Inter-relationships between innovation and market orientation in SMEs

Purpose – This study aims to explore the nature of the interactions between two strategies, innovation and market orientation. By examining the components of these constructs the paper seeks to identify key components of market orientation that are antecedent factors of the innovation performance of the firm.

Design/methodology/approach – Correlation analysis was undertaken on data from a survey of 73 manufacturing firms in the Greater Western Sydney economic development zone in Australia. The data were supplemented by information obtained from the firm's annual reports.

Findings – Innovation was found to be positively correlated to market orientation (customer orientation, competitor orientation and inter-functional co-ordination) and both of these constructs were found to be positively correlated to firm performance and the degree of change in the firm's competitive environment.

Research limitations/implications – Possible limitations are: the low survey response rate; the nature of the sampled population; and the spread of industries involved, which could limit the generalisability of the results. The next steps will be to conduct deeper analysis into the factors that make up the subscales of the two constructs and to determine how market orientation or its associated activities interact with the innovation process.

Practical implications – In order to maximize a firm's financial performance, organizations should increase both their market orientation and their innovation activities as these factors operate synergistically.

Originality/value – This study is arguably the first to establish the finding that the degree of change in the competitive environment and the level of market orientation are linked, and the identification of the components of market orientation that are linked to firm innovation. These findings suggest that firm innovation and firm market orientation are strategic reactions to changes in the firm's competitive environment.

Organizational learning orientation - how can it foster alliance relationships?

Purpose – The purpose of this paper is to examine the importance of an organization's learning orientation in developing alliance relationships.

Design/methodology/approach – The paper is based on research conducted on organizations involved in alliances as well as practical evidence.

Findings – The paper finds that alliance managers need to focus on developing learning capabilities within their organizations to achieve superior alliance performance.

Practical implications – The paper has practical implications for managers involved in alliances as it shows the importance of an organization focusing on learning. With the relatively small number of alliance relationships that succeed, it is important that managers harness their organization's learning potential in the context of an alliance.

Originality/value – The paper is unique as it highlights the importance of an organization's learning orientation in an alliance context.

Using brand knowledge to predict beer brand preference and loyalty for samples of new frequent users in Perth and Beijing

This study tests a model of Brand Knowledge and Brand Equity of brands of beer on new and frequent users in two populations that differ in their stage of the beer product life cycle and culture. Using Multiple Logistic Regression (MLR) and Binomial Logistic Regression (BLR), models based on the respondents' Brand Knowledge are able to correctly identify Chinese respondents’ preferred brand of beer 56% of the time, while correctly identifying 77% of respondents in an Australian sample when three top brands are tested. The model could further identify 67% of those that stay or switch in both the Australian and the Chinese samples.

The influence of cultural values on brand loyalty

It is well documented that culture can influence consumer attitudes and behavior. While there have been numerous studies on how culture influences the four Ps of the marketing mix, few researchers have examined its effect on customer loyalty. More specifically, how consumers who identify more with certain cultural traits are likely to be more brand loyal. Using Hofstede’s cultural dimensions, this study empirically examines cultural effects on consumer-reported “proneness” to brand loyalty and finds that those who scored highly in individualism and uncertainty avoidance have greater affinity for exhibiting loyalty to a brand.

Exploring negativity bias in brand beliefs and stated brand switching propensity

Negativity bias has been well studied by psychologists but limited research has been conducted on it in a marketing context. Given previous research, this exploratory study aims to examine whether there are any negativity bias effects in brand beliefs and whether there is any influence on stated brand switching propensity amongst current users of a brand. The results suggest that there is a negativity bias evident in brand image data.