A Comprehensive Review of International Research on Market Orientation and the Development of an Applied Model

Document Type : Research Paper

Authors

1 PhD Candidate in Business Management, Department of Management, Yazd Branch, Islamic Azad University, Yazd, Iran

2 Professor, Department of Management, Yazd Branch, Islamic Azad University, Yazd, Iran

3 Associate Professor, Department of Textile Engineering, Yazd Branch, Islamic Azad University, Yazd, Iran

4 Assistant Professor, Department of Management, Yazd Branch, Islamic Azad University, Yazd, Iran

Abstract

Considering the importance of performance improvement in the third millennium and its dependence on market orientation as a valuable construct, the aim of the present study was to conduct a comprehensive review of the literature on market orientation and to provide an applied model. Thus, a mixed-methods research that involved quantitative and qualitative measures was adopted. To this end, a systematic review was carried out on the international articles about market orientation and performance indexed in the Web of Science (WoS) database during 1900-2020. The quality of the articles was assessed by the CASP checklist. Then, to analyze and map the scientific literature in the field of market orientation, the VOSviewer software was used. In the second stage, through the content analysis with the NVIVO software, the key variables and criteria related to market orientation were extracted from the research articles in the field. Accordingly, a model was developed based on the grounded theory approach. Interpretive structural modeling (ISM) was carried out using the MIC MAC software to assess the constitutive variables of the model and identify the interrelationship of the variables. The results showed that market orientation may be improved in conjunction with learning orientation, entrepreneurship orientation, strategic human resource management, innovation capability, marketing capability, information and communication capability, organizational structure, dynamism of organizational units, total quality management, competitive structure, and business strategy. The results also revealed that increased market knowledge can lead to a better competitive advantage in market, namely competitive and financial performances. Through analyzing the works on market orientation and developing a comprehensive model, the present study provides insights for researchers in the field of marketing and serves as an applied framework for managers and practitioners in various industries.

