perspective and empirical evidence for evaluating policy effects of PFTZs and offers valuable insights that will enable PFTZ policies to be refined and facilitate successful implementation of the ‘Going Out’ strategy.
... Besides, the role of moderators could also be examined in future research. Specifically, the role of environmental turbulence (including market turbulence, technological turbulence and competition intensity as dimensions) (Slater and Narver, 1994) and organisational demographic factors like number of departments, location, age, number of affiliations and number of students could be studied in future research for grounding the organisational agility literature. Moreover, dependent variable, i.e. organisational performance of higher education institutions could be measured more comprehensively by including more items like training of faculty for skill enhancement, learning quality, teacher-student relationship, cocurricular activities and career development of faculty and students for its measurement (Chan and Muthuveloo, 2022). ...
Purpose
This study examines the impact of organisational agility on the performance of higher education institutions. It also aims to explore the mediating role of various capabilities, namely, service innovation, technology capability, learning capability, and collaborative knowledge creation, in the agility-performance relationship.
Design/methodology/approach
The sample of this study includes teaching staff of two prominent state universities of J&K, India. The study employs Exploratory Factor Analysis (EFA) and Structured Equation Modelling (SEM) for scale purification and hypotheses testing.
Findings
The results show that organisational agility positively influences performance of higher education institutions. Capabilities, namely, service innovation, technology capability, learning capability and collaborative knowledge creation, partially mediate the organisational agility-performance relationship.
Research limitations/implications
The sample comprises teaching staff of two established universities of J&K, India.
Practical implications
For sustenance in the turbulent environment, higher educational institutions should employ practices like regular modification of academic programs, increasing the speed of logistics activities, investing in high-ended software and hardware facilities, and developing an open environment for the exchange of ideas by employees. Policy formulation should encourage adopting agile practices in higher education institutions for enhanced performance.
Originality/value
This paper focuses specifically on organisational agility and its impact on the performance of higher educational institutions. The study contributes to the agility literature by testing the mediating roles of service innovation, technology capability, learning capability and collaborative knowledge creation collectively in the relationship between organisational agility and performance, concluding that all these capabilities except service innovation enhance the effect of organisational agility on performance.
... Davamlı üstün müştəri dəyəri yaratmaq üçün isə, firma, müştəri yönümlü, rəqib yönümlü və koordinasiyalı olmalıdır [12]. Slater və Narver [14], müştəri yönümlülük, rəqib yönümlülük və funksiyalararası koordinasiyanın hər birinin öz içində bilgi toplanması, yayılması və idari reaksiya verməni ehtiva etdiyinə vurğu edərək, təriflərinin Kohli və Jaworski'nin tərifləriylə paralellik təşkil etdiyinə diqqət çəkmişlər. ...
The purpose of this study is to investigate the fundamental thoughts in market orientation literature. The views of Kohli and Jaworski, Narver and Slater, are two leading views on the subject. While Kohli and Jaworski emphasize behaviour, Narver and Slater underlined that the application of marketing must also be adopted as culture. There are also some opinions in the literature that argue that customer orientation and competitive orientation can not be examined under the same structure.
... The concept of "competitive intensity" arises when multiple companies compete within the same industry, posing obstacles to accessing new avenues for growth [18]. Competitive intensity is a crucial market indicator in strategic management research, assessing the extent to which competitors offer similar products and services in the same market [37][38][39]. The level of competition significantly impacts an enterprise's mergers and acquisitions, shaping its core competitive advantage and leading to above-average profits. ...
In the face of various risks and uncertainties including political instability, technological advancements, and natural disasters, businesses involved in cross-market activities are encountering a more competitive environment. This study investigates the relationship between competitive intensity, business intelligence, internal process efficiency, and the performance of small and medium-sized manufacturing enterprises in China. By incorporating the Technology-Organization-Environment (TOE) framework and Dynamic Capabilities Theory, a research model is developed to demonstrate that competitive intensity improves firms’ performance through the utilization of business intelligence capabilities and internal process efficiency. Through the use of a structural equation model, data collected from 15 industrial parks in Henan province, China, involving 429 participants, was analyzed. The findings show a positive correlation between competitive intensity and business intelligence sensing capability (both internal and external). The impact of business intelligence sensing capability on the performance of small and medium-sized manufacturing enterprises is shown to be mediated through internal process efficiency. Our study reveals the mediating roles of business intelligence capability and internal process efficiency in improving organizational performance among Chinese small and medium-sized manufacturing enterprises. This research not only fills gaps in business intelligence research from a management perspective but also contributes to the literature on the interactions among competitive intensity, business intelligence, internal processes, and organizational performance. It also sheds light on the relationship between competitive intensity and organizational performance, offering insights for companies involved in cross-market activities. By highlighting the importance of business intelligence capabilities in adapting to environmental influences, this study offers practical guidance for enterprise digital transformation efforts.
