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Book part
Publication date: 3 July 2018

Neil A. Morgan and Douglas W. Vorhies

The marketing literature indicates that a firm’s organizational culture plays a critical role in determining its market orientation (MO) and thereby the firm’s ability to…

Abstract

Purpose

The marketing literature indicates that a firm’s organizational culture plays a critical role in determining its market orientation (MO) and thereby the firm’s ability to successfully adapt to its environment to achieve superior business performance. However, our understanding of the organizational culture of market-oriented firms and its relationship with business performance remains limited in a number of important ways. Drawing on the behavioral theory of the firm and the competing values theory perspective on organizational culture, our empirical study addresses important knowledge gaps concerning the relationship between firm MO culture, MO behaviors, innovation, customer satisfaction, and business performance.

Methodology/approach

We used a survey methodology with Clan Cultural Orientation, Adhocracy Cultural Orientation, Market Cultural Orientation, and Hierarchy Cultural Orientation Clan. Market Orientation Behaviors, Innovation, and Customer Satisfaction and CFROAt (Net Operating Income + Depreciation and AmortizationDisposal of Assets)/Total Assets.

Findings

The overall fit of the first Confirmatory Factor Analysis (CFA) containing the three MO behavior sub-scales, the four organizational culture scales, and the innovation and satisfaction performance measures was good with a χ 2 = 760.89, 524 df, p < 0.001; CFI = 0.916 and RMSEA = 0.055. The overall fit of the second CFA containing the business strategy, bureaucracy, and customer expectations control variables was also good with a χ 2 = 243.26, 156 df, p < 0.001; CFI = 0.937 and RMSEA = 0.061. We also subsequently ran a third CFA in which the MO behavior construct was modeled as a second-order factor comprising the three first-order sub-scales (generation of market intelligence, dissemination of market intelligence, and responsiveness to market intelligence) each of which in turn arose from the relevant survey indicants. This measurement model also fit well with the data with a χ 2 = 84.06, 63 df, p < 0.039; CFI = 0.955 and RMSEA = 0.047. Regressions using seemingly unrelated regressions (SUR) with control variables and with R 2 values ranging from 0.28 to 0.54.

Practical implications

MO culture has an important direct effect on firms’ financial performance as well as an indirect effect via MO behaviors and innovations. Importantly, our findings suggest that MO culture facilitates value-creating behaviors above and beyond those identified in the marketing literature as MO behaviors. In contrast to a series of studies by Deshpandé and colleagues (1993, 1999, 2000, 2004), our empirical results suggest the value of the internally oriented Clan and to a lesser degree Hierarchy cultural orientations as well as the more externally oriented Adhocracy and Market cultural orientations. The benchmark ideal MO culture profile we identify is consistent with organization theory conceptualizations of strong balanced organizational cultures in which each of the four competing values orientations is simultaneously exhibited to a significant degree (e.g., Cameron & Freeman, 1991). Our findings indicate that the organizational culture domain of MO appears to be at least as important (if not more so) in explaining firm performance and suggest that researchers need to re-visit the conceptualization, and perhaps more importantly the operationalization, of MO as a central construct in strategic marketing thought.

Originality/value

In building an MO culture, an important first step is to assess the firm’s existing organizational culture profile (e.g., Goodman, Zammuto, & Gifford, 2001). Organization theory researchers have developed competing values theory-based organizational culture assessment tools that can provide managers with an easily accessible mechanism for accomplishing this (Cameron & Quinn, 1999). The profile of the firm’s existing culture and the profile of the ideal culture for MO from our study can then be plotted on a “spider’s web” graphical representation (e.g., Hooijberg & Petrock, 1993). This aids the comparison of the firm’s existing cultural profile with the ideal MO profile, enabling managers to easily diagnose the areas, direction, and magnitude MO culture profile “gaps” in their firm (Cameron, 1997). Specific gap-closing plans and tactics for gaps on each of the four cultural orientations can then be identified as part of the development of a change management program designed to create an MO culture profile (e.g., Chang & Wiebe, 1996). Cameron and Quinn’s (1999) workbook provides managers with an excellent operational resource for planning and undertaking such gap-closing organizational culture change initiatives.

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Innovation and Strategy
Type: Book
ISBN: 978-1-78754-828-2

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Article
Publication date: 1 January 1993

Kenneth E. Clow and Douglas W. Vorhies

Reports on research into measurement of consumer expectations.Examines the stability of consumer expectations and considers whetherthe measurement of expectations should occur…

1213

Abstract

Reports on research into measurement of consumer expectations. Examines the stability of consumer expectations and considers whether the measurement of expectations should occur before or after the service encounter. Discusses the measurement issue as a way of building competitive advantage by meeting consumer expectations of the service.

