Market orientation and its impact on organizational performance
Keywords:
Market orientation, marketing management, strategic marketing, information management, organizational performanceAbstract
This article reviews the concept of market orientation and its meaning, proposed models, and impact on organizational performance. It begins by introducing the emergence of the concept and presents two models for which extensive bibliographic literature is available, namely Kohli and Jaworski (MARKOR), and Narver and Slater (MKTOR). Both cases include a description of the model, the validation approach, and the relationship to the performance of the companies being reviewed. It also discusses an adaptation of these models to the Ibero-American context. Next, it provides a number of critical observations of models and results of works that relate market orientation (measured using one of the two models) to company performance from different perspectives. Lastly, it discusses the conclusions and managerial consequences that can be derived from a market-oriented approach.
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References
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2. Ambler, T., Kokkinaki, F., y Puntoni, S. (2004). Assessing Marketing Performance: Reasons for Metrics Selection. Journal of Marketing Management , 20, 475-498.
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8. Briggs, R. (Diciembre de 2006). Marketers Who Measure the Wrong Thing Get Faulty Answers. Journal of Advertising Research , 462 -468.
9. Chen, S.-C., y Quester, P. (2009). A value-based perspective of market orientation and customer service. Journal of Retailing and Consumer Services , 16, 197-206.
10. Conduit, J., y Mavondo, F. (2001). How critical is internal customer orientation to market orientation? Journal of Business Research , 51, 11-24.
11. Cook, W., y Talluri, V. (2004). How the Pursuit of ROMI is Changing Marketing Management. Journal of Advertising Research , 44 (3), 244-254.
12. Farrell, M., y Oczkowski, E. (1997). An Analysis of the MKTOR and MARKOR Measures of Market Orientation: An Australian Perspective. Marketing Bulletin , 8, 30-40.
13. Gabel, T. (1995). Market orientation: theoretical and methodological concerns. En B. Stern, y G. Zinkhan (Ed.), Proceedings of the American Marketing Association Summer Educators’ Conference, (págs. 368-375). Chicago.
14. Gauzente, C. (1999). Comparing Market Orientation Scales: A Content Analysis. Marketing Bulletin , 10, 76-82.
15. Grønholdt, L., y Martensen, A. (2006). Key Marketing Performance Measures. The Marketing Review , 6 (3), 243-252.
16. Gruca, T., y Rego, L. (2005). Customer Satisfaction, Cash Flow, and Shareholder Value. Journal of Marketing , 69 (3), 115-130.
17. Gupta, S., y Lehmann, D. (2006). Customer Lifetime Value and Firm Valuation. Journal of Relationship Marketing , 5 (2/3), 87-110.
18. Han, J., Kim, N., y Srivastava, R. (1998). Market Orientation and Organizational Performance: Is Innovation a Missing Link? Journal of Marketing , 62, 30-45.
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20. Harrison-Walker, J., y Perdue, G. (2001). The role of marketing in the valuation of a firm: exploring the underlying mechanism. Journal of Strategic Marketing , 15, 377-386.
21. Haugland, S., Myrtveit, I., y Nygaard, A. (2007). Market orientation and performance in the service industry: A data envelopment analysis. Journal of Business Research , 60, 1191-1197.
22. Hooley, G., Greenley, G., Cadogan, J., y Fahy, J. (2005). The performance impact of marketing resources. Journal of Business Research , 58, 18-27.
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27. Kohli, A., y Jaworski, B. (1990). Market Orientation: The Construct, Research Propositions, and Managerial Implications. Journal of Marketing , 54, 1-18.
28. Kohli, A., Jaworski, B., y Kumar, A. (1993). MARKOR: A Measure of Marketing Orientation. Journal of Marketing Research , 30, 467 - 477.
29. Kumar, M., y Basu, P. (2008). Effectiveness of marketing expenditures: Abrand level case study. Journal of Targeting, Measurement and Analysis for Marketing , 16 (3), 181-188.