... The effect of rivals on the success of a marketing plan is another hot issue. Dess and Davis (1984) and Slater and Narver (1994) conducted empirical studies to evaluate this connection by examining the effects of various competing tactics on corporate performance. Jaworski and Kohli (1996) and Narver and Slater (1990) discussed the importance of competitors in connection to competitive intelligence in marketing strategy. ...
... These two publications expanded upon prior study on the "marketing concept" (Narver, Slater & Tietje, 1998) and established the two primary viewpoints in the literature on market orientation (Griffiths & Grover, 1998). Kohli and Jaworski (1990) developed the behavioral approach, whereas Narver and Slater (1990) developed the cultural perspective (Narver & Slater, 1990;Slater & Narver, 1994a, 1994b. According to Narver and Slater (1990), market orientation is an organizational culture that places the highest priority on the profitable achievement and maintenance of superior customer value, taking into account the interests of other key stakeholders, and establishes behavioral norms for generating and responding to market information throughout the organization. ...
The purpose of this research is to investigate the factors influencing the behavior of Turkish manufacturing firms towards export market orientation. In this regard, semi-structured interviews were conducted with 18 export sales managers and the obtained data were analyzed using qualitative content analysis. According to the findings of the analysis, the factors that may influence firms' export market orientation practices are classified under seven themes which include organizational structure, firm characteristics, firm capabilities, export sales manager characteristics, top management characteristics, inter-firm factors, and environmental factors. The study provides important conclusions regarding which firm capabilities should be developed to increase the level of market orientation in export activities, and which characteristics and competencies of export managers and top-level executives should be emphasized. Additionally, it highlights the importance of developing trust-based cooperative relations with importers to obtain export market knowledge and provide effective responses.
This study aims to propose a research model of organizational performance focused on the self-managed work team environment (SWTE), work team management and self-management, based on the assumption that self-management of work teams facilitates and accelerates growth in organizational performance. The method used is based on meta-analysis and meta-cognitive-descriptive based on the conceptual, theoretical and empirical review of the literature. The results of the analysis are conclusive in that the management of the self-managed work team environment contributes to facilitating the growth and development of organizational performance.
The effects of product market competition on a firm’s financial policy and business strategy are evident in extant literature. As a firm’s internationalization is a function of financial policy and business strategy, the firm’s decision is impacted by product market competition. However, prior studies lack empirical evidence supporting the relationship between product market competition and firm internationalization. We tested our hypotheses using a panel data set ( n = 64,147 firm-year observations) of publicly traded U.S. firms from 1990 to 2021 employing a panel data econometric model [i.e., partial least squared-ordinary least squares (OLS), fixed effect model]. The study results supported our hypothesis that product market competition reduces the likelihood of a firm’s internationalization. The study results enhance managerial understanding of internationalization decisions and suggest that businesses should consider the product market’s competitive position while making internationalization decisions. Policymakers should support those firms in overcoming the negative impact of product market threats to support internationalization.
This study purpose was to measure and analyzing effect of Entrepreneurship Orientation, Market Orientation on Business Performance at Food industry Small and Medium Enterprises (SMEs) in Kendari. Research objects are Food industry SMEs in Kendari. This study uses primary data. Total population is 244 food industry SMEs. Sampling technique is census method. Data analysis is Multiple Regression Analysis. Research results show that: Orientation Entrepreneurship and Market Orientation and business performance can affect business performance. Orientation Entrepreneurship can affect business performan, Market Orientation can improve business performance
While the CSR literature proliferates, understanding the effects of chiefly proactive (vs. chiefly reactive) CSR activities on customers’ brand identification and brand love lags, leaving managers in the dark. To illuminate these issues, three studies were conducted. First, study 1 deployed an experimental design to test the effect of chiefly proactive/reactive social CSR activities on customer-brand relationships, as measured by brand identification and -love, and their respective impact on customer engagement. To ensure the validity and generalizability of the results, a second study was conducted, which replicated the previous study’s design, albeit focusing on environmental CSR activities. Using survey data, study 3 tested the moderating role of social CSR communication on the association of chiefly proactive/reactive CSR activities on customer-brand identification and brand love. The findings suggest chiefly proactive (vs. -reactive) CSR’s particular effectiveness in driving customer-brand identification, -love, and engagement. The study uncovered social CSR communication’s key role in building customer-brand relationships, particularly for chiefly proactive CSR activities. Moreover, it shows that the effectiveness of CSR activities improves when social CSR communication is used to communicate the firm’s CSR efforts on social media. This study offers theoretical insights and practical suggestions.
