Market orientation and manufacturing performance of Indian SMEs

European Journal of Marketing - Tập 45 Số 7/8 - Trang 1172-1193 - 2011
Sanjaya Singh Gaur1, Hari Vasudevan2, Ajai Gaur3
1AUT Business School, Auckland University of Technology, Auckland, New Zealand
2Dwarkadas J. Sanghvi College of Engineering, Mumbai, India
3Department of Management and Global Business, Rutgers Business School, Newark, New Jersey, USA

Tóm tắt

PurposeThis paper sets out to investigate the link between market orientation and manufacturing performance for small and medium enterprises in India.Design/methodology/approachThe paper collected the data for this research through intensive surveys of the CEOs or top managers of small and medium‐sized enterprises in India. The paper utilized scales, well established in literature, and revalidated them for the Indian context. It also utilized confirmatory factor analysis for scale validation, and hierarchical regression analysis for testing the hypotheses.FindingsThis study found a positive link between two sub‐dimensions of market orientation – customer orientation and inter‐functional coordination – and manufacturing performance. Competitor orientation, however, did not have a positive impact on manufacturing performance. Further, the paper found that firm resources and competitive intensity moderate the relationship between some of the sub‐dimensions of market orientation and firm performance.Research limitations/implicationsThis study is particularly relevant for personnel involved in the manufacturing functions as it studies the effect of market orientation on manufacturing performance. It is high time that firms with manufacturing focus realize the value of market forces and revamp various production processes to be more responsive to market needs and demands.Originality/valueThis research looks at manufacturing performance, rather than a firm's financial performance, and thereby helps in understanding the intervening processes that potentially lead to superior firm performance. It also identifies some important contingency factors, enriching the literature on market orientation. Finally, the empirical context of this research is quite novel and useful for European and other foreign firms trying to operate in emerging economies such as India.

Từ khóa


Tài liệu tham khảo

Anderson, J. and Gerbing, D. (1988), “Structural equation modeling in practice: a review and recommended two‐step approach”, Psychological Bulletin, Vol. 103, pp. 411‐23.

Appiah‐Adu, K. (1998), “Market orientation and performance: empirical tests in a transition economy”, Journal of Strategic Marketing, Vol. 6 No. 1, pp. 25‐45.

Baker, W. and Sinkula, J. (1999), “The synergistic effect of market orientation and learning organization on organizational performance”, Journal of the Academy of Marketing Science, Vol. 27, pp. 411‐27.

Bamford, C., Dean, T. and McDougall, P. (1999), “An examination of the impact of initial founding conditions and decisions upon the performance of new bank start‐ups”, Journal of Business Venturing, Vol. 15, pp. 253‐77.

Barney, J. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17, pp. 100‐20.

Bentler, P. (1992), EQS Structural Equations Program Manual, BMDP Statistical Software, Los Angeles, CA.

Bhuian, S.N. (1998), “An empirical examination of market orientation in Saudi Arabian manufacturing companies”, Journal of Business Research, Vol. 43, pp. 13‐25.

Bollen, K. (1989), Structural Equations with Latent Variables, Wiley & Sons, New York, NY.

Cano, C.R., Carrillat, F.A. and Jaramillo, F. (2004), “A meta‐analysis of the relationship between market orientation and business performance: evidence from five continents”, International Journal of Research in Marketing, Vol. 21, pp. 179‐200.

Chen, M. and Miller, D. (1994), “Competitive attack, retaliation and performance: an expectancy‐valence framework”, Strategic Management Journal, Vol. 15 No. 2, pp. 85‐102.

Cua, K., McKone, K. and Schroeder, R. (2001), “Relationships between implementation of TQM, JIT and TPM and manufacturing performance”, Journal of Operations Management, Vol. 19, pp. 675‐94.

Davis, D., Morris, M. and Allen, J. (1991), “Perceived environmental turbulence and its effects on selected entrepreneurship and organizational characteristics in industrial firms”, Journal of Academy of Marketing Science, Vol. 19, pp. 43‐91.

Day, G. and Wensley, R. (1988), “Assess advantage: a framework for diagnosing competitive superiority”, Journal of Marketing, Vol. 52, pp. 1‐20.

Dess, G. and Beard, D. (1984), “Dimensions of organizational task environments”, Administrative Science Quarterly, Vol. 19, pp. 52‐73.

