Market Orientation in Rapidly Internationalizing Small Companies — Evidence from the Software Industry

For more than a decade, researchers have been aware of the increased pace of small-firm internationalization and the greater effect of these rapidly growing small businesses on the wealth, international trade, and job-creation opportunities of countries. Due to the small size of the home market, Finnish companies have been generally considered highly interested in internationalization. One particular domain in which rapid internationalization has been considered feasible is the global software business, with its knowledge-intensive nature and high growth potential. However, over time the failure rate of small entrepreneurial firms has remained especially high in high-technology markets. One of the reasons for this seems to lie in the fact that these companies are often formed by people with a strong technological background but limited competences in other areas. Further, research on the marketing capabilities of rapidly internationalizing high-tech firms has been scarce thus far. In addition, while there is much research on the first years of operations of rapidly internationalizing companies, it is not well known what becomes of them later on. Therefore, there is a need for more investigation into the managerial mindset, competences and decision-making in these small companies, especially from the perspective of how they acquire and exploit market knowledge, and enhance their networking capabilities in order to promote international expansion. The present study focuses on market orientation in small software firms that internationalize their operations rapidly in global software markets. It builds on qualitative data to illustrate how these companies develop their market-oriented product-market strategies during the process of increasing international commitment. It also shows how they manage their network relationships in order to be able to offer better customer service and to thrive in the fierce global competition. The study was conducted in the empirical context of Finnish small software companies, and the main data consists of interviews with top managers in these businesses. The interviews were designed to cover a minimum period of five years of the company's international operations, thus offering a retrospective in-depth perspective on market orientation, internationalization and partnerships in the given context. One particular focus is on less successfully internationalized software companies, and the challenges they face when approaching international markets. This study makes a significant contribution to the literature on market orientation for several reasons. First, building on data from the software industry, it clarifies the existing theory in the context of rapid internationalization and network relationships. Secondly, it provides a good body of evidence on market orientation in both successfully and less successfully internationalized companies, and identifies the key related differences between the two company groups. Thirdly, it highlights the importance of inter-firm networks in the rapid internationalization of small software firms, providing companies with important market knowledge and, in some cases, management challenges. Fourthly, this investigation clarifies market orientation in the context of different software-product strategies, thus, combining the perspectives of market orientation in both manufacturing and services. In sum, the results of the study are significant for both small software firms and public-policy makers since they shed light on the market-oriented managerial mindset and the market-information gathering and sharing processes that are needed in successful rapid internationalization.

THE MARKETING OF SOCIAL ENTERPRISES: Understanding the concepts of marketing and market orientation of social enterprises within the context of Pakistani market

The concepts of social entrepreneurship and social enterprises have been extensively discussed in the previous two decades, yet the topic is still not matured yet. Most of the available literature is focused on defining these terms. Similarly, limited number of authors has discussed the marketing function of these enterprises or how marketing is interpreted in social entrepreneurship models. However, there is a plethora of literature on marketing entailing many different theories, amongst which the newest one is the “market orientation concept”. Market orientation is a mix of customer orientation, competitor orientation and inter-functional coordination suggesting marketing to be a part of the business philosophy. This study focuses on the marketing and market orientation of social enterprises while giving an overview of the literature of marketing and market orientation in social enterprises. This study aims to provide two basic questions, 1) what is the literature on marketing and market orientation of social enterprises while explaining the literature of social enterprises in Pakistan and 2) how these concepts are interpreted in social enterprises in Pakistani market. Key features of research methodology include case study approach while conducting thematic analysis using thematic networks. The results indicate that only a limited number of authors have discussed market orientation concept in social enterprises. The results from the interview data indicate the usage of marketing by a firm unconsciously without a specific marketing department. In addition to that, it has been found that in social enterprise world competition is tackled through a win-win approach with a view that many enterprises working for society improve the society which is the basic mission of any social enterprise. The data also showed that in Pakistani market, social enterprise concept is not legally used yet, which allows for more room for innovation. This study intends to give a new perspective to the theorists to use market orientation concept in social enterprises and also to managers to use marketing as their business philosophy in order to satisfy the stakeholders for better delivery of their businesses and as well for social good.