Keywords

Main Subjects

References

Abdollahi, H., Razm, K., & Tan, H. (2014). TQM and market orientation’s impact on SMEs & quot performance. Management Science Letters, 4(5), 887-892.
Acosta, A., Crespo, A., & Agudo, J. (2018). Effect of market orientation, network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs). International Business Review, 27, 1128-1140.
Ahmadi, Z. (2019). Moderating effects on the market orientation and strategic performance relationship in public housing. Baltic Journal of Management, 14(4), 559-577.
Almamun, A., Mohiuddin, M., Fazal, S. A., & Ahmad, G. B. (2018). Effect of entrepreneurial and market orientation on consumer engagement and performance of manufacturing SMEs. Management Research Review, 41(1), 133-147.
Armario, J. M., Ruiz, D. M., & Armario, E. M. (2008). Market orientation and internationalization in small and medium‐sized enterprises. Journal of Small Business Management, 46(4), 485-511.
Aryanto, V. D. W., Wismantoro, Y., & Widyatmoko, K. (2020). Implementing Eco-Innovation by utilizing the internet to enhance firm’s marketing performance: Study of green Batik small and medium enterprises in Indonesia. International Journal of E-business Research, 14(1), 21-36
Aydin, H. (2020). Market orientation and product innovation: The mediating role of technological capability. European Journal of Innovation Management, 24(4), 1233-1267.
Beyene, K. T., Shi, C. S., & Wu, W. W. (2016). Linking culture, organizational learning orientation and product innovation performance: The case of Ethiopian manufacturing firms. South African Journal of Industrial Engineering, 27(1), 88-101.
Bititci, U., Garengo, P., Dörfler, V., & Nudurupati, S. (2012).  Performance measurement: Challenges for tomorrow. International Journal of Management Reviews, 14(3), 305-327.
Burgess, S. M., & Nyajeka, P. (2007). Market orientation and performance in low-income countries: The case of Zimbabwean retailers. Advances in International Management Journal, 20, 215-257.
Cacciolatti, L., & Lee, S. H. (2016). Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organizational power. Journal of Business Research, 69(12), 5597-5610.
Chen, Y., Tang, G., Jin, J., Li, J., & Paillé, P. (2015). Linking market orientation and environmental performance: The influence of environmental strategy, employee’s environmental involvement, and environmental product quality. Journal of Business Ethics, 127(2), 479-500.
Chi, T. (2013). Market orientation, firm strategy, and business performance: An empirical study of Chinese apparel industry. International Textile and Apparel Association Annual Conference Proceedings, 70(1), 4-5.
Creswell, J. W. (2007). Qualitative inquiry and research design: Choosing among five approaches. Sage publications.
Creswell, J. W., & Clark, V. L. P. (2017). Designing and conducting mixed methods research. Sage publications.
 Danaie Fard, H.,alvani, s.,&Adel, A.(2004). Qualitative Research Methodology in Management: a Comprehensive Approach. Tehran:  Saffar Ishraqi Publications                                                                                                                                                                                           
Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 54, 37–52.
Demirbag, M., Koh, S. L., Tatoglu, E., & Zaim, S. (2006). TQM and market orientation’s impact on SMEs’ performance. Industrial Management & Data Systems, 106(8), 1206-1228.
Doyle, P., & Stern, P. (2006). Marketing management and strategy. Prentice Hall.
Dursun, T., & Kilic, C. (2017). Conceptualization and measurement of market orientation: A review with a roadmap for future research. International Journal of Business and Management, 12(3), 1-18.
Ellis, P. D. (2006). Market orientation and performance: A meta‐analysis and cross‐national comparisons. Journal of Management Studies, 43(5), 1089-1107.
Fernandes, C. I., Ferreira, J. J., Lobo, C. A., & Raposo, M. (2020). The impact of market orientation on the internationalization of SMEs. Review of International Business and Strategy, 30(1), 123-143.
Green, K. W., Inman, R. A., Brown, G., & Willis, T. H. (2005). Market orientation: Relation to structure and performance. Journal of Business & Industrial Marketing, 20(6), 276-284.
Green, K. W., McGaughey, R., & Casey, K. M. (2006). Does supply chain management strategy mediate the association between market orientation and organizational performance? Supply Chain Management: An International Journal, 11(5), 407-414.
Grönroos, C. (2006). On defining marketing: Finding a new roadmap for marketing. Marketing
Theory, 6(4), 395-417.
Habib, M. A., Bao, Y., & Ilmudeen, A. (2020). The impact of green entrepreneurial orientation, market orientation and green supply chain management practices on sustainable firm performance. Cogent Business & Management, 7(1), 1743616.
Hernández-Linares, R., Kellermanns, F. W., & López-Fernández, M. C. (2020). Dynamic capabilities and SME performance: The moderating effect of market orientation. Journal of Small Business Management, 59(1), 162-195.
Javalgi, R. R. G., Whipple, T. W., Ghosh, A. K., & Young, R. B. (2005). Market orientation, strategic flexibility, and performance: Implications for services providers. Journal of Services Marketing, 19(4), 212-221.
Kaffashpour, A., & Najafi Siahroodi, M. (2009). The effect of marketing research on performance through market orientation culture in travel agencies in Mashhad. Change Management Research Letter, 13(2), 111-131. [In Persian]
Kakapour, S., Morgan, T., Parsinejad, S., & Wieland, A. (2016). Antecedents of corporate entrepreneurship in Iran: The role of strategic orientation and opportunity recognition. Journal of Small Business & Entrepreneurship, 28(3), 251-266.
Khodaie Meydan Shah, M., & Maleki Nezhad, P. (2019). Analytical study of the sustainable supply chain quality management in the sesame products industry. Standard and Quality Management Quarterly, 9(2), 34-45. [In Persian]
Kirca, A. H. (2011). The effects of market orientation on subsidiary performance: Empirical evidence from MNCs in Turkey. Journal of World Business, 46(4), 447-454.
Kohli, A. K., & Jaworski, B. (1990). Market orientation: The construct, research propositions and managerial implications. Journal of Marketing, 54(2), 1-18.
Küster, I., & Vila, N. (2011). The market orientation-innovation-success relationship: The role of internationalization strategy. Innovation, 13(1), 36-54.
