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Book part
Publication date: 3 July 2018

Neil A. Morgan and Douglas W. Vorhies

The marketing literature indicates that a firm’s organizational culture plays a critical role in determining its market orientation (MO) and thereby the firm’s ability to…

Abstract

Purpose

The marketing literature indicates that a firm’s organizational culture plays a critical role in determining its market orientation (MO) and thereby the firm’s ability to successfully adapt to its environment to achieve superior business performance. However, our understanding of the organizational culture of market-oriented firms and its relationship with business performance remains limited in a number of important ways. Drawing on the behavioral theory of the firm and the competing values theory perspective on organizational culture, our empirical study addresses important knowledge gaps concerning the relationship between firm MO culture, MO behaviors, innovation, customer satisfaction, and business performance.

Methodology/approach

We used a survey methodology with Clan Cultural Orientation, Adhocracy Cultural Orientation, Market Cultural Orientation, and Hierarchy Cultural Orientation Clan. Market Orientation Behaviors, Innovation, and Customer Satisfaction and CFROA t (Net Operating Income + Depreciation and AmortizationDisposal of Assets)/Total Assets.

Findings

The overall fit of the first Confirmatory Factor Analysis (CFA) containing the three MO behavior sub-scales, the four organizational culture scales, and the innovation and satisfaction performance measures was good with a χ 2 = 760.89, 524 df, p < 0.001; CFI = 0.916 and RMSEA = 0.055. The overall fit of the second CFA containing the business strategy, bureaucracy, and customer expectations control variables was also good with a χ 2 = 243.26, 156 df, p < 0.001; CFI = 0.937 and RMSEA = 0.061. We also subsequently ran a third CFA in which the MO behavior construct was modeled as a second-order factor comprising the three first-order sub-scales (generation of market intelligence, dissemination of market intelligence, and responsiveness to market intelligence) each of which in turn arose from the relevant survey indicants. This measurement model also fit well with the data with a χ 2 = 84.06, 63 df, p < 0.039; CFI = 0.955 and RMSEA = 0.047. Regressions using seemingly unrelated regressions (SUR) with control variables and with R 2 values ranging from 0.28 to 0.54.

Practical implications

MO culture has an important direct effect on firms’ financial performance as well as an indirect effect via MO behaviors and innovations. Importantly, our findings suggest that MO culture facilitates value-creating behaviors above and beyond those identified in the marketing literature as MO behaviors. In contrast to a series of studies by Deshpandé and colleagues (1993, 1999, 2000, 2004), our empirical results suggest the value of the internally oriented Clan and to a lesser degree Hierarchy cultural orientations as well as the more externally oriented Adhocracy and Market cultural orientations. The benchmark ideal MO culture profile we identify is consistent with organization theory conceptualizations of strong balanced organizational cultures in which each of the four competing values orientations is simultaneously exhibited to a significant degree (e.g., Cameron & Freeman, 1991). Our findings indicate that the organizational culture domain of MO appears to be at least as important (if not more so) in explaining firm performance and suggest that researchers need to re-visit the conceptualization, and perhaps more importantly the operationalization, of MO as a central construct in strategic marketing thought.

Originality/value

In building an MO culture, an important first step is to assess the firm’s existing organizational culture profile (e.g., Goodman, Zammuto, & Gifford, 2001). Organization theory researchers have developed competing values theory-based organizational culture assessment tools that can provide managers with an easily accessible mechanism for accomplishing this (Cameron & Quinn, 1999). The profile of the firm’s existing culture and the profile of the ideal culture for MO from our study can then be plotted on a “spider’s web” graphical representation (e.g., Hooijberg & Petrock, 1993). This aids the comparison of the firm’s existing cultural profile with the ideal MO profile, enabling managers to easily diagnose the areas, direction, and magnitude MO culture profile “gaps” in their firm (Cameron, 1997). Specific gap-closing plans and tactics for gaps on each of the four cultural orientations can then be identified as part of the development of a change management program designed to create an MO culture profile (e.g., Chang & Wiebe, 1996). Cameron and Quinn’s (1999) workbook provides managers with an excellent operational resource for planning and undertaking such gap-closing organizational culture change initiatives.

