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.

Developing customer-focused public sector rewards schemes : evidence from the Botswana government's performance based reward system (PBRS)

Purpose – Governmental agencies are interested in improving the quality of their service delivery. One tool that has been used to manage their performance is performance based reward schemes (PBRS). The aim of this paper is to examine the degree to which a sample of these plans, used within the Botswana public sector, is customer-focused. Being more customer-focused should deliver improved public sector service quality.

Design/methodology/approach – This study carried out an evaluation of a sample of Botswana PBRS plans, using multidimensional content analysis undertaken by four expert “evaluators”, to identify the degree to which the PBRS were customer-focused.

Findings – Classifying PBRS plans as being customer-focused was difficult, as the plans had few objectives related to customer experiences or outcomes. Those that did had poorly defined performance objectives, their targets were not specific, or there was limited explicit role responsibility. Thus, PBRS plans seemed not to focus on improving customer outcomes.

Research limitations/implications – The PBRS evaluated do not appear to be customer-focused and, thus, would have limited ability to improve customer experiences (i.e. public sector quality). Further research is needed in other countries to see whether these results are generalisable, and whether service levels vary with more customer-focused PBRS plans.

Practical implications – The results suggest improvements that could be adopted by organisations seeking to make their PBRS schemes customer-focused.

Originality/value – Extensive research suggests that PBRS plans can be used to improve service quality. Most of the studies have focused on the employees' perspectives and have not looked at the degree of customer orientation within the plans.

The influence of market orientation on innovation strategies

Purpose – The purpose of this paper is to examine the effects of market orientation on exploratory and exploitative innovation, and the moderating effects of family ownership on these relationships. Design/methodology/approach – This study utilizes multi-group path analysis and confirmatory factor analysis in LISREL on data from 228 firms in the Australian service sector. Findings – This study establishes that both customer and competitor innovation are positively related to exploitative and exploratory innovation. However, customer orientation does not lead to significantly stronger effects on exploitative innovation than on exploratory innovation, and competitor orientation does not lead to significantly stronger effects on exploratory innovation than on exploitative innovation. In addition, the study found that the relationship between customer orientation and exploratory innovation was stronger for family firms, while the relationships between competitor orientation and both exploratory and exploitative innovation were stronger for non-family firms. Research limitations/implications – The cross-sectional design is one weakness of this study. In addition, as firms in the present study came from the service sector the generalizability of the findings to other sectors of the economy need to be determined. Practical implications – These findings of this study highlight the need for managers to build a strong market orientation in order to promote innovation, and consider the effects of ownership structure on innovation strategies. Originality/value – This study is the first to measure the relative influence of customer and competitor orientation on a firm’s use of exploitative and exploratory innovation strategies.

The relationship between market orientation, brand orientation and perceived benefits in the non-profit sector: a customer-perceived paradigm

The purpose of this paper is to examine the relationship between ‘market orientation’, ‘brand orientation’ and ‘perceived benefits’ in the non-profit sector from the perspective of the customers. Data were collected from a number of church organizations in Australia using a self-administered questionnaire. The tests for construct reliability, validity and research hypotheses were conducted using structural equation modelling. Findings reveal that ‘market orientation’ is significantly associated with both ‘perceived brand orientation’ and ‘perceived benefits’. An alternative model also reveals significant relationship between ‘brand orientation’ and ‘perceived benefits’ through ‘market orientation’ as the mediating variable. The study contributes to the body of literature and provides practical implications for non-profit managers and church leaders alike. An organization that endeavours to build a strong brand and deliver relevant benefits to its members should ensure that it has sufficient understanding of its members and utilizes the various resources of the organization to deliver superior values to its existing and prospective members.

The MORTN market orientation instrument - an empirical analysis

This paper focuses on Deshpande and Farley's (1998) MORTN market orientation instrument. Specifically, the paper investigates empirically the factor structure and reliability of the supposedly unidimensional instrument. When the MORTN instrument was tested utilising Australian organisations, a two-dimensional factor structure was found to fit the data more acceptably then the unidimensional structure proposed by Deshpande and Farley. These dimensions may be characterised as being Customer/Market Intelligence (Dimension One) and Customer Service (Dimension Two).

The role of brand orientation in explaining retail offer advantage

We provide a conceptualisation and operationalisation of brand orientation within the context of retailing. We then empirically test this operationalisation in terms of a retail offer advantage across the dimensions of merchandise, trading format, customer service and customer communication. Our results suggest that the degree to which a retailer values brands and its practices are oriented towards building brand capabilities provides a valuable theoretical framework to explain variations in retailers' advantage over their competitors.

Integration of market research and customer analytics : a study of CRM manager perspectives

The study examined key relationships between two overlapping customer knowledge systems, Market Research (MR) and Customer Analytics (CA). Their integration can provide valuable new marketing insights. However a survey of 286 US CRM and CA managers showed that many companies do not fully integrate MR and CA. Organisations with a Prospector strategic orientation were more likely to integrate the two and judge the CA system a success. Trust between the two functions enhanced knowledge integration. This in turn was shown to make a strong contribution to the value of CA and a modest indirect contribution to firm success.

