Academic journal article International Management Review

An Integrative Model of Market Orientation Constructs in Consumer Goods Industry: An Empirical Evidence

Academic journal article International Management Review

An Integrative Model of Market Orientation Constructs in Consumer Goods Industry: An Empirical Evidence

Article excerpt

[Abstract] Literature review had shown separate focus on measuring marketing concept adoption and implementation (market orientation). Additionally, it is clear from the intensive work on market orientation that there is lack of studies in targeted least developed countries. Therefore, the main purpose of this study is to build on the lack of empirical evidence by developing an integrative model to examine the linkage between marketing concept adoption and market orientation constructs in Yemeni's industry. Multiple-informant data were collected using face-to-face questionnaire method and strategic business unit (SBU) was the unit of analysis within Yemeni's consumer goods industry. The proposed model was examined using correlation analysis, path analysis and suggested fit indices using AMOS program. All of the variables had shown to be positively and significantly correlated. The integrative model achieved high fit indices and the cultural dimensions are found to have a partial mediation role of the relationship between marketing concept adoption and behavioral dimensions of market orientation.

[Keywords] marketing concept; market orientation; intelligence processing; least developed countries

Introduction

Nowadays, customer focused, market driven and flexibility become critical elements for businesses to survive in highly competitive markets. These elements must give the organization the ability to deliver superior value to customers whose preferences and expectations change continuously as they are exposed to new product offerings and communications about them (Webster, 1994). The marketing concept originated in the western developed countries after the industrial revolution (Zebal, 2003). It is now strongly established among marketing scholars and practitioners as perhaps the optimum marketing management philosophy (Turner and Spencer, 1997).

Despite its growing interest, there have been insufficient discussions on issues concerning the successful implementation of the marketing concept. Practitioners are simply expected to accept the concept as the core of marketing (Turner & Spencer, 1997). Meldrum (1996) pointed out the concern about marketing that the inability of organizations to put into practice the policies devised in its name. As a result, marketing implementation becomes useful researchable and relevant research area for the marketing discipline (Bonoma, 1984).

A new perspective for viewing the marketing concept has emerged within the marketing literature to clarify the implementation issue (Turner & Spencer, 1997). Utilizing the marketing concept becomes an important factor in order to create more effective organization structure and increase profitability. The term "market orientation" was used by the literature to mean the implementation of the marketing concept (e.g. Kohli & Jaworski, 1990).

Market orientation models have only been developed and tested for developed countries (Zebal, 2003). Therefore, a lack of empirical research exists in least developed countries. In order to begin to address this research gap, this study was conducted in the Republic of Yemen, particularly; consumer goods industry was targeted to examine the level of marketing concept adoption and market orientation. The sample reflects diverse set of companies, departments and positions. Therefore, is well suited for obtaining rich set of ideas and insights.

Yemen: An Overview

The Republic of Yemen is an Asian country located in the southern part of the Arabian Peninsula. Yemen is categorized as one of the Least Developed Countries (LDCs) in the world (MPD, 2000). Yemeni's industrial sector constitutes 40.9 percent of gross domestic product (GDP) in 2007. Together with services, construction and commerce, industry accounts for less than 25 percent of the labor force. The largest contributor to the manufacturing sector's output is oil refining, which generates roughly 40 percent of the total revenue. …

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