THE EFFECT OF MARKET ORIENTATION ON BUSINESS PERFORMANCE OF SERBIAN ORGANIC PRODUCERS
DOI:
https://doi.org/10.5937/ekoPolj1704651VKeywords:
market orientation, business performance, producers, organic food, Serbia.Abstract
In the current conditions, market orientation plays a vital role in the generation of superior performances and the achievement of a competitive advantage. Even though the concept of market orientation was evaluated in various studies, there are very few such studies in the context of the Serbian economy, and in the organic food industry there are almost none. Thus the basic aim of this paper is to examine the degree of practicing market orientation in the businesses of Serbian organic food producers, and to identify a connection between their market orientation and business performance. In the paper we applied a cultural perspective in the measuring of market orientation by using the MKTOR scale as a basis. On a sample of 42 surveyed producers, it was confrmed that the elements of market orientation directly and positively affect sales growth, market share and proftability, as well as overall business performance.
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References
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34. Narver, J. C. and Slater, S. F. (1990). The Effect of a Market Orientation on Business Proftability, Journal of Marketing, Vol. 54, No. 4, pp. 20-35.
35. Ngo, L. V. and OCass, A. (2012). Performance implications of market orientation, marketing resources, and marketing capabilities, Journal of Marketing Management, Vol. 28, No. 1-2, pp. 173-187.
36. Olavarrieta, S. and Friedmann, R. (2008). Market orientation, knowledge-related resources and frm performance, Journal of Business Research, Vol. 61, No. 6, pp. 623-630.
37. Pallant, J. (2011). SPSS Survival Manual (4th ed.), Allen & Unwin, Crows Nest, New South Wales, Australia.
38. Panigyrakis, G. G. and Theodoridis, P. K. (2007). Market orientation and performance: An empirical investigation in the retail industry in Greece, Journal of Retailing and Consumer Services, Vol. 14, No. 2, pp. 137-149.
39. Pelham, A. M. (1997a). Mediating Influences on the Relationsmp between Market Orientation and Proftability in Small Industrial Firms, Journal of Marketing Theory and Practice, Vol. 5, No. 3, pp. 55-76.
40. Pelham, A. M. (1997b). Market orientation and performance: the moderating effects of product and customer differentiation, Journal of Business & Industrial Marketing, Vol. 12, No. 5, pp. 276-296.
41. Pelham, A. M. (1999). Influence of Environment, Strategy, and Market Orientation on Performance in Small Manufacturing Firms, Journal of Business Research, Vol. 45, No. 1, pp. 33-46.
42. Pelham, A. M. and Wilson, D. T. (1996). A longitudinal study of the impact of market structure, frm structure, strategy, and market orientation culture on dimensions of small-frm performance, Journal of the Academy of Marketing Science, Vol. 24, No. 1, pp. 27-43.
43. Petz, B. (2004). Osnovne statističke metode za nematematičare, Naklada Slap, Zagreb, Hrvatska.
44. Protcko, E. and Dornberger, U. (2014). The impact of market orientation on business performance – the case of Tatarstan knowledge-intensive companies (Russia), Problems and Perspectives in Management, Vol. 12, No. 4, pp. 225-231.
45. Raju, P. S., Lonial, S. C. and Crum, M. D. (2011). Market orientation in the context of SMEs: A conceptual framework, Journal of Business Research, Vol. 64, No. 12, pp. 1320-1326.
46. Raju, P. S., Lonial, S. C. and Gupta, Y. P. (1995). Market orientation and performance in the hospital industry, Journal of Health Care Marketing, Vol. 15, No. 4, pp. 34-41.
47. Rapp, A., Beitelspacher, L. S., Schillewaert, N. and Baker, T. L. (2012). The differing effects of technology on inside vs. outside sales forces to facilitate enhanced customer orientation and interfunctional coordination, Journal of Business Research, Vol. 65, No. 7, pp. 929-936.
48. Rodriguez Cano, C., Carrillat, F. A. and Jaramillo, F. (2004). A meta-analysis of the relationship between market orientation and business performance: evidence from fve continents, International Journal of Research in Marketing, Vol. 21, No. 2, pp. 179-200.
49. Ruekert, R. W. (1992). Developing a market orientation: An organizational strategy perspective, International Journal of Research in Marketing, Vol. 9, No. 3, pp. 225-245.
50. Salavou, H. (2002). Proftability in market-oriented SMEs: does product innovation matter? European Journal of Innovation Management, Vol. 5, No. 3, pp. 164-171.