The role of brand orientation in the higher education sector: a student-perceived paradigm

Purpose
The purpose of this paper is to examine the relationship between perceived brand orientation (PBO), satisfaction, loyalty, and post-enrolment communication behaviour in the Australian higher education sector.

Design/methodology/approach
Two hundred and fifty-eight questionnaires were completed by undergraduate students of a particular university in Australia. Structural equation modeling was employed in this study to examine the associations between the constructs.

Findings
This study provides empirical evidence that PBO has a positive and significant relationship with all dependent variables. The research reveals that students' perception of a university's brand orientation is significantly related to satisfaction, loyalty, and post-enrolment communication behaviour.

Research limitations/implications
The findings may guide the key decision makers in higher education institutions to understand the importance of brand orientation in their corporate strategy to enhance satisfaction, loyalty, and positive WOM, which can be used to differentiate themselves from other institutions in the highly competitive education market.

Originality/value
Past researchers have not looked into the dynamic relationships between PBO, satisfaction, loyalty, and post-enrolment communication behaviour, and hence research is to be called for in this area. The paper is the first to examine brand orientation from the perspective of the students and provide higher education institutions with recommendations to improve service quality through brand orientation.

Customer-focused CRM: a marketing challenge for organizations

The article explains that CRM is all about building longterm business relationships with customers. It is best described as the blending of internal business processes: sales, marketing and customer support with technology. Research indicates that poor project planning, weak and
incomplete business cases, cost and complexity of the technology, lack of.technological skills, lack of system integration and lack of senior management involvement in the CRM process are among the many factors that inhibit the successful adoption ofCRM in companies. The article presents a framework for customer centric CRM.

Orientation integration in detection and discrimination of contrast-modulated patterns

Orientation detection and discrimination thresholds were measured for Gabor ‘envelopes’ formed from contrast-modulation of luminance ‘carriers’. Consistent with previous research differences between carrier and envelope orientation had no effect on sensitivity to envelopes. Using plaid carriers in which the proportion of contrast modulation ‘carried’ by each plaid component was systematically manipulated, it was shown that this tolerance to carrier-envelope orientation difference reflects linear summation across orientation indicative of a single second-stage channel coding for contrast-defined structure. That contrast envelopes did not exhibit linear summation across spatial-frequency, nor across combinations of orientation and spatial-frequency differences, suggests that these second-order channels operate only within certain spatial scales. Using arrays of Gabor micropatterns as carriers in which the orientation distribution of the carriers was manipulated independently of the difference between envelope orientation and mean carrier orientation, it was further demonstrated that the locus of orientation integration must occur prior to envelope detection. In the context of two-stage models that incorporate a non-linearity between the stages, the pattern of results obtained is consistent with the operation of an orientation pooling process between first-stage and second-stage channels, analogous to having all filters of the first-stage feed into all filters of the second-stage within the same spatial-frequency band.

Adaption reveals a neural code for the visual location of orientation change

We apply an adaptation technique to explore the neural code for the visual location of textures defined by modulation of orientation over space. In showing that adaptation to textures modulated around one orientation shifts the perceived location of textures modulated around a different orientation, we demonstrate the existence of a neural code for the location of orientation change that generalises across orientation content. Using competitive adaptation, we characterise the neural processes underlying this code as single-opponent for orientation, that is with concentric excitatory/inhibitory receptive areas tuned to a single orientation.

The transformation of workplace culture

A theoretical perspective is developed for the critical examination of organisation culture. A structurationist approach is taken to link interpretive and radical structuralist paradigms in this examination. The perspective is applied to investigate a change program in the New Zealand division of a multi-national Bank. The focus is on the use of culture by management to control and change employee performance, in particular to shift the branch culture from a credit and process orientation toward a sales and customer focus. Findings of research conducted at the senior management and branch workplace levels are reported. The goal of the paper is to encourage critical reflection on the beliefs, values, and understandings of organisational life that are sometimes represented as universal, but which advance particular interests. The study’s findings illustrate a range of techniques used by management to transform a workplace culture, and the various reactions of employees to these efforts, manifest in forms of acceptance, appropriation, and resistance.

Customer repurchase intention: a general structural equation model

This paper develops a general service sector model of repurchase intention from the consumer theory literature. A key contribution of the structural equation model is the incorporation of customer perceptions of equity and value and customer brand preference into an integrated repurchase intention analysis. The model describes the extent to which customer repurchase intention is influenced by seven important factors – service quality, equity and value, customer satisfaction, past loyalty, expected switching cost and brand preference. The general model is applied to customers of comprehensive car insurance and personal superannuation services. The analysis finds that although perceived quality does not directly affect customer satisfaction, it does so indirectly via customer equity and value perceptions. The study also finds that past purchase loyalty is not directly related to customer satisfaction or current brand preference and that brand preference is an intervening factor between customer satisfaction and repurchase intention. The main factor influencing brand preference was perceived value with customer satisfaction and expected switching cost having less influence.