With the rapid development of digital technologies, responsible AI has become a critical focus for ensuring ethical and socially conscious advancements in business and operations management. The integration of responsible AI practices in business groups’ digital transformations is essential to mitigate potential risks and maximize the positive impact on operational efficiency, supply chain performance, and subsidiary performance. This study aims to examine the consequences and mechanisms through which responsible group digitalization influences business group’s operation management, as manifested in subsidiary performance within the context of the digital economy. Analyzing data from 202 affiliated subsidiaries, we examine the role of HRM collaboration and technological turbulence in facilitating group digitalization. This study enriches the operations management literature and expands the application of ethical and responsible AI practices in digitalization by investigating the relationship between business group digitalization and business operations. Furthermore, this study provides practical implications pertaining to how ethical and responsible practices can guide group digital transformations, business operations and enhance the performance of subsidiaries.
Jordanian commercial banks are achieving sustainable performance by balancing economic, social, and environmental dimensions, aiming for long-term profitability, community development, and environmental awareness, which are crucial for the banking sector's continuity and development. The current study aims to investigate the impact of strategic orientations on sustainable performance and the moderating role of business intelligence at Jordanian commercial banks. This study collects the primary data from 218 managers at the top and middle levels of Jordanian commercial banks. This study utilized the Statistical Package for the Social Sciences (SPSS) to analyze hypotheses. The study revealed that strategic orientations (learning orientation, market orientation, digital orientation, and entrepreneurial orientation) had a statistically significant impact on sustainable performance at Jordanian commercial banks, with an explanatory power of (R2= 44.4%). It was also demonstrated that business intelligence had a statistically significant impact on improving the impact of strategic orientations on sustainable performance at Jordanian commercial banks, with an explanatory power of (R2= 45.3%). According to the results of the study, the most important recommendations for the banks surveyed are as follows: Jordanian commercial banks should adopt a sustainable strategy through their strategic orientations, focusing on social responsibility, environmental preservation, and environmental interest projects. They should utilize business intelligence, foster a sustainability culture, communicate with stakeholders, and continuously improve performance.
Innovation is a complex and risky process that is often unsuccessful. Reducing the risks associated with innovation can be achieved from both a technology and a market perspective. Whether the research is science-supply or market-led also influences the ability to not only identify a problem, but the extent of need and demand for a solution hence, approaches and research that provide the most likely delivery of innovation are required. The importance of technology, market and regulatory risks of innovation, their measurement and management are considered. A case is made for a reduction in market risks and an increase in market opportunities for innovation through investment in market intelligence. Although dependent on the type of research undertaken a generally applicable route to market from concept to commercialisation incorporating key stages, actors and outputs is provided. A table of proposed measures of inputs and outputs that can be used to determine the value of, or contribution to innovation, completes the chapter.
Purpose
Previous investigations into the connection between strategic orientation (SO) and firm performance (FP) have generated inconsistent outcomes. The authors aim to reconcile and explain these varying results through the application of a mediated moderation model. The purpose of this paper is to explore how SO and strategic flexibility (SF) could create the possibility of improving FP. The indirect effect of SO was also tested in this study. Furthermore, by using the moderated mediation model, the authors also investigated the moderating role of strategic human resource management (SHRM).
Design/methodology/approach
This study adopted the empirical research method, collecting data through questionnaires by a two-wave and multi-source data collection approach. The sample consisted of 188 firms from Shandong and Fujian Province in China. SPSS was used to test the research hypotheses.
Findings
This study examines how and when SO enhances FP by considering SF as a critical mediator and SHRM as an important contingency of the mediation effect. The results revealed that SO positively affects SF and FP in small and medium-sized enterprises (SMEs). Furthermore, the mediating role of SF between the relationships of SO and FP was also confirmed. Moreover, SHRM strengthens the connection between SO, SR and FP.
Originality/value
This study contributes to the SO literature by revealing how firms translate their SO-based strategies into positive FP through SF and when this indirect effect is most effective.
Purpose
This study intends to (1) systematically review methodological, theoretical and empirical aspects of dynamic capabilities (DCs) research in international marketing; (2) identify problematic areas and gaps in the reviewed literature and (c) provide directions to address problematic aspects and fill the gaps in future research.
Design/methodology/approach
The study applies a systematic literature review methodology and covers 97 articles published between 2001 and 2022 in peer-reviewed journals ranked 2, 3, 4 and 4* in the Academic Journal Guide 2021.