51. Shoham, A., Rose, G. M. and Kropp, F. (2005). Market orientation and performance: a meta-analysis, Marketing Intelligence & Planning, Vol. 23, No. 5, pp. 435-454.
52. Slater, S. F. and Narver, J. C. (1994). Does Competitive Environment Moderate the Market Orientation-Performance Relationship?, Journal of Marketing, Vol. 58, No. 1, 46-55.
53. Stanković, L., Đukić, S. and Popović, A. (2013): Tržišna orijentacija preduzeća u Srbiji kao determinanta njihove inovativnosti i konkurentnosti. In N. Janićijević & S. Lovreta (Eds.), Konkurentnost preduzeća u Srbiji, pp. 147-166, CID, Beograd, Republika Srbija.
54. Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011, Journal of Business Research, Vol. 69, No. 12, pp. 5611-5619.
55. Willer, H. and Lernoud, J. (2014). The World of Organic Agriculture. Statistics and Emerging Trends 2014, Research Institute of Organic Agriculture (FiBL), Frick, and International Federation of Organic Agriculture Movements (IFOAM), Bonn, Germany.
56. Willer, H. and Lernoud, J. (2017). The World of Organic Agriculture. Statistics and Emerging Trends 2017, Research Institute of Organic Agriculture (FiBL), Frick, and International Federation of Organic Agriculture Movements (IFOAM), Bonn, Germany
2. Appiah-Adu, K. (1998a). Market orientation and performance: empirical tests in a transition economy, Journal of Strategic Marketing, Vol. 6, No. 1, pp. 25-45.
3. Appiah-Adu, K. (1998b). Market Orientation and Performance: Do the Findings Established in Large Firms Hold in the Small Business Sector? Journal of Euromarketing, Vol. 6, No. 3, pp. 1-26.
4. Appiah-Adu, K. and Singh, S. (1998). Customer orientation and performance: a study of SMEs, Management Decision, Vol 36, No. 6, pp. 385-394.
5. Caruana, A., Pitt, L. and Ewing, M. (2003). The market orientation-performance link: the role of service reliability, The Service Industries Journal, Vol. 23 No. 4, pp. 25-41.
6. Chen-Ho Chao, M. and Spillan, J. E. (2010). The journey from market orientation to frm performance, Management Research Review, Vol. 33, No. 5, pp. 472-483.
7. Dawes, J. (2000). Market Orientation and Company Proftability: Further Evidence Incorporating Longitudinal Data, Australian Journal of Management, Vol. 25, No. 2.
8. Deng, S. and Dart, J. (1994). Measuring market orientation: A multi-factor, multiitem approach, Journal of Marketing Management, Vol.10, No. 8, pp. 725-742.
9. Deshpande, R., Farley, J. U. and Webster, F. E. (1993). Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis, Journal of Marketing, Vol. 57 No. 1, pp. 23-37.
10. Ellis, P. D. (2006). Market Orientation and Performance: A Meta-Analysis and Cross-National Comparisons, Journal of Management Studies, Vol. 43, No. 5, pp. 1089-1107.
11. Gladson Nwokah, N. (2008). Strategic market orientation and business performance, European Journal of Marketing, Vol. 42, No. 3/4, pp. 279-286.
12. Goldman, A. and Grinstein, A. (2010). Stages in the development of market orientation publication activity, European Journal of Marketing, Vol. 44, No. (9/10), pp. 1384-1409.
13. Gray, B., Matear, S., Boshoff, C. and Matheson, P. (1998). Developing a better measure of market orientation, European Journal of Marketing, Vol. 32, No. 9/10, pp. 884-903.
14. Greenley, G. E. and Foxall, G. R. (1997). Multiple Stakeholder Orientation in UK Companies and the Implications for Company Performance, Journal of Management Studies, Vol. 34, No. 2, pp. 259-284.
15. Greenley, G. E. and Foxall, G. R. (1998). External moderation of associations among stakeholder orientations and company performance, International Journal of Research in Marketing, Vol. 15, No. 1, pp. 51-69.
16. Gruber-Muecke, T. and Hofer, K. M. (2015). Market orientation, entrepreneurial orientation and performance in emerging markets, International Journal of Emerging Markets, Vol. 10, No. 3, pp. 560-571.
17. Guo, C. (2002). Market orientation and business performance, European Journal of Marketing, Vol. 36, No. 9/10, pp. 1154-1163.
