Market orientation and capacity for change in higher education performance in Indonesia

Abstract

Purpose

Changes are inevitable and organisations should develop their organisational capacity for change (OCC) to survive. This paper aims to test the effect of market orientation on OCC (learning, process and context), as well as the impact of OCC on organisational performance.

Design/methodology/approach

This research used a survey of 314 heads of study programmes in Indonesia’s highest-ranked universities to test the proposed hypotheses.

Findings

The results of this research demonstrate that OCC is determined by customer orientation and cross-functional coordination (market orientation), while competitor orientation influences the learning dimension of OCC. Moreover, only the context dimension of OCC positively influences organisational performance in addition to serving as a mediator between market orientation (customer orientation and cross-functional coordination) and organisational performance, whereas competitor orientation positively influences organisational performance.

Originality/value

This paper empirically tested the three dimensions of OCC (learning, process and context) that had previously been discussed only conceptually. Furthermore, the organisation should be market-oriented to possess the capacity for change. Finally, the paper proposes and demonstrates that organisational context (culture) plays a significant role in OCC in developing organisational performance.

Citation

Sukoco, B.M., Choirunnisa, Z., Mudzakkir, M.F., Nasution, R.A., Susanto, E. and Usman, I. (2022), "Market orientation and capacity for change in higher education performance in Indonesia", Journal of Asia Business Studies, Vol. 16 No. 1, pp. 80-100. https://doi.org/10.1108/JABS-01-2020-0021