Findings
The content analysis shows that (1) methodologically, the literature is dominated by single-country studies conducted mostly in Asia and Europe on a cross-section of industries, mostly adopting survey-based approaches with a cross-sectional time emphasis; (2) theoretically, dynamic capabilities view is mainly accompanied by resource-based view, followed by institutional-, organizational learning- and internationalization theories; and (3) according to the nomological network, DCs are predicted by firm-characteristics, factors related to networks/relationship/partnerships and managerial characteristics, while they act as predictors of performance-related, strategy-related and operational change and renewal-specific outcomes. Several problematic aspects and gaps for each part of the review are diagnosed.
Originality/value
The authors provide a comprehensive assessment of current knowledge on methodological, theoretical and empirical aspects of the relevant literature, map a nomological network of variables surrounding DCs in international marketing research and offer future research directions capitalizing on the problems and gaps identified in the review.
Since its establishment in 1969, the Organization of Islamic Cooperation (OIC) has served as a platform for Islamic countries worldwide to cooperate in various sectors, including economic, social, and cultural. One longstanding form of economic cooperation among OIC countries is in the field of trade. Indonesia, as one of the major producers and exporters of coffee, has engaged in coffee trade with OIC countries, and this cooperation has continued to the present day. This research aims to assess the competitiveness and export performance of Indonesian coffee to OIC using the Revealed Comparative Advantage (RCA) and Constant Market Share (CMS) methods. The results show that Indonesian coffee exports to OIC are competitive but have a declining growth rate. Meanwhile, the export performance of Indonesian coffee to OIC demonstrates good performance in following market distribution trends but shows shortcomings in meeting market preferences. Therefore, enhancing internal trade cooperation within OIC, partnering strategies with competing countries, and measures such as improving technology accessibility and evaluating responsive export policies are necessary.
In an environment characterized by strong changes (technological, economic, social ...), with an intensification of competition caused by the globalization of business sectors. Innovation has become a major challenge for SMEs, and more specifically Moroccan exporting SMEs in the agri-food sector.
The adoption of organizational innovation in companies requires studying even the determining factors of this type of innovation, to know the impact of these determinants on competitiveness and on the overall performance of SMEs and to study the relationships between them; this is the objective of our research problem.
To do this, the main objective of this article allows us to contextualize the theoretical results, to eliminate the nonsignificant variables, to specify and formulate the research problem; we will thus expose an "exploratory qualitative study". This exploratory study is made from 11 semi-directive interviews conducted with the leaders of exporting SMEs in the region of Larache and will be processed by the software New Nvivo. The results of this study showed that the conceptual model developed from the theoretical corpus explaining the determinants of organizational innovation by these two explanatory variables (market orientation and organizational learning), is confirmed through the information collected from interviews. Thus, through the discourse of our respondents we revealed the effect of the two moderating variables which are the age and the size of the firm on the relationship between competitive advantage and organizational performance.
Berau District is in the northern part of East Kalimantan Province and borders directly with North Kalimantan Province. As of 2014, the administrative territory of Berau District was divided into 13 districts with a total of 100 villages and 10 villages. Micro, Small and Medium Enterprises (MSMEs) are economic drivers in Berau district that are still faced with classical problems such as infrastructure, licensing, marketing, distribution and financing as well as post- 19 recovery processes. In connection with the problem, to build micro, small enterprises, and corporations, it is necessary to support the healthy real sector to combat poverty through the strengthening of the purchasing power of better society and the help of financing with light interest. The purpose of this research. Based on the background and the formula of the problems that have been outlined earlier, then the purpose of this research is to develop a model of the conceptual framework by means of proof and analysis; (1). The impact of ambidextrous leadership on digital capabilities on MSME perpetrators in Berau district (2), the impact of customer orientation on digital capacity on MSE perpetrator in Beru district (3), the effect of environmental innovation on digital Capabilities in MSE Perpetrator in Berau district (4). The effect of digital capability on technological capacities in the UMKM Perpetrant in Berea district (5), the influence of digital capacities on service innovation capability in UMM Perpetrator at Beraus district (6). The total sample that meets the criteria in this study is 353 samples and is processed using SmartPLS data processing. The results of this study indicate that there is a direct relationship between the impact of Ambidextrous Leadership, Customer Orientation, Environmental Innovation on Service Innovation Capability.