Details

Innovation and Strategy
Type: Book
ISBN: 978-1-78754-828-2

Keywords

Book part
Publication date: 1 January 2005

Richard Reeves-Ellington

Conceptualizing trust alone or as the starting point for understanding both trust and distrust is insufficient. Therefore, this chapter focuses on the construction of phenotypic…

Abstract

Conceptualizing trust alone or as the starting point for understanding both trust and distrust is insufficient. Therefore, this chapter focuses on the construction of phenotypic trustscapes and distrustscapes that permit an abstract exploration of the concepts of trust and distrust using societal and dyadic relationships and perceptions of the individual as the units of analysis. For theoretical understanding of trust and distrust, it uses social and evolutionary biologic multi-level theory. This chapter builds on the existing trust literature in three ways: (1) by triangulating on trust and distrust through the use of a number of research methodologies; (2) by placing trust and distrust in value orientation theory and models; and (3) by extricating trust and distrust from reciprocity constructs, and placing them into separate phenotypes: trustscapes and distrustscapes. These efforts show that both trust and distrust are naturally occurring phenomena, with one or the other predominant in specific contexts. The chapter includes scenarios in Japan, Bulgaria, and Indonesia to demonstrate how micro- and macro-level examples of trustscapes and distrustscapes function.

Details

Multi-level Issues in Organizational Behavior and Processes
Type: Book
ISBN: 978-1-84950-269-6

Book part
Publication date: 10 April 2006

Janet L. Sutton, Linda G. Pierce, C.Shawn Burke and Eduardo Salas

Barriers to cultural adaptability include perceptual, interpretive, and evaluative biases. Differences in culturally based perceptual patterns can be problematic given that…

Abstract

Barriers to cultural adaptability include perceptual, interpretive, and evaluative biases. Differences in culturally based perceptual patterns can be problematic given that interpretation and evaluation of behavior is a critical element of teamwork. Altogether, perceptual patterns are “selective, learned, culturally determined, consistent, and inaccurate” (Adler, 1986, p. 54). Selective exposure, selective attention, and selective retention are all hallmarks of the process of perception. Bagby (1970) demonstrated how perceptual patterns become selective even in childhood. He had American and Mexican children watch a bullfight and a baseball game simultaneously using a tachistoscope. When asked what they had seen, the American children claimed to have watched a baseball game, and the Mexican children claimed to have watched a bullfight. Neither group was aware that they had been presented two stimuli simultaneously. Both groups of children selected stimuli that had meaning for their culture and ignored or forgot the stimuli that had no meaning for them. The children's culture predisposed them to notice some things and not others. Perceptual selectivity is a key barrier to cultural adaptability and influences both interpretation and evaluation.

Details

Understanding Adaptability: A Prerequisite for Effective Performance within Complex Environments
Type: Book
ISBN: 978-1-84950-371-6

Book part
Publication date: 18 August 2006

Kerstin A. Aumann and Cheri Ostroff

In recent years, theory and research have been increasingly devoted to understanding organizational behavior in cross-cultural and global contexts, with particular attention being…

Abstract

In recent years, theory and research have been increasingly devoted to understanding organizational behavior in cross-cultural and global contexts, with particular attention being paid to the appropriateness of various human resources management (HRM) practices because practices that may be effective within one cultural context may not be effective in other cultural contexts. This chapter argues that a multi-level perspective is needed to explain the interplay between HRM practices and employee responses across cultural contexts. Specifically, the multi-level framework developed in this chapter elucidates the importance of fit between HRM practices, individual values, organizational values, and societal values. Societal values play a key role in the adoption of HRM practices, and the effectiveness of these HRM practices will depend largely on “fit” or alignment with the values of the societal culture in which the organization is operating. HRM practices also shape the collective responses of employees through organizational climate at the organizational level and through psychological climate at the individual level. For positive employee attitudes and responses to emerge, the climate created by the HRM practices must be aligned with societal and individual values. Building on these notions, the strength of the societal culture in which the organization is operating serves as a mechanism that links relationships between climate, value fit, and attitudes across levels of analysis. The chapter concludes with some recommendations for future research and implications for practice.

Details

Multi-Level Issues in Social Systems
Type: Book
ISBN: 978-1-84950-432-4

Book part
Publication date: 14 August 2020

Anthony Abiodun Eniola

The examination researches the impacts of cultural identity on entrepreneurial performance in the southern Nigeria. The examination connected a cross-sectional overview approach…

Abstract

The examination researches the impacts of cultural identity on entrepreneurial performance in the southern Nigeria. The examination connected a cross-sectional overview approach in choosing the small- and medium-scale enterprises (SMEs) in south-south district who reacted to an organized poll. The Spearman’s rank correlation coefficient and structural equation modeling (PLS-SEM 3.2) were utilized in analyzing. The examinations show that there is an association between family structure, communal spirit and entrepreneurial performance. Nevertheless, there is a weak connection among individualism orientation, profitability and survival. The examination reasoned that SMEs could raise performance by embracing significant antecedents of cultural identity from successful cultural groups.