Levitt, Theodore. 1960. "Marketing Myopia." Harvard Business Review 38: 45-56
Levitt, T. (1969). The marketing mode. McGraw- Hill.
Lichtenthal, J. D., & Wilson, D. T. (1992). Becoming market oriented. Journal of Business Research, 24(3), 191-207.
Mavondo, F., & Farrell, M. (2003). Cultural orientation: Its relationship with market orientation, innovation and organizational performance. Management Decision, 41(3), 241-249.
Maydeu, O. A., & Lado, N. (2003). Market orientation and business economic performance. International Journal of Service Industry Management, 14(3), 284-309.
Moayerifard, H., & Kianmehr, E. (2017). Customer-oriented marketing strategies. Marketing Publications.
Murray, J. Y., Gao, G. Y., & Kotabe, M. (2011). Market orientation and performance of export ventures: The process through marketing capabilities and competitive advantages. Journal of the Academy of Marketing Science, 39(2), 252-269.
Naderibeni, M., Ebrahimzadeh Pezeshki, R., Abolghasemi, M., & Malekinezhad, P. (2017). Designing a conceptual model of organizational entrepreneurship using Mikhailov’s integrated approach to fuzzy hierarchical analysis and interpretive structural modeling: A case study on Sports and Youth Organization of Yazd. Applied Research in Sports Management Quarterly, (6)3, 127-139. [In Persian]    
Najafi-Tavani, S., Sharifi, H., & Najafi-Tavani, Z. (2016). Market orientation, marketing capability, and new product performance: The moderating role of absorptive capacity. Journal of Business Research, 69(11), 5059-5064.
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54, 20– 35.
Nayebzadeh, S. (2013). Market orientation: A new model. Journal of Basic and Applied Scientific Research, 3, 472-483.
O’Cass, A., & Ngo, L. V. (2011). Winning through innovation and marketing: Lessons from Australia and Vietnam. Industrial Marketing Management, 40(8), 1319-1329.
O’Cass, A., & Sok, P. (2013). Exploring innovation driven value creation in B2B service firms: The roles of the manager, employees, and customers in value creation. Journal of Business Research, 66(8), 1074-1084.
Osuagwu, C. (2019). Market orientation: Conceptualization, components and performance-impacts: A literature review and conceptual framework. International Journal of Marketing Studies, 11(2), 102-114.
Ruekert, R. (1992). Developing a market orientation: An organizational strategy perspective. International Journal of Research in Marketing, 9(3), 225– 245.
Savabieh, Sh. Nayebzadeh,Sh. Abghari,R. Hatami-Nasab, SH. (2020). A systematic review and a synthesis research on market orientation studies. International Journal of Information Science and Management, 18(2), 245-261.
Seifollahi, N. (2019). Investigating the effect of market orientation and managerial stability on the financial performance of companies. Financial Economy Quarterly, 13(48), 227-261. [In Persian]
Shafique, I., & Munazza, s. (2020). Linking elements of entrepreneurial orientation and firm performance: Examining the moderation of environmental dynamism. Middle East Journal of Management, 7(1), 93-108
Sheikh, A. A., Shahzad, A., & Ku Ishak, A. (2017). The impact of market orientation, top management support, use of e-marketing and technological opportunism on the firm performance: A mediated moderation and moderated mediation analysis. Abasyn Journal of Social Sciences, 10(2), 212-234.
Song, M., & Parry, M. E. (2009). The desired level of market orientation and business unit performance. Journal of the Academy of Marketing Science, 37(2), 144-160.
Strauss, A., & Corbin, J. (1990). Basics of qualitative research. Sage publications.
Sundström, A., Hyder, A. S., & Chowdhury, E. H. (2020). Market-oriented CSR implementation in SMEs with sustainable innovations: An action research approach. Baltic Journal of Management, 15(5), 775-795.
Tajeddini, K. (2011). The effects of innovativeness on effectiveness and efficiency. Education, Business and Society: Contemporary Middle Eastern Issues, 4(1), 6-18.
Tajeddini, K. (2013). Using grounded theory to model market orientation experiences at practice. International Journal of Business Excellence, 6(5), 553-571.
Tajeddini, K. Trueman, M., & Larsen, G. (2006). Examining the effect of market orientation on innovativeness. Journal of Marketing Management, 22(5-6), 529-551.
Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011. Journal of Business Research, 69(12), 5611-5619.
Talaja, A., Miočević, D., Pavičić, J., & Alfirević, N. (2017). Market orientation, competitive advantage and business performance: Exploring the indirect effects. Društvena istraživanja, 26(4), 583-604.
Teimouri Asl, Y. (2015). Developing a new model of market orientation in banking industry: A case study on Mehr Eqtesad Bank [Unpublished PhD dissertation]. Payame Noor University. [In Persian]
Tseng, P. H., & Liao, C. H. (2015). Supply chain integration, information technology, market orientation and firm performance in container shipping firms. The International Journal of Logistics Management, 26(1), 82-106.
Udriyah, U., Tham, J., & Azam, S. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs. Management Science Letters, 9(9), 1419-1428.
Velean, D., Shoham, A., & Asseraf, Y. (2014). Conceptualization of MILE orientation (market innovative learning entrepreneurial) for global businesses. Procedia-Social and Behavioral Sciences, 109, 837-840.
Wahyuni, N. M., & Sara, I. M. (2020). The effect of entrepreneurial orientation variables on business performance in the SME industry context. Journal of Workplace Learning, 32(1), 35-62.
Wang, Y., Zeng, D., Di Benedetto, C. A., & Song, M. (2013). Environmental determinants of responsive and proactive market orientations. Journal of Business & Industrial Marketing, 28(7), 565-576.
Wei, L. Q., & Lau, C. M. (2008). The impact of market orientation and strategic HRM on firm performance: The case of Chinese enterprise. Journal of International Business Studies, 39(6), 980-995.
WHDP, U. G. (2015). Relationship between market orientation and organizational performance [Unpublished PhD dissertation]. University of Ruhuna.
Yang, Z., Deng, L. J., & Fang, E. (2010). Market orientation, strategic flexibility and performance: The moderating effect of environmental uncertainty. China Soft Science, 46(9), 130-139.
 
 
Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 15, Issue 4
October 2022
Pages 683-700

Files

Share

How to cite

Statistics