30. Kyriakopoulos, K., y Moorman, C. (2004). Tradeoffs in marketing exploitation and exploration strategies: The overlooked role of market orientation. International Journal of Research in Marketing , 21, 219-240.
31. Langerak, F. (2003). An Appraisal of Research on the Predictive Power of Market Orientation. European Management Journal , 21 (4), 447-464.
32. Langerak, F. (2001). Effects of market orientation on the behaviors of salespersons and purchasers, channel relationships, and performance of manufacturers. International Journal of Research in Marketing , 18, 221-234.
33. Lehmann, D. (2004). Linking Marketing to Financial Performance and Firm Value. Journal of Marketing , 68, 73-75.
34. Lenskold, J. (2003). Marketing ROI: the path to campaign, customer, and corporate profitability. New York: McGraw-Hill.
35. Martín-Consuegra, D., y Esteban, Á. (2007). Market orientation and business performance: An empirical investigation in the airline industry. Journal of Air Transport Management , 13, 383-386.
36. Mazaira, A., Dopico, A., y González, E. (2005). Incidencia del grado de orientación al mercado de las organizaciones empresariales en el desarrollo de las capacidades estratégicas de marketing. Revista Europea de Dirección y Economía de la Empresa , 14 (3), 181-208.
37. McDonald, M. (2006). Do your marketing strategies create or destroy shareholder value? Database Marketing and Customer Strategy Management , 13 (2), 102-107.
38. Mengüç, B. (1996). The influence of the market orientation of the firm on sales force behavior and attitudes: Further empirical results. International Journal of Research in Marketing , 277-291.
39. Moorman, C., y Lehmann, D. (Edits.). (2004). Assessing marketing strategy performance. Cambridge: Marketing Science Institute.
40. Narver, J., y Slater, S. (Octubre de 1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing , 20 - 35.
41. Pelham, A. (1993). Mediating and moderating influences on the relationship between market orientation and performance. Doctoral dissertation, Pennsylvania State University.
42. Porter, M. (1991). Towards a Dynamic Theory of Strategy . Strategic Management Journal , 12, 95-117.
43. Rivera, J., y Molero, V. (2006). The Construct of “Market Orientation” in an IberoAmerican Context. Journal of Euromarketing , 15 (3), 23-49.
44. Rodríguez, C., Carrillat, F., y 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 , 21, 179-200.
45. Rust, R., Ambler, T., Carpenter, G., Kumar, V., y Srivastava, R. (2004). Measuring Marketing Productivity:Current Knowledge and Future Directions. Journal of Marketing , 68 (4), 76-89.
46. Ryals, L., Dias, S., y Berger, M. (2007). Optimising marketing spend: return maximisation and risk minimisation in the marketing portfolio. Journal of Marketing Management , 23 (9-10), 991-1011. 47. Slater, S., y Narver, J. (2000). The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication. Journal of Business Research , 48, 69-73.
48. Stewart, D. (2008). How Marketing Contributes to the Bottom Line. Journal of Advertising Research , 48 (1), 94-105.
49. Subramanian, R., y Gopalakrishna, P. (2001). The market orientation - performance relationship in the context of a developing economy An empirical analysis. Journal of Business Research , 53, 1-13.
50. Ward, K. (2003). Marketing finance: turning marketing strategies into shareholder value. Oxford: Elsevier Butterworth-Heinemann.
51. Wills, S., y Webb, S. (2007). Measuring the value of insight - it can and must be done. International Journal of Market Research , 49 (2), 155-165.
2. Ambler, T., Kokkinaki, F., y Puntoni, S. (2004). Assessing Marketing Performance: Reasons for Metrics Selection. Journal of Marketing Management , 20, 475-498.
3. Anderson, E., Fornell, C., y Mazvancheryl, S. (2004). Customer Satisfaction and Shareholder Value. Journal of Marketing , 68 (4), 172-185.
4. Ashill, N. (2007). Return on marketing investment: the new marketing paradigma. Journal of Strategic Marketing , 15 (5), 375-376.
