Academic journal article Business: Theory and Practice

Model of Market Orientation of High-Tech Firms in Germany: Validation Study

Academic journal article Business: Theory and Practice

Model of Market Orientation of High-Tech Firms in Germany: Validation Study

Article excerpt

Introduction

Measuring market orientation of businesses has been a popular research topic in marketing worldwide. In the last three decades, several measurement tools of market orientation have been created, however they differed in their properties. Frequent criticism of the previous models has been a common reason for designing a new model. Some models either showed weak compliance of the model with data, others failed in the area of content validity and in some cases psychometric data as such were unavailable. This study verified a MMOS instrument originally created in the Czech Republic and focusing mainly on customers and competition, which are considered the most important stakeholders in the market by a recognized marketer Kotler et al. (2013). This is a shortened version of the instrument, derived from the following known models by Kohli et al. (1993), Narver and Slater (1990) and Mohr et al. (2014). Kohli and Jaworski (1990) define market orientation as the process of obtaining market information, its dissemination within the company and strategy implementation in response to the information obtained. The author of this study defines market orientation as a process of customer and competitor intelligence generation, intelligence dissemination and integration and responsiveness to market intelligence. The shortened version of the instrument (MMOS) has been designed for practical reasons at the request of managers with company experience. The modified version also includes an important item "integration" of market information within company which is based on the ideas of Mohr et al. (2014). Also Deshpande and Farley (1998) or Farrell and Oczkowski (1997) recommended using shorter versions for measuring market orientation. The fact that this work is another validation study of the MMOS scale on German data served as the motivation to complete this work. The scale consists of four dimensions: customer intelligence generation (CUIG), competitor intelligence generation (COIG), intelligence dissemination & integration (IDI) and responsiveness to market intelligence (RMI).

1. The concept of market orientation and its measurement

Farrell (2002) focuses on the study of market orientation after 1989. The first instrument for measuring market orientation was the MKTOR scale developed by Narver and Slater (1990) and containing three components (customer orientation, competitor orientation, interfunctional coordination) and two criteria (profit emphasis, long-range focus). The authors Kohli, Jaworski and Kumar (1993) introduced a measurement tool known as MARKOR--a one-dimensional concept with three components (intelligence generation, intelligence dissemination and responsiveness). The original 32 items in the methodology proposed by Kohli et al. (1993) were subsequently reduced to 20 items by Kohli et al. (1993) themselves. Both measurements were criticized for several reasons. Such criticism was delivered for example by Farrell and Oczkowski (1997), who pointed out the low psychometric properties of the model. Deng and Dart (1994) researched available literature in order to improve the existing measurement of market orientation and concluded that market orientation consists of the following sub-components: customer orientation, competitor orientation, inter-functional coordination and profit orientation. On this basis, they developed a scale of 44 items obtained from the available professional literature and previous studies. It was subsequently reduced, based on a pre-test, to 33 items. This scale was also criticized for numerous reasons. In the professional literature, there is a general consensus that profit orientation is a consequence, not a component of market orientation. Moreover, this instrument is primarily derived from the MKTOR scale with the addition of many other items. Consequently, the use of its 33 items is rather lengthy and would take up too much of the respondents' time. Also Pelham (1997) proposed a measurement instrument based on Narver and Slater (1990) and Kohli and Jaworski (1990). …

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