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Journal of Services Marketing, vol. 7 no. 1
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 1 December 1999

Douglas W. Vorhies, Michael Harker and C.P. Rao

Although progress has been made in understanding market‐driven businesses from a theoretical perspective, relatively few empirical studies have addressed the capabilities needed…

7260

Abstract

Although progress has been made in understanding market‐driven businesses from a theoretical perspective, relatively few empirical studies have addressed the capabilities needed to become market‐driven and the performance advantages accruing to firms possessing these capabilities. One of the barriers faced has been in defining what is meant by the term “market‐driven”. Develops a multi‐dimensional measure useful for assessing the degree to which a firm is market‐driven. Presents evidence that market‐driven business units developed higher levels of six vital marketing capabilities (in the areas of market research, pricing, product development, channels, promotion, and market management) than their less market‐driven rivals and significantly outperformed these rival business units on four measures of organizational performance.

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European Journal of Marketing, vol. 33 no. 11/12
Type: Research Article
ISSN: 0309-0566

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Book part
Publication date: 19 September 2019

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Marketing in a Digital World
Type: Book
ISBN: 978-1-78756-339-1

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Book part
Publication date: 3 July 2018

Abstract

Details

Innovation and Strategy
Type: Book
ISBN: 978-1-78754-828-2

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Book part
Publication date: 31 January 2015

Reynaldo Dannecker Cunha and Thelma Valeria Rocha

This study examines the influence of marketing strategies on export ventures undertaken by micro and small enterprises (MSEs) established in emerging countries and in Brazil…

Abstract

This study examines the influence of marketing strategies on export ventures undertaken by micro and small enterprises (MSEs) established in emerging countries and in Brazil specifically. We aim to determine whether a direct relationship exists between marketing strategies and internationalization performance results and to evaluate the influence of entrepreneurial marketing (EM) on export marketing strategy (EMS) and performance. A conceptual model based on the work of Cavusgil and Zou (1994) is developed and used to analyze MSE characteristics (firm and products), EMS, EM, and export marketing performance. An empirical survey was conducted on 173 Brazilian MSEs across various sectors, and data analysis was performed using structural equation modeling. The results highlight the importance of marketing activities in shaping MSE export performance, mainly by adapting prices to targeted markets, thereby improving product competitiveness. The study also emphasizes the importance of company international competence (expertise) and EM as influencers of export performance. The study contributes to the field through its application of the EM construct, by adapting the conceptual MSE model and by filling empirical gaps knowledge. The results will guide MSE management strategies that will be critical to the Brazilian economy and to other emerging countries.

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Entrepreneurship in International Marketing
Type: Book
ISBN: 978-1-78441-448-1

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Article
Publication date: 25 February 2020

Dale A. Cake, Vikas Agrawal, George Gresham, Douglas Johansen and Anthony Di Benedetto

The purpose of this paper is to develop a radical innovation launch model that shows the relationship of the market, entrepreneurial and learning orientations with each other…

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Abstract

Purpose

The purpose of this paper is to develop a radical innovation launch model that shows the relationship of the market, entrepreneurial and learning orientations with each other, with radical innovation launch marketing capabilities and the subsequent effect on radical innovation launch success. It will provide practitioners with best practices and add to current marketing theory.

Design/methodology/approach

An online survey was done, resulting in a usable sample of 176 radical innovation launch practitioners from a cross-section of US companies, namely, small to large, business-to-business and business-to-consumer firms offering a variety of products and services. A partial least squares structural equation modeling technique was used to test construct relationships and the effect on each other.

Findings

An organizational learning orientation has a direct effect on the market and entrepreneurial orientations. Learning and marketing orientations are critical links to having radical innovation launch marketing capabilities. While an entrepreneurial orientation has a direct effect on radical innovation launch success, proper, dynamic marketing capabilities are a significant driver. Over 40% of the variance in radical innovation launch success is directly or indirectly affected by the three studied strategic orientations and radical innovation launch marketing capabilities.

Research limitations/implications

This study was conducted only in the USA. A cross-cultural study could be undertaken. Type and size of firm, type of external environment, radical innovation department structure, transformational leadership strength and competitive intensity effect could be studied. New, up-to-date adaptable marketing capabilities should be researched and validated.

Practical implications

For radical innovation launch success, it is critical that a firm develop the market, entrepreneurial and learning orientations and have specific, dynamic marketing capabilities in place. Existing managers should be trained, or new talent hired, to give the firm the capability to develop unique, radical innovation launch strategic, brand identity and new target market plans, to select and manage new downstream partners, and to have quick, customer launch feedback mechanisms in place.

Originality/value

An empirical study of the effect of all three strategic orientations on radical innovation launch marketing capabilities and subsequent radical innovation launch success has not been previously addressed.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 10
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 16 November 2010

Yi‐Chun Huang and Yen‐Chun Jim Wu

This study seeks to identify the factors influencing the performance of green new product development. Additionally, an examination of the relationship between green performance…

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Abstract

Purpose

This study seeks to identify the factors influencing the performance of green new product development. Additionally, an examination of the relationship between green performance and financial performance is carried out.

