Development of a model on profit orientation with organizational variables in the context of emerging economies

Abstract

Purpose

The purpose of the study was to develop a model on profit orientation (PRO) with organizational variables, learning orientation practises (LOP), empowerment self-determination (ESD), organization citizenship behaviour altruism (OCBA), customer orientation (CO), professional development (PD) and performance orientation (PO).

Design/methodology/approach

The research was conducted by using a structured survey questionnaire on 411 Indian managers engaged in various public and private manufacturing and services firms. The data were analyzed using SPSS 20 and AMOS 18 for structured equation modelling.

Findings

The results of this research imply that the exogenous variables were LOP, ESD and OCBA. The intervening variables were CO, PD and PO. The endogenous variable was PRO. LOP showed significant positive relationship with CO and PD. ESD had significant positive relationship with CO, PD and PO. OCBA showed significant positive relationship with CO and PO. PD had significant positive relationship with CO and PO. PO had significant positive relationship with CO. PRO had significant positive relationship with LOP, OCBA, CO, PD and PO.

Research limitations/implications

This research attempt is one of the first of its kind which developed a model relating PRO with three internal organizational exogenous variables: LOP, ESD and OCBA. The model also had three intervening variables: CO, PD and PO.

Practical implications

In the context of emerging economies characterized by high potentiality for market growth and increased competition, the human resource managers involved in developing PRO culture can take the inputs from this study to design elements of LOP, ESD, OCBA, CO, PD and PO among the employees.

Originality/value

The model on PRO is one of its kind relating PRO with LOP, ESD, OCBA, CO, PD and PO in the context of emerging economy markets.

Citation

Sekhar Bhattacharyya, S. and Jha, S. (2014), "Development of a model on profit orientation with organizational variables in the context of emerging economies", Journal of Asia Business Studies, Vol. 8 No. 3, pp. 264-277. https://doi.org/10.1108/JABS-05-2013-0026