Dwairi, M., Bhuian, S.N. and Jurkus, A. (2007), “Revisiting the pioneering market orientation model in an emerging economy”, European Journal of Marketing, Vol. 41, pp. 713‐21.

Gatignon, H. and Robertson, T.S. (1991), “Innovative decision process”, in Robertson, T.S. and Kassarjian, H.H. (Eds), Handbook of Consumer Behavior, Prentice‐Hall, Englewood Cliffs, NJ, pp. 316‐48.

Gatignon, H. and Xuereb, J. (1997), “Strategic orientation of the firm and new product performance”, Journal of Marketing Research, Vol. 34 No. 1, pp. 77‐90.

Gaur, A.S. (2007), “Essays on strategic adaptation and firm performance during institutional transition”, National University of Singapore, Singapore, unpublished doctoral dissertation.

Gaur, A.S. and Kumar, V. (2008), “International diversification, firm performance and business group affiliation: empirical evidence from India”, British Journal of Management, in press.

Gefen, D., Detmar, S. and Boudreau, M. (2000), “Structural equation modeling and regression: guidelines for research practice”, Communications of the Association for Information Systems, Vol. 7 No. 7, pp. 1‐78.

Golden, P., Doney, P., Johnson, D. and Smith, J. (1985), “The dynamics of a market orientation in transition economies: a study of Russian firms”, Journal of International Marketing, Vol. 3, pp. 29‐49.

Gotteland, D. and Boule, J‐M. (2006), “The market orientation‐new product performance relationship: redefining the moderating role of environmental conditions”, International Journal of Research in Marketing, Vol. 23, pp. 171‐85.

Gray, B., Matear, S., Boshoff, C. and Matheson, P. (1998), “Developing a better measure of market orientation”, European Journal of Marketing, Vol. 32, pp. 884‐903.

Greenley, G. (1995), “Market orientation and company performance: empirical evidence from UK companies”, British Journal of Management, Vol. 6, pp. 1‐13.

Grewal, R. and Tansuhaj, P. (2001), “Building organizational capabilities for managing economic crisis: the role of market orientation and strategic flexibility”, Journal of Marketing, Vol. 65 No. 2, pp. 67‐80.

Harris, L. (2001), “Market orientation and performance: objective and subjective empirical evidence from UK companies”, Journal of Management Studies, Vol. 38 No. 1, pp. 17‐43.

Harris, L. and Ogbonna, E. (2001), “Strategic human resource management, market orientation and organizational performance”, Journal of Business Research, Vol. 51, pp. 157‐66.

Hayes, R.H. and Pisano, G.P. (1994), “Beyond world class: the new manufacturing strategy”, Harvard Business Review, Vol. 72, January‐February, pp. 77‐86.

Homburg, C. and Pflesser, C. (2000), “A multiple layer model of market‐oriented organizational culture: measurement issues and performance outcomes”, Journal of Marketing Research, Vol. 37, pp. 449‐62.

Jaworski, J. and Kohli, K. (1993), “Market orientation: antecedents and consequences”, Journal of Marketing, Vol. 57 No. 3, pp. 53‐70.

Kohli, A. and Jaworski, B. (1990), “Marketing orientation: the construct, research propositions and managerial implications”, Journal of Marketing, Vol. 54 No. 2, pp. 1‐18.

Langerak, F. (2001), “The effect of market orientation on the behaviors of salespersons and purchasers, channel relationships, and performance of manufacturers”, International Journal of Research in Marketing, Vol. 18 No. 3, pp. 221‐34.

Lengnick‐Hall, C.A. (1992), “Innovation and competitive advantage: what we know and what we need to learn”, Journal of Management, Vol. 18 No. 2, pp. 399‐429.

Lukas, B. and Ferrel, O. (2000), “The effect of market orientation on product innovation”, Journal of the Academy of Marketing Science, Vol. 28, pp. 239‐47.

Matsuno, K. and Mentzer, J. (2000), “The effects of strategy type on the market orientation‐performance relationship”, Journal of Marketing, Vol. 64, pp. 1‐16.

Matsuno, K., Mentzer, J. and Ozsomer, A. (2002), “The effects of entrepreneurial proclivity and market orientation on business performance”, Journal of Marketing, Vol. 66, pp. 18‐32.

Miller, D. and Freisen, P. (1982), “Innovation in conservative and entrepreneurial firms: two models of strategic momentum”, Strategic Management Journal, Vol. 3, pp. 1‐25.