Details

Entrepreneurship as Empowerment: Knowledge Spillovers and Entrepreneurial Ecosystems
Type: Book
ISBN: 978-1-83982-551-4

Keywords

Book part
Publication date: 6 May 2004

Shreya Sarkar-Barney

The focus of global training has primarily been on preparing employees to work effectively in other cultures, such as in expatriate training, acculturation training, and training…

Abstract

The focus of global training has primarily been on preparing employees to work effectively in other cultures, such as in expatriate training, acculturation training, and training for technology transfer. One issue that has been ignored is the implication of using training systems that are developed in a specific cultural context and then deployed globally. This chapter proposes a framework to show the influence of culture on one aspect of training effectiveness, the transfer of newly learned skills to the job. Specific relationships are proposed, using Baldwin and Ford’s (1988) transfer of training framework as a guide, and also by synthesizing findings from areas such as cross-cultural psychology, human resource management, education, and technology management.

Details

Cultural Ergonomics
Type: Book
ISBN: 978-0-76231-049-4

Book part
Publication date: 12 July 2011

Luis L. Martins and Marieke C. Schilpzand

Global virtual teams (GVTs) – composed of members in two or more countries who work together primarily using information and communication technologies – are increasingly…

Abstract

Global virtual teams (GVTs) – composed of members in two or more countries who work together primarily using information and communication technologies – are increasingly prevalent in organizations today. There has been a burgeoning of research on this relatively new organizational unit, spanning various academic disciplines. In this chapter, we review and discuss the major developments in this area of research. Based on our review, we identify areas in need of future research, suggest research directions that have the potential to enhance theory development, and provide practical guidelines on managing and working in GVTs.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-0-85724-554-0

Book part
Publication date: 30 September 2020

Fabrizio Maimone

This conceptual chapter, based on literature review, aims to elaborate an integrative approach to the study of cultural differences/convergence within and across the borders of…

Abstract

This conceptual chapter, based on literature review, aims to elaborate an integrative approach to the study of cultural differences/convergence within and across the borders of Eastern European countries, in order to conciliate the two theoretical perspectives prevailing in the debate on cultural diversity management: the emic and the etic theoretical stances.

This chapter tries to propose a ‘third way’ to cultural analysis that includes the two perspectives, within a wider and complex multiparadigmatic and pluralistic framework, with a specific focus on Eastern European cultures.

Eastern European countries represent a sort of ideal construction that includes several countries, characterized by different trajectories and heritages: Catholic versus Orthodox religions, Slavic versus non-Slavic identities, Capitalistic versus Former Soviet Union values, etc. In spite of the renovated interest towards the regional area of Eastern Europe, empirical data show that there are significant differences in the distribution of cultural values, among national clusters. On the other hand, it is very difficult to say that Eastern European countries should be considered separate sociocultural entities, without any point of contact among other.

The main assumption of this chapter is that to better understand sociocultural dynamics within and across Eastern European countries, it is necessary to go beyond cultural mapping, in search of a more complex theoretical and methodological approach.

This approach may help to conciliate the apparent paradoxes emerging from the comparison of data related to Eastern European national clusters, providing a more complex and deep view of cultural phenomena, within and outside organizational and national boundaries.

Details

Understanding National Culture and Ethics in Organizations
Type: Book
ISBN: 978-1-83867-022-1

Keywords

Book part
Publication date: 27 March 2007

Lichia Yiu and Raymond Saner

There has been an upsurge of publications based on Hermann Witkin's ground-breaking work on cognitive styles and human perception differentiated into field-dependent and…

Abstract

There has been an upsurge of publications based on Hermann Witkin's ground-breaking work on cognitive styles and human perception differentiated into field-dependent and field-independent styles (Winerman, 2006; Nisbett & Miyamoto, 2005; Nisbett, 2003). This paper builds on current and past research of Witkin (1969) and applies his concepts to the study of global managers and OD practitioners. The goal is to describe core aspects of culture-related challenges, which global mangers and OD practitioners have to overcome, and ends with proposing future research on the possibilities of training global managers and OD practitioners in order to develop integrated perceptual-cognitive ability (IPCA). Such an IPCA competence would allow them to master both field dependent and field-independent perceptual-cognitive skills.

Details

Research in Organizational Change and Development
Type: Book
ISBN: 978-1-84950-425-6

Abstract

Details

The Emerald Guide to Talcott Parsons
Type: Book
ISBN: 978-1-83982-654-2

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