Market orientation and performance in entrepreneurial SMEs

Market orientation is the organizational culture that creates the necessary behaviors for continuous additional value for customers and thus continuous superior performance for the business. The field of market orientation has been studied repeatedly during the past two decades. Yet research has concentrated on large firms in large domestic markets creating a need for diversifying research. The master’s thesis at hand examined the general incidence of market orientation among SMEs from five different industries as well as its consequences on SME performance. The empirical part of the thesis was conducted with a web-based survey that resulted in 255 responses. The data of the survey was analyzed by statistical analysis. The incidence of market orientation varied among dimensions and market orientation did not show any direct effect on firm performance. Customer orientation was the only dimension that showed a direct (positive) effect. On the contrary, moderating effects were found which indicate that the effect of market orientation in SMEs is influenced by other factors that should receive further attention. Also industry specific differences were discovered and should be further examined.

The Interplay between Market Orientation and Entrepreneurial Orientation - Empirical Evidence from SMEs

The purpose of this thesis is to investigate how the dimensions of market orientation and entrepreneurial orientation are carried out in small and medium-sized enterprises (SME). In addition, the research aims to answer how these strategic orientations are apparent in SMEs, how the orientations co-vary, and how the dimensions of orientations are carried out in successful SMEs. The qualitative case study was participated by 16 SMEs. The research sample was gathered trough face-to-face interviews, consisting of Likert scale statements and open-ended questions. The main restriction of implementing market and entrepreneurial orientations in SMEs were scarce resources. Thus, the enterprises were required to make trade-offs between the different dimensios of orientations. Risk-aversive enterprises had emphasis on reactive customer orientation whereas, willing to take risks was generally related to proactiveness. Proactive enterprises utilized interfunctional coordination, and innovativeness was supported by value network coordination. The majority of the successful enterprises were growth-oriented, aiming to be technologial leaders in their industries. The successful firms placed similar emphasis on customer and product orientation.

Internal material logistics development in customer-driven production

Työn tavoitteena oli synkronoida yleinen materiaalivirta tuotannon kanssa. Pyrkimyksenä oli virtaviivaistaa materiaalivirta, jotta materiaalin määrä, sekä turhat työvaiheet tuotantoalueella vähenisivät. Päämääränä oli vähentää materiaalilavojen määrää lattialla, sekä parantaa materiaalitoimitusten OTD (On-Time-Delivery) prosenttia.Teoreettinen osa käsittelee nykypäivän toimitusketjun tärkeimpiä elementtejä. Keskeisenä asiana perehdytään materiaalivirtaan ja sen tehokkaaseen hallintaan. Työ esittelee myös synkronisen johtamismallin periaatteet, sekä materiaalivirran synkronoimisen tuotannon kanssa.Empiirinen osuus kuvaa yrityksen materiaalihallinnan nykypäivän tilanteen, sen keskeiset ongelmat, sekä uuden toimintamalliehdotuksen. Työ esittelee kaksi pilottia, joiden tulokset varmistivat uuden virtaviivaistetun materiaalivirran ja täydennysmallin toimivuuden.Työn tulokset osoittavat, miten uusi materiaalin täydennysmalli vähentää materiaalilavojen, sekä jalostamattoman työn määrää tuotantoalueella.

The Effects of Service Quality, Customer Satisfaction and Customer Perceived Value on Behavioral Intentions

The intent of this research was to develop a model that describes the extent to which customer behavioral intentions are influenced by service quality, customer satisfaction and customer perceived value in the business-to-business service context. Research on customer behavioral intentions is quite fragmented and no generalized model has been presented. Thus, there was need for empirical testing. This study builds on the services marketing theory and assesses the relationships between the identified constructs. The data for the empirical analysis was collected via a quantitative online survey and a total of 226 usable responses were obtained for further analysis. The model was tested in an employment agency service setting. The measures used in this survey were first assessed by using confirmatory factor analysis (CFA) after which the hypothesized relationships were further verified using structural equation modeling (SEM) in LISREL 8.80. The analysis identified that customer satisfaction played a pivotal role in the model as it was the only direct antecedent of customer behavioral intentions, however, customer perceived value showed a strong indirect impact on buying intentions via customer satisfaction. In contrast to what was hypothesized, service quality and customer perceived value did not have a direct positive effect on behavioral intentions. Also, a contradicting finding with current literature was that sacrifice was argued to have a direct but positive impact on customer perceived value. Based on the findings in this study, managers should carefully think of their service strategies that lead to their customers’ favorable behavioral intentions.