5. Barroso, C., Martín, E., y Rodríguez-Bobada, J. (2005). Factores moderadores de la relación Orientación al Mercado-Resultados: un análisis multinivel. Cuadernos de Economía y Dirección de la Empresa (25), 103-132.
6. Barwise, P., y Farley, J. (2004). Marketing Metrics: Status of Six Metrics in Five Countries. European Management Journal , 22 (3), 257-262.
7. Boluda, K. (1999). Propuesta de medición del grado de comportamiento orientado al mercado del vendedor industrial. Investigaciones Europeas de Dirección y Economía de la Empresa , 5 (3), 63-76.
8. Briggs, R. (Diciembre de 2006). Marketers Who Measure the Wrong Thing Get Faulty Answers. Journal of Advertising Research , 462 -468.
9. Chen, S.-C., y Quester, P. (2009). A value-based perspective of market orientation and customer service. Journal of Retailing and Consumer Services , 16, 197-206.
10. Conduit, J., y Mavondo, F. (2001). How critical is internal customer orientation to market orientation? Journal of Business Research , 51, 11-24.
11. Cook, W., y Talluri, V. (2004). How the Pursuit of ROMI is Changing Marketing Management. Journal of Advertising Research , 44 (3), 244-254.
12. Farrell, M., y Oczkowski, E. (1997). An Analysis of the MKTOR and MARKOR Measures of Market Orientation: An Australian Perspective. Marketing Bulletin , 8, 30-40.
13. Gabel, T. (1995). Market orientation: theoretical and methodological concerns. En B. Stern, y G. Zinkhan (Ed.), Proceedings of the American Marketing Association Summer Educators’ Conference, (págs. 368-375). Chicago.
14. Gauzente, C. (1999). Comparing Market Orientation Scales: A Content Analysis. Marketing Bulletin , 10, 76-82.
15. Grønholdt, L., y Martensen, A. (2006). Key Marketing Performance Measures. The Marketing Review , 6 (3), 243-252.
16. Gruca, T., y Rego, L. (2005). Customer Satisfaction, Cash Flow, and Shareholder Value. Journal of Marketing , 69 (3), 115-130.
17. Gupta, S., y Lehmann, D. (2006). Customer Lifetime Value and Firm Valuation. Journal of Relationship Marketing , 5 (2/3), 87-110.
18. Han, J., Kim, N., y Srivastava, R. (1998). Market Orientation and Organizational Performance: Is Innovation a Missing Link? Journal of Marketing , 62, 30-45.
19. Harris, L., y Ogbonna, E. (2001). Strategic human resource management, market orientation, and organizational performance. Journal of Business Research , 51, 157-166.
20. Harrison-Walker, J., y Perdue, G. (2001). The role of marketing in the valuation of a firm: exploring the underlying mechanism. Journal of Strategic Marketing , 15, 377-386.
21. Haugland, S., Myrtveit, I., y Nygaard, A. (2007). Market orientation and performance in the service industry: A data envelopment analysis. Journal of Business Research , 60, 1191-1197.
22. Hooley, G., Greenley, G., Cadogan, J., y Fahy, J. (2005). The performance impact of marketing resources. Journal of Business Research , 58, 18-27.
23. Hult, T., Ketchen, D. j., y Slater, S. (2005). Market Orientation and Performance: An Integration of Disparate Approaches. Strategic Management Journal , 26, 1173-1181.
24. Jagpal, S. (2008). Fusion for Profit. New York: Oxford University Press.
25. Jaworski, B., y Kohli, A. (1993). Market Orientation: Antecedents and Consequences. Journal of Marketing , 57, 53 - 70.
26. Klein, A., y Swartzendruber, T. (2003). A User`s Guide to Marketing ROI. Marketing Health Services , 23 (3), 33-36.
27. Kohli, A., y Jaworski, B. (1990). Market Orientation: The Construct, Research Propositions, and Managerial Implications. Journal of Marketing , 54, 1-18.
28. Kohli, A., Jaworski, B., y Kumar, A. (1993). MARKOR: A Measure of Marketing Orientation. Journal of Marketing Research , 30, 467 - 477.
