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The effects of market orientation on effectiveness and efficiency: the case of automotive distribution channels in Finland and Poland

Tung‐Zong Chang (Associate Professor, College of Business Administration, Metropolitan State College, Denver, USA)
Rajiv Mehta (Associate Professor, College of Business Administration, Loyola University, New Orleans, USA)
Su‐Jane Chen (Associate Professor, School of Business, University of Wisconsin‐Eau Claire, USA)
Pia Polsa (Assistant Professor, Swedish School of Economics and Business Administration, Helsinki, Finland)
Jolanta Mazur (Professor, Warsaw School of Economics, Warsaw, Poland)

Journal of Services Marketing

ISSN: 0887-6045

Article publication date: 1 August 1999

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Abstract

Explores the effect of market orientation on operating effectiveness and cost efficiency using data drawn from automotive distribution channels in Finland and Poland. The results indicate that market orientation is positively associated with measures of effectiveness such as service quality and overall customer service level. Market orientation also has a positive influence on measures of cost efficiency, such as productivity and sales per employee. In addition, profitability measures were highly associated with operating effectiveness and cost efficiency. Additional analysis suggests that market orientation has a greater effect on operating effectiveness, such as service quality, in Poland, a less‐developed country, than in Finland, a more‐developed country. Based on the findings, important managerial and research implications are proferred.

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Citation

Chang, T., Mehta, R., Chen, S., Polsa, P. and Mazur, J. (1999), "The effects of market orientation on effectiveness and efficiency: the case of automotive distribution channels in Finland and Poland", Journal of Services Marketing, Vol. 13 No. 4/5, pp. 407-418. https://doi.org/10.1108/08876049910282709

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MCB UP Ltd

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