18. Haugland, S. A., Myrtveit, I. and Nygaard, A. (2007). Market orientation and performance in the service industry: A data envelopment analysis, Journal of Business Research, Vol. 60, No. 11, pp. 1191-1197.
19. Hooley, G., Cox, T., Fahy, J., Shipley, D., Beracs, J., Fonfara, K. and Snoj, B. (2000). Market Orientation in the Transition Economies of Central Europe, Journal of Business Research, Vol. 50, No. 3, pp. 273-285.
20. Jaworski, B. J. and Kohli, A. K. (1993). Market Orientation: Antecedents and Consequences, Journal of Marketing, Vol. 57, No. 3, pp. 53-70.
21. Johnson, A. J., Dibrell, C. C. and Hansen, E. (2009). Market Orientation, innovativeness, and Perfomance of Food Companies, Journal of Agribusiness, Vol. 27, No. 1/2, pp. 85-106.
22. Julian, C. C., Mohamad, O., Ahmed, Z. U. and Sefnedi, S. (2014). The Market Orientation-Performance Relationship: The Empirical Link in Export Ventures, Thunderbird International Business Review, Vol. 56, No. 1, pp. 97-110.
23. Kirca, A. H., Jayachandran, S. and Bearden, W. O. (2005). Market Orientation: A Meta-Analytic Review and Assessment of Its Antecedents and Impact on Performance, Journal of Marketing, Vol. 69, No. 2, pp. 24-41.
24. Kohli, A. K. and Jaworski, B. J. (1990). Market Orientation: The Construct, Research Propositions, and Managerial Implications, Journal of Marketing, Vol. 54, No. 2, pp. 1-18.
25. Kohli, A. K., Jaworski, B. J. and Kumar, A. (1993). MARKOR: A Measure of Market Orientation, Journal of Marketing Research, Vol. 30, No. 4, pp. 467-477.
26. Lafferty, B. A., Tomas M. and Hult, G. (2001). A synthesis of contemporary market orientation perspectives, European Journal of Marketing, Vol. 35, No. 1/2, pp. 92-109.
27. Levitt, T. (2004). Marketing myopia. 1960, Harvard Business Review, Vol. 82, No. 7-8, pp. 138-149.
28. Li, Q., Zhou, J., Mo, L., Yang, J. and An, X. (2009). Analysis on the Impact of Cooperation Between Independent Power Producer and the Grid Company in Day-Ahead Electricity Market, Proceedings - Power and Energy Engineering Conference, IEEE, Wuhan, China, Vol.1, pp.1-5.
29. Liao, S.-H., Chang, W.-J., Wu, C.-C. and Katrichis, J. M. (2011). A survey of market orientation research (1995–2008), Industrial Marketing Management, Vol. 40, No. 2, pp. 301-310.
30. Maydeu Olivares, A. and Lado, N. (2003). Market orientation and business economic performance, International Journal of Service Industry Management, Vol. 14, No. 3, pp. 284-309.
31. Milisavljavić, M. (2005). Tržišna orijentacija i poslovni uspeh preduzeća, Megatrend Revija, Vol. 2, No. 2, pp. 151-165, Univerzitet "Džon Nezbit", Beograd, Republika Srbija.
32. Mitchell, R. W., Wooliscroft, B. and Higham, J. (2010). Sustainable Market Orientation: A New Approach to Managing Marketing Strategy, Journal of Macromarketing, Vol. 30, No. 2, pp. 160-170.
33. Morgan, N. A., Vorhies, D. W. and Mason, C. H. (2009). Market orientation, marketing capabilities, and frm performance, Strategic Management Journal, Vol. 30, No. 8, pp. 909-920.
34. Narver, J. C. and Slater, S. F. (1990). The Effect of a Market Orientation on Business Proftability, Journal of Marketing, Vol. 54, No. 4, pp. 20-35.
35. Ngo, L. V. and OCass, A. (2012). Performance implications of market orientation, marketing resources, and marketing capabilities, Journal of Marketing Management, Vol. 28, No. 1-2, pp. 173-187.
36. Olavarrieta, S. and Friedmann, R. (2008). Market orientation, knowledge-related resources and frm performance, Journal of Business Research, Vol. 61, No. 6, pp. 623-630.
37. Pallant, J. (2011). SPSS Survival Manual (4th ed.), Allen & Unwin, Crows Nest, New South Wales, Australia.
38. Panigyrakis, G. G. and Theodoridis, P. K. (2007). Market orientation and performance: An empirical investigation in the retail industry in Greece, Journal of Retailing and Consumer Services, Vol. 14, No. 2, pp. 137-149.