Business-Oriented IT Tool Development For Service Delivery Process

The target of this thesis is to evaluate a bid, project and resource management IT tool for service delivery process via proof-of-concept (POC) project to assess, if the tested software is an appropriate tool for the Case Company’s business requirements. Literature suggests that IT projects implementation is still a grey area in scientific research. Also, IT projects have a notably high rate of failure, one significant reason for this being insufficient planning. To tackle this risk, the Case Company decided to perform a POC project, which involved a hands-on testing period of the assessed system. End users from the business side feel that current, highly tailored project management tool is inflexible, difficult to use, and sets unnecessary limitations for the business. Semi-structured interviews and a survey form are used to collect information about current business practices and business requirements related to the IT tool. For the POC project, a project group involving members from each of the Case Company’s four business divisions was established to perform the hands-on testing. Based on data acquired during the interviews and the hands-on testing period, a target state was defined and a gap analysis was carried out by comparing the features provided by the current tool and the tested tool to the target state, which are, together with the current state description, the most important result of the thesis.

Value added KPI service delivery with quality function deployment: Multiple case study in asset & real estate management

The aim of this study is to investigate value added service concept for an asset and real estate management case company. The initial purpose was to recognize the most value adding key performance indicators (KPIs) information delivered for its customers, real estate investors with value added service. The multiple case study strategy included two focus group interviews with five case interviews in total. Additionally, quality function deployment (QFD) was used in order to form up the service process. The study starts with introduction and methodology explaining the demand for the thesis study. The subsequent chapter presents the theoretical background on real estate management KPIs in four main points of views and quality function deployment from the service development point of view. The chapter also defines research gap for the case study. According to the case study interviews, the most favored KPIs to deliver for the clients are income maturity of lease agreements and leasing activity. These KPIs and quality characteristics are translated into the QFD. In total, the service QFD explains the service planning, process control, and action plan phases.

Customer orientation of sales personnel: Implications for service quality

Prior customer orientation research has concentrated mainly on studying the economical potential of customer orientation to companies. Service quality research instead has concentrated on emphasizing the evaluation of service quality from the customer’s perspective. This means that the service providers lack important information regarding customer orientation and service quality they would need for managerial purposes such as selecting and training employees. Therefore, there is an emerging need to study how customer orientation and service quality relate to company processes, policies and employees, and this study answers to those calls. The objective of this study was to examine what is the role of sales personnel’s’ customer orientation in quality of service delivery and what features support the development of customer orientation among sales personnel. Also the components customer orientation were studied extensively in order to understand how they relate to service quality. The empiric part of the study was conducted as a qualitative research by interviewing seven sales people from operative, tactical and strategic levels of the case corporation in order to get a broader view for customer orientation. The findings propose that both organizational factors and individual factors are affecting customer orientation construct inseparably. Organizational factors are bundled in this study under standards, support and systems, whereas individual factors are formed of employees’ personal attributes, motivation and self-perceived decision making authority. The findings suggest that in the service delivery process at an operative level, customer orientation appears largely in the employees’ individualistic characteristics. Their social and technical skills and motivation to serve customers are the most identifiable factors for customer orientation and consequently, quality service. However, organizational standards, support and systems are strongly dictating the frames the operative sales people operate in, having an influence on how the employees are experiencing their decision making authority and in the end, customer orientation. When looking at the service delivery process at tactical and strategic levels, customer orientation is affecting mainly in the organizational constructs through setting standards, support and systems. However, tactical and strategic level employees influence the operative level through individual customer orientation components as well. The findings indicate that their emotion and personal interaction skills are affecting the overall service delivery process mainly through supervisor support and motivation of the operative level employees. Based on this study it can be argued that an organization can operate as a facilitator and create certain frames for customer oriented sales behavior through standards, support and systems. However, as the impact of individual customer orientation factors on sales people’s service quality seems decisive, from an organizational perspective it puts pressures on the recruitment.

