Article 2 Flashcards
Who wrote “Market Orientation: A Meta-Analytic Review and Assessment of Its Antecedents and Impact on Performance”?
Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market Orientation: A Meta-Analytic Review and Assessment of its Antecedents and Impact on Performance. Journal of Marketing, 69(2), 24-41. https://doi-org.ru.idm.oclc.org/10.1509/jmkg.69.2.24.60761
What is “Assessing Performance Outcomes in Marketing” about?
The authors highlight the importance of understanding how marketing influences firm performance. Despite a large body of research, there is no standardized framework to conceptualize and measure performance outcomes, leading to inconsistent results across empirical studies. This paper seeks to address these inconsistencies by developing a theory-based framework for assessing performance outcomes and evaluating existing literature on this subject. The framework integrates concepts like mediators, moderators, and antecedents of marketing outcomes, offering valuable insights into improving cumulative knowledge in marketing research.
What are the antecedents being studied in the Kirca et al. article?
top management factors, interdepartmental factors, and organizational systems
What are top management factors in Kirca et al.?
Top managers shape the values and orientation of an organization.
As such, top management emphasis on market orientation has a positive impact on the level of an organization’s market orientation
What are interdepartmental factors in Kirca et al.?
Inter-departmental factors include interdepartmental connectedness and conflict. Interdepartmental connectedness, or the extent of formal and informal contact among employees across various departments, enhances market orientation by leading to greater sharing and use of information. Interdepartmental conflict, or
the tension between departments that arises from divergent goals, inhibits concerted responses to market needs and thus diminishes market orientation
What are organizational systems in Kirca et al.?
The text discusses four key factors influencing market orientation in organizations: formalization, centralization, market-based reward systems, and market-oriented training.
Formalization: Defined roles and procedures through rules can hinder market orientation by limiting information utilization and responsiveness to market changes.
Centralization: A lack of decision-making authority delegation restricts information dissemination, negatively impacting market orientation.
Market-based reward systems: These incentivize employees based on market-oriented behaviors, promoting actions that align with market needs.
Market-oriented training: This enhances employees’ awareness of customer needs, encouraging actions that support market orientation.
Overall, high formalization and centralization can impede market responsiveness, while reward systems and training can foster a market-oriented culture.
What are the consequences of market orientation in Kirca et al 2005?
organizational performance, customer consequences, innovation consequences, and employee consequences
What are customer consequences of market orientation in Kirca et al?
include the perceived quality of products or services that a firm provides, customer loyalty, and customer satisfaction with the organization’s products and services
What is organizational performance indicator of market orientation in Kirca et al 2005?
Organizational performance consists of cost-based performance measures, which reflect performance after accounting for the costs of implementing a strategy (e.g., profit measures), and revenue-based performance measures, which do not account for the cost of implementing a strategy (e.g., sales and market share).
What are innovation consequences of market orientation in Kirca et al?
Innovation consequences include firms’ innovativeness; their ability to create and implement new ideas, products,and processes; and new product performance (i.e., the success of new products in terms of market share, sales, return on investment, and profitability)
What are employee consequences of market orientation in Kirca et al?
by instilling a sense of pride and camaraderie among employees, market orientation enhances organizational commitment (i.e., willingness to sacrifice for the organization), employee team spirit, customer orientation (i.e., the motivation of employees to satisfy customer needs), and job satisfaction
What are the substantive moderators that influence market orientation, in the Kirca et al model?
1) Market/environmental turbulence, 2) Technological turbulence, 3) Competitive intensity; these factors have been proven to not have a significant effect on organizational performance in the Kirca et al. framework
What are the measurement and sample characteristics in Kirca et al model?
- Cost-based versus revenue-based performance
- Objective versus subjective measures
- Single- versus multi-item measures
- Manufacturing versus service firms
- Cultural context
What are key takeaways of Kirca et al.?
- The evidence shows significant, negative associations between market orientation and interdepartmental conflict
- Higher degrees of customization in services could also result in higher costs due to lower production efficiency and the hiring and training of qualified employees
- market orientation could be viewed as a failure-prevention approach (a “hygiene” factor) in service firms and a success-inducing approach in manufacturing firms
what is market orientation?
a firm’s ability to gather and utilize market intelligence to respond effectively to customer needs and market dynamics.