29. Kumar, M., y Basu, P. (2008). Effectiveness of marketing expenditures: Abrand level case study. Journal of Targeting, Measurement and Analysis for Marketing , 16 (3), 181-188.
30. Kyriakopoulos, K., y Moorman, C. (2004). Tradeoffs in marketing exploitation and exploration strategies: The overlooked role of market orientation. International Journal of Research in Marketing , 21, 219-240.
31. Langerak, F. (2003). An Appraisal of Research on the Predictive Power of Market Orientation. European Management Journal , 21 (4), 447-464.
32. Langerak, F. (2001). Effects of market orientation on the behaviors of salespersons and purchasers, channel relationships, and performance of manufacturers. International Journal of Research in Marketing , 18, 221-234.
33. Lehmann, D. (2004). Linking Marketing to Financial Performance and Firm Value. Journal of Marketing , 68, 73-75.
34. Lenskold, J. (2003). Marketing ROI: the path to campaign, customer, and corporate profitability. New York: McGraw-Hill.
35. Martín-Consuegra, D., y Esteban, Á. (2007). Market orientation and business performance: An empirical investigation in the airline industry. Journal of Air Transport Management , 13, 383-386.
36. Mazaira, A., Dopico, A., y González, E. (2005). Incidencia del grado de orientación al mercado de las organizaciones empresariales en el desarrollo de las capacidades estratégicas de marketing. Revista Europea de Dirección y Economía de la Empresa , 14 (3), 181-208.
37. McDonald, M. (2006). Do your marketing strategies create or destroy shareholder value? Database Marketing and Customer Strategy Management , 13 (2), 102-107.
38. Mengüç, B. (1996). The influence of the market orientation of the firm on sales force behavior and attitudes: Further empirical results. International Journal of Research in Marketing , 277-291.
39. Moorman, C., y Lehmann, D. (Edits.). (2004). Assessing marketing strategy performance. Cambridge: Marketing Science Institute.
40. Narver, J., y Slater, S. (Octubre de 1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing , 20 - 35.
41. Pelham, A. (1993). Mediating and moderating influences on the relationship between market orientation and performance. Doctoral dissertation, Pennsylvania State University.
42. Porter, M. (1991). Towards a Dynamic Theory of Strategy . Strategic Management Journal , 12, 95-117.
43. Rivera, J., y Molero, V. (2006). The Construct of “Market Orientation” in an IberoAmerican Context. Journal of Euromarketing , 15 (3), 23-49.
44. Rodríguez, C., Carrillat, F., y 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 , 21, 179-200.
45. Rust, R., Ambler, T., Carpenter, G., Kumar, V., y Srivastava, R. (2004). Measuring Marketing Productivity:Current Knowledge and Future Directions. Journal of Marketing , 68 (4), 76-89.
46. Ryals, L., Dias, S., y Berger, M. (2007). Optimising marketing spend: return maximisation and risk minimisation in the marketing portfolio. Journal of Marketing Management , 23 (9-10), 991-1011. 47. Slater, S., y Narver, J. (2000). The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication. Journal of Business Research , 48, 69-73.
48. Stewart, D. (2008). How Marketing Contributes to the Bottom Line. Journal of Advertising Research , 48 (1), 94-105.
49. Subramanian, R., y Gopalakrishna, P. (2001). The market orientation - performance relationship in the context of a developing economy An empirical analysis. Journal of Business Research , 53, 1-13.
50. Ward, K. (2003). Marketing finance: turning marketing strategies into shareholder value. Oxford: Elsevier Butterworth-Heinemann.
51. Wills, S., y Webb, S. (2007). Measuring the value of insight - it can and must be done. International Journal of Market Research , 49 (2), 155-165.
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Published
2011-12-01
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How to Cite
Market orientation and its impact on organizational performance. (2011). LIBRE EMPRESA, 8(2), 47-68. https://revistas.unilibre.edu.co/index.php/libreempresa/article/view/3008