Intraorganizational Benefits of Customer Orientation in International Businesses - Empirical Evidence fromFinnish Service Exporters

This research concentrates to find out whether service employees' customer orientation has positive consequences relating to job attitudes in international context. A literature review is conducted in order to define the essential concepts and to see what kind of results researchers have found between customer orientation and job attitudes. The job attitudes researched in this research arejob satisfaction, role ambiguity, role conflict and commitment. This research differs from the previous customer orientation and job attitudes researchers with its international context. International services are thus discussed. Upon the previous literature and findings, four hypotheses are formed. They are tested with data from Finnish service exporters. Three hypotheses are supported, indicating that customer orientation has positiveeffect on job attitudes also in international context. Upon this research and literature review, future research recommendations are presented as well as managerial implications.

Asiakassuuntautunut toimintamalli konsultointialan yrityksessä

Yritys,joka pyrkii toimimaan asiakkaidensa tarpeiden ohjaamana, voi saavuttaa kilpailuetua suhteessa yrityksiin, jotka eivät tätä toimintatapaa ole sisäistäneet. Asiakassuuntautuneesti palveluita tuottava yritys voi tiedostettujen asiakastarpei-den ohjaamana kehittää omia sisäisiä toimintaprosessejaan. Tässä diplomityössä tarkastellaan asiakassuuntautuneisuuden merkitystä eräänä palveluyrityksen tulok-selliseen toimintaan vaikuttavana elementtinä. Kirjallisuustutkimuksen pohjalta hahmotetaan konsulttialan palveluorganisaation asiakassuuntautuneen toiminnan edellytyksiä ja merkitystä. Työssä tarkastellaan palveluyrityksen palveluita tuottavan organisaation sisäisen toimintadynamiikan osatekijöitä ja niiden vaikutuksia asiakassuuntautuneeseen palvelutuotantoon. Tutkimuksen perusteella määritellään konsulttialan yrityksen palveluorganisaati-olle asiakassuuntautuneisuuteen ohjaava viitekehys. Kehyksen avulla yrityksen organisaatiota voidaan ohjata tiedostamaan asiakassuuntautuneisuuden merkitys yrityksen kilpailutekijänä. Asiakassuuntautuneen palveluyrityksen organisaation tulee tiedostaa toimintansa vaikutukset asiakastyytyväisyyteen ja sitä kautta yri-tyksen kilpailukykyyn. Toteutunut asiakassuuntautuneisuus antaa mahdollisuuksia yrityksen toiminnan tehostamiselle, jatkuvuudelle sekä kannattavalle kasvulle.

Value added logistics in supply and demand chain. Smile. Part 2. eBusiness in a service business. Case: A maintenance and operations network in forest industry

VVALOSADE is a research project of professor Anita Lukka's VALORE research team in the Lappeenranta University of Technology. The VALOSADE includes the ELO technology program of Tekes. SMILE is one of four subprojects of the VALOSADE. The SMILE study focuses on the case of the company network that is composed of small and micro-sized mechanical maintenance service providers and forest industry as large-scale customers. The basic principle of the SMILE study is the communication and ebusiness in supply and demand networks. The aim of the study is to develop ebusiness strategy, ebusiness model and e-processes among the SME local service providers, and onthe other hand, between the local service provider network and the forest industry customers in a maintenance and operations service business. A literature review, interviews and benchmarking are used as research methods in this qualitative case study. The first SMILE report, 'Ebusiness between Global Company and Its Local SME Supplier Network', concentrated on creating background for the SMILE study by studying general trends of ebusiness in supply chains and networks of different industries. This second phase of the study concentrates on case network background, such as business relationships, information systems and business objectives; core processes in maintenance and operations service network; development needs in communication among the network participants; and ICT solutions to respond needs in changing environment. In the theory part of the report, different ebusiness models and frameworks are introduced. Those models and frameworks are compared to empirical case data. From that analysis of the empirical data, therecommendations for the development of the network information system are derived. In process industry such as the forest industry, it is crucial to achieve a high level of operational efficiency and reliability, which sets up great requirements for maintenance and operations. Therefore, partnerships or strategic alliances are needed between the network participants. In partnerships and alliances, deep communication is important, and therefore the information systems in the network also are critical. Communication, coordination and collaboration will increase in the case network in the future, because network resources must be optimised to improve competitive capability of the forest industry customers and theefficiency of their service providers. At present, ebusiness systems are not usual in this maintenance network. A network information system among the forest industry customers and their local service providers actually is the only genuinenetwork information system in this total network. However, the utilisation of that system has been quite insignificant. The current system does not add value enough either to the customers or to the local service providers. At present, thenetwork information system is the infomediary that share static information forthe network partners. The network information system should be the transaction intermediary, which integrates internal processes of the network companies; the network information system, which provides common standardised processes for thelocal service providers; and the infomediary, which share static and dynamic information on right time, on right partner, on right costs, on right format and on right quality. This study provides recommendations how to develop this system in the future to add value to the network companies. Ebusiness scenarios, vision, objectives, strategies, application architecture, ebusiness model, core processes and development strategy must be considered when the network information system will be developed in the next development step. The core processes in the case network are demand/capacity management, customer/supplier relationship management, service delivery management, knowledge management and cash flow management. Most benefits from ebusiness solutions come from the electrifying of operational level processes, such as service delivery management and cash flow management.