39. Pelham, A. M. (1997a). Mediating Influences on the Relationsmp between Market Orientation and Proftability in Small Industrial Firms, Journal of Marketing Theory and Practice, Vol. 5, No. 3, pp. 55-76.
40. Pelham, A. M. (1997b). Market orientation and performance: the moderating effects of product and customer differentiation, Journal of Business & Industrial Marketing, Vol. 12, No. 5, pp. 276-296.
41. Pelham, A. M. (1999). Influence of Environment, Strategy, and Market Orientation on Performance in Small Manufacturing Firms, Journal of Business Research, Vol. 45, No. 1, pp. 33-46.
42. Pelham, A. M. and Wilson, D. T. (1996). A longitudinal study of the impact of market structure, frm structure, strategy, and market orientation culture on dimensions of small-frm performance, Journal of the Academy of Marketing Science, Vol. 24, No. 1, pp. 27-43.
43. Petz, B. (2004). Osnovne statističke metode za nematematičare, Naklada Slap, Zagreb, Hrvatska.
44. Protcko, E. and Dornberger, U. (2014). The impact of market orientation on business performance – the case of Tatarstan knowledge-intensive companies (Russia), Problems and Perspectives in Management, Vol. 12, No. 4, pp. 225-231.
45. Raju, P. S., Lonial, S. C. and Crum, M. D. (2011). Market orientation in the context of SMEs: A conceptual framework, Journal of Business Research, Vol. 64, No. 12, pp. 1320-1326.
46. Raju, P. S., Lonial, S. C. and Gupta, Y. P. (1995). Market orientation and performance in the hospital industry, Journal of Health Care Marketing, Vol. 15, No. 4, pp. 34-41.
47. Rapp, A., Beitelspacher, L. S., Schillewaert, N. and Baker, T. L. (2012). The differing effects of technology on inside vs. outside sales forces to facilitate enhanced customer orientation and interfunctional coordination, Journal of Business Research, Vol. 65, No. 7, pp. 929-936.
48. Rodriguez Cano, C., Carrillat, F. A. and Jaramillo, F. (2004). A meta-analysis of the relationship between market orientation and business performance: evidence from fve continents, International Journal of Research in Marketing, Vol. 21, No. 2, pp. 179-200.
49. Ruekert, R. W. (1992). Developing a market orientation: An organizational strategy perspective, International Journal of Research in Marketing, Vol. 9, No. 3, pp. 225-245.
50. Salavou, H. (2002). Proftability in market-oriented SMEs: does product innovation matter? European Journal of Innovation Management, Vol. 5, No. 3, pp. 164-171.
51. Shoham, A., Rose, G. M. and Kropp, F. (2005). Market orientation and performance: a meta-analysis, Marketing Intelligence & Planning, Vol. 23, No. 5, pp. 435-454.
52. Slater, S. F. and Narver, J. C. (1994). Does Competitive Environment Moderate the Market Orientation-Performance Relationship?, Journal of Marketing, Vol. 58, No. 1, 46-55.
53. Stanković, L., Đukić, S. and Popović, A. (2013): Tržišna orijentacija preduzeća u Srbiji kao determinanta njihove inovativnosti i konkurentnosti. In N. Janićijević & S. Lovreta (Eds.), Konkurentnost preduzeća u Srbiji, pp. 147-166, CID, Beograd, Republika Srbija.
54. Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011, Journal of Business Research, Vol. 69, No. 12, pp. 5611-5619.
55. Willer, H. and Lernoud, J. (2014). The World of Organic Agriculture. Statistics and Emerging Trends 2014, Research Institute of Organic Agriculture (FiBL), Frick, and International Federation of Organic Agriculture Movements (IFOAM), Bonn, Germany.
56. Willer, H. and Lernoud, J. (2017). The World of Organic Agriculture. Statistics and Emerging Trends 2017, Research Institute of Organic Agriculture (FiBL), Frick, and International Federation of Organic Agriculture Movements (IFOAM), Bonn, Germany
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Published
2017-12-20
How to Cite
Vehapi, S., & Milanović, M. (2017). THE EFFECT OF MARKET ORIENTATION ON BUSINESS PERFORMANCE OF SERBIAN ORGANIC PRODUCERS. Economics of Agriculture, 64(4), 1651–1668. https://doi.org/10.5937/ekoPolj1704651V
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