This empirical study aims into how market orientation and competitive strategy orientation affect the success of innovative products in small and medium-sized Ethiopian businesses. Small and medium-sized businesses are essential to economic growth, especially in developing nations like Ethiopia, where they are the main drivers of local development and the generation of jobs. However, these companies face significant challenges including scarce resources and volatile markets, necessitating the use of tactical approaches to preserve their competitiveness and foster growth. A mixed-methods approach was used in this cross-sectional study, with 396 respondents completing self-administered questionnaires for the quantitative data and semi-structured open-ended interviews for the qualitative data. The analysis was conducted using SPSS and the AMOS app. The findings show both an increase in competitive strategy orientation and market orientation results in an increase product inventive success, and also, an increase in product innovative success results in an increase in both market share and financial performance. The study also demonstrates the noteworthy and indirect positive relationships that market orientation and competitive strategy orientation have on market share and financial success. The outcomes showed how crucial these strategic orientations are to the capacity of Ethiopian SMEs to innovate, overcome challenges, preserve their competitiveness, and promote economic growth. The study emphasizes how important it is for Ethiopian SMEs to have a competitive strategy orientation that is in line with their market orientation in order to successfully innovate new products. Businesses can better respond to market needs and competitive pressures and promote innovation by utilizing insights from competitive analysis and market research, by offering insightful guidance on enhancing innovation and competitiveness in the Ethiopian context, as well as practical pointers for SME leaders and policymakers, this study fills a vacuum in the literature.
This study aimed to examine the relationship between customer orientation and performance of universities in Kenya. The data was collected using descriptive and correlation designs. The research was carried out using primary data collected using a structured questionnaire. A sample of 115 senior staff of 23 universities participated in the study using purposive sampling method. Descriptive statistics were used in analysing data using Statistical Package for Social Sciences while inferential statistics were analysed using regression by use of Stata software. Analysed data was presented in frequency tables and percentages. The descriptive findings established that customer orientation has an influence on performance of universities. However, the regression results found an insignificant positive relationship between customer orientation and university performance. The results indicate insignificance of customer orientation in universities in Kenya with respect to the four performance indicators namely customer orientation, student increase, number of programmes and student rentention. The study provides a useful guide to the management of universities in that they need to realize that meeting the needs and satisfying its customers (student) does not necessarily lead to customer satisfaction, retention of students increase, student number and number of programmes, but other factors besides these dependent variables could lead to university performance. The study has a practical application to universities seeking to compete favourably in a competitive education environment by employing other market orientation strategies which are not necessarily related to customer orientation.
THE MEDIATING ROLE OF COMPETITIVE ADVANTAGE IN THE EFFECT OF ORGANIZATIONAL AMBIDEXTERITY AND TECHNOLOGICAL INNOVATION CAPABILITY ON FIRM PERFORMANCE
The strategic management literature separately reveals that organisational ambidexterity and technological innovation capabilities are effective in competitive advantage and firm performance. However, studies have yet to be found in the literature investigating these two capabilities simultaneously and in a sectoral comparison. The current study aimed to reveal the mediating role of competitive advantage in the effect of organisational ambidexterity and technological innovation capabilities on firm performance and how this role varies according to sectors. Based on the resource-based view, this study used an empirical research method based on quantitative data. Primary data were collected by applying an online questionnaire to 777 people selected by random sampling method from the textile/apparel/leather sector representing the industry sector working under the Istanbul Chamber of Commerce (ITO) and the information technology sector representing the service sector in the province of Istanbul. The collected data were analysed using the SPSS program. The results reveal that competitive advantage mediates the positive and statistically significant effects of organisational ambidexterity and technological innovation capabilities on firm performance, and this mediation role differs by industry. The detailed findings of the present study provided insights into industrial and service sector businesses. Based on these findings, suggestions for researchers and business managers are presented in the conclusion section.
Pension schemes have gained popularity globally, leading to exponential growth and establishment in developed countries. Nevertheless, the uptake of pension products is marked by a lack of appropriate investment vehicles, limited market liquidity knowledge, and poor expertise about these investments and their associated risks. Therefore, the purpose of the study was to investigate the effect of diversification on the uptake of Pensions in Uasin Gishu County. This was because there was a relatively low uptake of pensions in the region. The study employed an ex-post-facto research design. The target population of the study was 159 employees working in the Pension Institutions in Uasin Gishu County, Kenya. A simple random sampling technique was employed to select a sample of 114 employees from all the pension institutions in Uasin Gishu County. A questionnaire was adopted as the data collection instrument. Data collected were analyzed by using descriptive and inferential statistics. Multiple Regression Analysis was employed to test the hypotheses. The study established a positive relationship between diversification (p=0.000) with a contribution of 63.5% and uptake of pension products. The study commended that the Pension Institutions in Uasin Gishu County should devise products that fit the informal sector as a way of promoting the uptake of Pension Institutions in Uasin Gishu County. The study also commented that the pension institution should diversify their products to include more affordable products such as daily submission of savings via mobile phones.
Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals. Management Study HQ describes Management as a set of principles relating to the functions of planning, directing and controlling, and the application of these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organizational goals. A good management is the backbone of all successful organizations. And to assist business and non-business organizations in their quest for excellence, growth and contribution to the economy and society, Management Book Series covers research knowledge that exists in the world in various management sectors of business through peer review chapters. This book series helps company leaders and key decision-makers to have a clear, impartial, and data-driven perspective of how factors will impact the economy moving forward and to know what they should be doing in response.