Marketing culture of Finnish research libraries : an analysis of marketing attitude, knowledge and behaviour

The aim of the present dissertation is to investigate the marketing culture of research libraries in Finland and to understand the awareness of the knowledge base of library management concerning modern marketing theories and practices. The study was based onthe notion that a leader in an organisation can have large impact on its culture. Therefore, it was considered important to learn about the market orientation that initiates at the top management and flows throughout the whole organisationthus resulting in a particular kind of library culture. The study attempts to examine the marketing culture of libraries by analysing the marketing attitudes, knowledge (underlying beliefs, values and assumptions), behaviour (market orientation), operational policies and activities, and their service performance (customer satisfaction). The research was based on the assumption that if the top management of libraries has market oriented behaviour, then their marketing attitudes, knowledge, operational policies and activities and service performance should also be in accordance. The dissertation attempts to connect all these theoretical threads of marketing culture. It investigates thirty three academic and special libraries in the south of Finland. The library director and three to ten customers from each library participated as respondents in this study. An integrated methodological approach of qualitative as well as quantitative methods was used to gain knowledge on the pertinent issues lying behind the marketing culture of research libraries. The analysis of the whole dissertation reveals that the concept of marketing has very varied status in the Finnish research libraries. Based on the entire findings, three kinds of marketing cultures were emerged: the strong- the high fliers; the medium- the brisk runners; and the weak- the slow walkers. The high fliers appeared to be modern marketing believers as their marketing approach was customer oriented and found to be closer to the emerging notions of contemporary relational marketing. The brisk runners were found to be traditional marketing advocates as their marketing approach is more `library centred¿than customer defined and thus is in line of `product orientation¿ i.e. traditional marketing. `Let the interested customers come to the library¿ was appeared to be the hallmark of the slow walkers. Application of conscious market orientation is not reflected in the library activities of the slow walkers. Instead their values, ideology and approach to serving the library customers is more in tuneof `usual service oriented Finnish way¿. The implication of the research is that it pays to be market oriented which results in higher customer satisfaction oflibraries. Moreover, it is emphasised that the traditional user based service philosophy of Finnish research libraries should not be abandoned but it needs to be further developed by building a relational based marketing system which will help the libraries to become more efficient and effective from the customers¿ viewpoint. The contribution of the dissertation lies in the framework showing the linkages between the critical components of the marketing culture of a library: antecedents, market orientation, facilitators and consequences. The dissertationdelineates the significant underlying dimensions of market-oriented behaviour of libraries which are namely customer philosophy, inter-functional coordination,strategic orientation, responsiveness, pricing orientation and competition orientation. The dissertation also showed the extent to which marketing attitudes, behaviour, knowledge were related and impact of market orientation on the serviceperformance of libraries. A strong positive association was found to exist between market orientation and marketing attitudes and knowledge. Moreover, it also shows that a higher market orientation is positively connected with the service performance of libraries, the ultimate result being higher customer satisfaction. The analysis shows that a genuine marketing culture represents a synthesis of certain marketing attitudes, knowledge and of selective practices. This finding is particularly significant in the sense that it manifests that marketing culture consists of a certain sets of beliefs and knowledge (which form a specific attitude towards marketing) and implementation of a certain set of activities that actually materialize the attitude of marketing into practice (market orientation) leading to superior service performance of libraries.