Miller, J. and Roth, A. (1994), “A taxonomy of manufacturing strategies”, Management Science, Vol. 40, pp. 285‐304.

Miltenburg, J. (1995), Manufacturing Strategy: How to Formulate and Implement a Winning Plan, Productivity Press, Portland, OR.

Morash, E. and Clinton, S. (1998), “Supply chain integration: customer value through collaborative closeness versus operational excellence”, Journal of Marketing Theory and Practice, Vol. 6 No. 4, pp. 104‐20.

Narver, C. and Slater, F. (1990), “The effect of market orientation on business profitability”, Journal of Marketing, Vol. 54 No. 4, pp. 20‐35.

Nwokah, N.G. (2008), “Strategic market orientation and business performance: the study of food and beverages organizations in Nigeria”, European Journal of Marketing, Vol. 42, pp. 279‐86.

Pelham, A.M. (1999), “Influence of environment, strategy and market orientation on performance in small manufacturing firms”, Journal of Business Research, Vol. 45 No. 1, pp. 33‐46.

Pelham, A.M. and Wilson, D. (1996), “A longitudinal study of the impact of market structure, firm structure, strategy and market orientation culture on dimensions of small‐firm performance”, Journal of the Academy of Marketing Science, Vol. 24 No. 1, pp. 27‐43.

Podsakoff, P.M. and Organ, D.W. (1986), “Self‐reports in organizational research: problems and prospects”, Journal of Management, Vol. 12 No. 4, pp. 531‐44.

Porter, M.E. (1980), Competitive Strategy, The Free Press, New York, NY.

Ruekert, R. and Walker, O. (1987), “Marketing's interaction with other functional units: a conceptual framework and empirical evidence”, Journal of Operations Management, Vol. 51, pp. 1‐19.

Sharma, S. (2000), “Managerial interpretations and organizational context as predictors of corporate choice of environmental strategy”, Academy of Management Journal, Vol. 43, pp. 681‐97.

Siguaw, J., Simpson, P. and Baker, T. (1998), “Effects of supplier market orientation on distributor market orientation and the channel relationship: the distributor perspective”, Journal of Marketing, Vol. 62, pp. 99‐111.

Singh, D.A. (2009), “Export performance of emerging market firms”, International Business Review, Vol. 18 No. 4, pp. 321‐30.

Singh, D. and Gaur, A.S. (2009), “Business group affiliation, firm governance and firm performance: evidence from China and India”, Corporate Governance: An International Review, Vol. 17 No. 4, pp. 411‐25.

Slater, S. and Narver, J. (1994), “Does competitive environment moderate the market orientation‐performance relationship?”, Journal of Marketing, Vol. 58 No. 1, pp. 46‐55.

Slater, S. and Narver, J. (1998), “Customer‐led and market‐oriented: let's not confuse the two”, Strategic Management Journal, Vol. 19, pp. 1001‐16.

Slater, S. and Narver, J. (2000), “The positive effect of market orientation on business profitability: a balanced replication”, Journal of Business Research, Vol. 48, pp. 69‐73.

Steele, L.W. (1989), Managing Technology: The Strategic View, McGraw‐Hill, New York, NY.

Subramanian, R. and Gopalakrishna, P. (2001), “The market orientation‐performance relationship in the context of a developing economy: an empirical analysis”, Journal of Business Research, Vol. 53, pp. 1‐13.

Tyler, B. and Gnyawali, D. (2002), “Mapping managers' market orientations regarding new product success”, Journal of Product Innovation Management, Vol. 19, pp. 259‐76.

Vickery, K., Droge, C. and Markland, E. (1993), “Production competence and business strategy: do they affect business performance?”, Decision Sciences, Vol. 24 No. 2, pp. 435‐55.

Weerawardena, J. and O'Cass, A. (2004), “Exploring the characteristics of marketing‐driven firms and antecedents of sustained competitive advantage”, Industrial Marketing Management, Vol. 33 No. 5, pp. 419‐28.

Zou, S. and Cavusgil, S.T. (1996), “Global strategy: a review and an integrated conceptual framework”, European Journal of Marketing, Vol. 30 No. 1, pp. 52‐69.

Thông tin
Thông tin xuất bản

European Journal of Marketing

Tập 45 Số 7/8

1172-1193

Thông tin tác giả