Purpose
Customer experience management (CXM) and Innovation are two important capabilities on which businesses compete today. However, research to date has not empirically investigated their potential symbiotic relationship. Specifically, does better CXM improve innovation; similarly, does better innovation improve CXM? As a starting point, our research focuses on the former: how does effective CXM correlate with innovation success?
Design/methodology/approach
Data was collected by querying marketing managers from 251 goods and services firms involved in CX design and implementation. Managers answered questions related to their innovation efforts, customer experience management initiatives, and innovation outcomes. Cluster analysis was used to identify a taxonomy of CXM approaches contingent upon environmental factors (market turbulence, competitive intensity, and technological turbulence).
Findings
Our research found that higher levels of CXM engagement result in greater innovation success – i.e. higher success rates, revenues, and profits from new products or services. In addition, we find that there are three distinct approaches to CXM: (1) Extensive CXM approach (43% of firms in our sample); (2) Moderate CXM approach (39%); and (3) Limited CXM approach (18%). Firms with an extensive CXM approach operate in intensely competitive environments that are characterized by very high technological turbulence. Firms that employ a limited CXM approach operate in environments with the lowest levels of competitive intensity and technological change. Market turbulence did not factor into the choice of CXM approach.
Originality/value
To our knowledge, our study is the first to provide empirical evidence that firms adopt different CXM approaches. Further, we identify factors external to the firm that are considered when selecting these CXM approaches; namely, market turbulence, competitive intensity, and technological turbulence. Finally, our findings related to CXM approaches and innovation success indicate that managers should make investments in CXM to help improve innovation.
Presents methods for assessing agreement among the judgments made by a single group of judges on a single variable in regard to a single target. For example, the group of judges could be editorial consultants, members of an assessment center, or members of a team. The single target could be a manuscript, a lower level manager, or a team. The variable on which the target is judged could be overall publishability in the case of the manuscript, managerial potential for the lower level manager, or a team cooperativeness for the team. The methods presented are based on new procedures for estimating interrater reliability. For such situations, these procedures furnish more accurate and interpretable estimates of agreement than estimates provided by procedures commonly used to estimate agreement, consistency, or interrater reliability. The proposed methods include processes for controlling for the spurious influences of response biases (e.g., positive leniency and social desirability) on estimates of interrater reliability. (49 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
An empirical study involving 97 manufacturing firms that averaged $20 million in annual sales yielded a strong positive correlation between the degree of planning formality and firm performance. Additionally, interactive analysis disclosed that this relationship pervaded various grand strategies; the implication being that formalized strategic planning was consistently a positive factor associated with high levels of organizational performance.
A meta-analysis of results from 320 published studies relates environmental, strategic and organizational factors to financial performance. Some factors (e.g., concentration and growth) have been studied widely and have a relatively consistent positive impact on performance. Other widely-studied factors (e.g., size) have few consistent effects. Many factors (particularly organizational variables) are understudied. We suggest implications for research and management practice.
This paper suggests that there are five problems with contingency theory, ranging from a simple lack of clarity in its theoretical statements to more subtle issues such as the embedding of symmetrical and nonmonotonic assumptions in the theoretical arguments. Starting from Galbraith's (1973) contingency theory about organizing for effectiveness, several traditional contingency hypothesis were tested along with more precise hypotheses developed from knowledge of the five problems with contingency theory. Data were drawn from a study of organizational effectiveness in acute care hospital operating room suites. Although traditional contingency notions were not supported by the data, the more precise hypotheses received stronger empirical support. The study data suggest that relationships between technology, structure, and organizational effectiveness are more complicated than contingency theory now assumes. The paper concludes by suggesting formulation of a contingency theory of organizational effectiveness that includes interactive, nonmonotonic, and symmetrical arguments.
The authors test the proposition that the effectiveness of a particular strategic orientation—reactor, defender, analyzer, and prospector—is contingent upon the dynamics of the market. In mildly volatile markets, analyzer organizations are found to outperform other organization strategy types. However, in more volatile markets, the strategy-performance alignment is less clearly determined by the market environment.
Strategy is about seeking new edges in a market while slowing the erosion of present advantages. Effective strategy moves are grounded in valid and insightful monitoring of the current competitive position coupled with evidence that reveals the skills and resources affording the most leverage on future cost and differentiation advantages. Too often the available measures and methods do not satisfy these requirements. Only a limited set of measures may be used, depending on whether the business starts with the market and uses a customer-focused approach or alternatively adopts a competitor-centered perspective. To overcome possible myopia, the evidence of advantage should illuminate the sources of advantage as well as the manifestations of superior customer value and cost superiority, and should be based on a balance of customer and competitor perspectives.