Design/methodology/approach

The study employed survey instrument data collected from 181 companies in hi‐tech industries including electrical, electronics, and information industries of Taiwan. Exploratory factor analysis and multiple regressions were used for hypothesis testing.

Findings

Corporate environmental commitment, environmental benchmarking, R&D strength, and cross‐functional integration significantly positively influenced financial performance. Additionally, green product innovation performance has a positive effect on financial performance.

Research limitations/implications

A longitudinal research design is necessary to validate these claims of causality. Furthermore, since respondents provided data on both the independent and dependent variables, there is the possibility that the correlations were inflated as a result of single‐source bias.

Practical implications

The identification of the specific actions of both top management support and environmental benchmarking must be implemented for green new product development to occur. Additionally, successful GNPD needs to be underpinned by an environmental product strategy that is explicit, clearly defined, and linked to the overall strategy of the firm.

Social implications

Taiwan's rapid industrialization has generated numerous environmental problems. Moving forward, the Taiwanese government should implement advanced green management concepts to keep abreast of the global environmental movement. Enterprises have to be dedicated to developing GNPD; achieving GNPD success will bring great challenges for firms in Taiwan.

Originality/value

The integration of innovation, new product development, and green management philosophies is explored in order to develop and empirically test a theoretical framework of the organizational factors. This paper is the first to conduct a large sample survey of the hi‐tech industries including the electrical, electronics, and information industries in Taiwan to examine organizational factor effects on GNPD success, and the relationship between green product innovation performance and financial performance.

Details

Management Decision, vol. 48 no. 10
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 11 November 2014

Hardeep Chahal and Jagmeet Kaur

– The purpose of the study is to develop, measure and empirically validate marketing capabilities (MARKCAPB) scale in banking sector.

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Abstract

Purpose

The purpose of the study is to develop, measure and empirically validate marketing capabilities (MARKCAPB) scale in banking sector.

Design/methodology/approach

Data are collected from a branch manager and three next senior managers of 144 branches of 21 public and 7 private banks operating in Jammu city, North India.

Findings

The study finds that marketing capabilities are of multi-dimensional scale, comprising three dimensions – outside-in, inside-out and spanning. Further, the study results demonstrate that all three dimensions are significantly related to marketing capabilities; with outside-in capabilities to be most strongly associated with marketing capabilities development followed by inside-out and spanning dimensions.

Research limitations/implications

The study focused on only operational perspective of marketing capabilities to develop a reliable and valid measurement scale. Hence, developing marketing capabilities scale from remaining three perspectives – intellectual capital, marketing mix and competition would prove to be an interesting line of future research. Second, as marketing capabilities scale is developed and tested in banks, that too, in a single city of a country (India), it becomes important to examine whether the same scale can be applied to different sectors and countries. Moreover, future research could be carried on at identifying various antecedents that facilitate the development of marketing capabilities.

Originality/value

This is the first study of this type that contributes to the development of multi-dimensional scale of marketing capabilities in banking sector in Indian context. The study provides banks’ managers with the deeper understanding of how to develop and establish marketing capabilities in an organisation. Besides, it also put light on the significant role of outside-in, inside-out and spanning capabilities that facilitate the managers in enhancing financial performance by focusing on varied sub dimensions such as relationship, regularity, communication (outside-in), Web technology and employee bonding (inside-out), advertising, pricing and product/service skills (spanning).

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Measuring Business Excellence, vol. 18 no. 4
Type: Research Article
ISSN: 1368-3047

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Article
Publication date: 11 July 2016

Wantao Yu and Ramakrishnan Ramanathan

The purpose of this paper is to provide an initial analysis of the roles of functional capabilities in adopting environmental management practices (EMP) and improving…

2029

Abstract

Purpose

The purpose of this paper is to provide an initial analysis of the roles of functional capabilities in adopting environmental management practices (EMP) and improving environmental performance from an organizational capability perspective.

Design/methodology/approach

By combing survey data and archival data from 121 UK-based manufacturing firms, this study explores the relationships among functional capabilities (marketing and operations), EMP and environmental performance.

Findings

The results show that marketing and operations capabilities significantly affect EMP, which in turn leads to improved environmental performance. More specifically, this study finds that EMP fully mediates the relationship between marketing capability and environmental performance.

Practical implications

The results of this study provide guidance for managers considering how to develop environmental capability in order to improve environmental performance.

Originality/value

This study addresses a demonstrable gap in the existing literature that few empirical studies have explored the potential effects of functional capabilities on implementing EMP.

Details

Industrial Management & Data Systems, vol. 116 no. 6
Type: Research Article
ISSN: 0263-5577

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