Provides a systematic presentation of the economic field of industrial organization, which is concerned with how productive activities are brought into harmony with the demand for goods and services through an organizing mechanism, such as a free market, and how variations and imperfections in the organizing mechanism affect the successful satisfying of an economy's wants. Of the three market mechanisms (tradition, central planning, and free markets), the field of industrial organization deals primarily with the market system approach. This book primarily emphasizes the manufacturing and mineral extraction sectors of industrialized economies, with less discussion of wholesale and retail distribution, services, transportation, and public utilities. Beginning with a discussion of the welfare economics of competition and monopoly, the structure of industries in the U.S. and abroad and their determinants are described, including motives for mergers and their effects. Extended analysis of pricing, product policy, and technological innovation then follows. Antitrust, price fixing, related restraints, structural monopolies, regulation, and price discrimination are examined, as are the complex policies governing pricing relationships between vertically linked firms. The role of advertising in product differentiation and the roles of market structure and product variety are identified. Innovation, patents, and their relation to market structure are explored. Overall, this analysis seeks to identify attributes or variables that influence economic performance and to build theories about the links between these attributes and end performance. (TNM)
This study examines relationships among strategy, distinctive competence, and organizational performance. The analysis focuses on the perceptions of top managers in four industries (plastics, semiconductors, automotives, and air transportation). Findings indicate that these managers perceive four strategy types, Defender, Prospector, Analyzer, and Reactor, to be present within their industry. Defenders, Prospectors, and Analyzers all show competence in general and financial management. Beyond these two functions, Defenders and Prospectors have identifiable but different configurations of distinctive competence, while Analyzers' special capabilities are considerably less apparent. Reactors, as expected, have no consistent pattern of distinctive competence. Finally, although the data are only suggestive, Defenders, Prospectors, and Analyzers consistently outperform Reactors in competitive industries, but not in an industry that is highly regulated.
Although the concept of moderator variables has been used extensively in marketing-related studies, much confusion persists as to how they are defined and identified. To alleviate this confusion, the authors present a typology of moderator variables with a framework for identifying their presence and type. Simulated data are used to illustrate and validate the proposed framework.
Industrial classifications were used as a basis for operational definitions of both industrial and organizational task environments. A codification of six environmental dimensions was reduced to three: munificence (capacity), complexity (homogeneity-heterogeneity, concentration-dispersion), and dynamism (stability-instability, turbulence). Interitem and factor analytic techniques were used to explore the viability of these environmental dimensions. Implications of the research for building both descriptive and normative theory about organization-environment relationships are advanced.
This problem solver offers a wealth of remedies for American industry's neglect of competitive manufacturing strategies and its resulting loss of productivity. Drawing upon the example of world-class and foreign manufacturers, the book illustrates what American industry must do in terms of manufacturing capability to regain a preeminent spot in the marketplace.
This research addresses three questions: (1) Why are some organizations more market-oriented than others? (2) What effect does a market orientation have on employees and business performance? (3) Does the linkage between a market orientation and business performance depend on the environmental context? The findings from two national samples suggest that a market orientation is related to top management emphasis on the orientation, risk aversion of top managers, interdepartmental conflict and connectedness, centralization, and reward system orientation. Furthermore, the findings suggest that a market orientation is related to overall (judgmental) business performance (but not market share), employees' organizational commitment, and esprit de corps. Finally, the linkage between a market orientation and performance appears to be robust across environmental contexts that are characterized by varying degrees of market turbulence, competitive intensity, and technological turbulence.
Most attribute the current malaise of American business to the virus of inflation, the paralysis brought on by government regulation and tax policy, or the feverish price escalation by OPEC. Another view, however, says that responsibility rests not with general economic forces alone, but also with the failure of American managers to keep their companies technologically competitive over the long run. This controversial diagnosis draws on the authors' own extensive work in the production field as well as their recent association with Harvard's International Senior Managers Program in Vevey, Switzerland. Having taken a long, hard look from abroad at how American managers operate, they propose some strong medicine for improving the health of American business. 9 references.
Strategy is about seeking new edges in a market while slowing the erosion of present advantages. Effective strategy moves are grounded in valid and insightful monitoring of the current competitive position coupled with evidence that reveals the skills and resources affording the most leverage on future cost and differentiation advantages. Too often the available measures and methods do not satisfy these requirements. Only a limited set of measures may be used, depending on whether the business starts with the market and uses a customer-focused approach or alternatively adopts a competitor-centered perspective. To overcome possible myopia, the evidence of advantage should illuminate the sources of advantage as well as the manifestations of superior customer value and cost superiority, and should be based on a balance of customer and competitor perspectives.
An attempt is made to relate several common dimensions of business-level strategy to their organizational contexts. A model is developed that predicts the structural and environmental correlates of a strategy on the basis of the number and uncertainty of its contingencies. It is shown that strategies of complex product innovation, marketing differentiation, market breadth and conservative cost control each have pronounced but very different relationships with bureaucratic and organic structural devices of uncertainty reduction, differentiation and integration, and with environmental dynamism, heterogeneity and hostility.
Strategic management studies frequently involve obtaining retrospective data from strategic-level managers. The use of this data acquisition methodology has received relatively little codification and little critical review or comment. This seems unfortunate, as discussion and codification of the methodology could be useful for those academic researchers and corporate staff who study strategic decisions and organizational processes and for those managers who may be asked to provide the retrospective data. This paper is an attempt to remedy the current state of affairs. In particular, the paper reviews several sources of the data inaccuracies that commonly affect retrospective data and offers guidelines for reducing the occurrence or magnitude of these inaccuracies.
Strategic management researchers often encounter problems obtaining objective measures of selected aspects of organizational performance that are reliable and valid. With privately-held firms, such data are frequently unavailable. With conglomerate business units, all or parts of such data are inextricably interwoven with corporate-wide data. This paper examines the usefulness of subjective performance measures, obtained from top management teams, when problems are encountered in obtaining accurate performance data.
Accurate marketing research depends on accurate user judgments regarding their needs. However, for very novel products or in product categories characterized by rapid change—such as “high technology” products—most potential users will not have the real-world experience needed to problem solve and provide accurate data to inquiring market researchers. In this paper I explore the problem and propose a solution: Marketing research analyses which focus on what I term the “lead users” of a product or process.
Lead users are users whose present strong needs will become general in a marketplace months or years in the future. Since lead users are familiar with conditions which lie in the future for most others, they can serve as a need-forecasting laboratory for marketing research. Moreover, since lead users often attempt to fill the need they experience, they can provide new product concept and design data as well.
In this paper I explore how lead users can be systematically identified, and how lead user perceptions and preferences can be incorporated into industrial and consumer marketing research analyses of emerging needs for new products, processes and services.
textlessptextgreaterThe literature reflects remarkably little effort to develop a framework for understanding the implementation of the marketing concept. The authors synthesize extant knowledge on the subject and provide a foundation for future research by clarifying the construct's domain, developing research propositions, and constructing an integrating framework that includes antecedents and consequences of a market orientation. They draw on the occasional writings on the subject over the last 35 years in the marketing literature, work in related disciplines, and 62 field interviews with managers in diverse functions and organizations. Managerial implications of this research are discussed.textless/ptextgreater
textlessptextgreaterMarketing academicians and practitioners have been observing for more than three decades that business performance is affected by market orientation, yet to date there has been no valid measure of a market orientation and hence no systematic analysis of its effect on a business's performance. The authors report the development of a valid measure of market orientation and analyze its effect on a business's profitability. Using a sample of 140 business units consisting of commodity products businesses and noncommodity businesses, they find a substantial positive effect of a market orientation on the profitability of both types of businesses.textless/ptextgreater
The marketing concept helped American businesses gain dominant positions in the world's economy. Yet, the rush to strategic planning forced out the marketing concept at many companies. Now, as American firms lose their positions, the marketing concept is back in vogue.
Sumario: The evolution of strategic planning thinking -- Concepts and tools for strategic planning -- Methodology for the development of a corporate strategic plan -- The congruency between organizational structure and strategy
Among the most widely cited books in the social sciences, The External Control of Organizations has long been required reading for any student of organization studies. The book, reissued on its 25th anniversary as part of the Stanford Business Classics series, includes a new preface written by Jeffrey Pfeffer, which examines the legacy of this influential work in current research and its relationship to other theories. The External Control of Organizations explores how external constraints affect organizations and provides insights for designing and managing organizations to mitigate these constraints. All organizations are dependent on the environment for their survival. As the authors contend, âit is the fact of the organizationâs dependence on the environment that makes the external constraint and control of organizational behavior both possible and almost inevitable.â Organizations can either try to change their environments through political means or form interorganizational relationships to control or absorb uncertainty. This seminal book established the resource dependence approach that has informed so many other important organization theories.
Eight broad areas appear to be important for new product success in a high-technology environment: 1) market knowledge gained through frequent and intense customer interaction, which leads to high benefit-to-cost products; 2) and 3) planning and coordination of the new product process, especially the R&D phase; 4) emphasis on marketing and sales; 5) management support for the product throughout the development and launch stages; 6) the contribution margin of the product; 7) early market entry; 8) proximity of the new product technologies and markets to the existing strengths of the developing unit.
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