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Published by: Allied Business Academies
Originally published in: "Academy of Marketing Studies Journal", 2015
Length: 20 pages

Abstract

Company performance is mainly determined by the strategy a company follows, and strategy is mainly determined by the market oriented culture and company structure. This link is affected by several factors. One of them is the external environment in which companies operate. Two types of external environment - market turbulence and competitive intensity - are investigated in this paper along with company structure. The purpose of this paper is twofold. First, the current research explores the moderating role of external environment and structure on the relationship between customer orientation and strategy types. Two major strategy types were used for this purpose, prospectors and defenders. In addition to customer orientation, another component of the market oriented culture; interfunctional coordination was investigated in the same manner. Second, the moderating role of external environment and company structure are examined on the relationship between companies' strategy level and their performance. The data is collected from selected service industries which they have high level of customer interaction and high level of labor of intensity. Hierarchical multiple regression and multiple group analysis procedure are employed for the data analyses. The results are discussed at the end from both theoretical and practical perspectives.

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Abstract

Company performance is mainly determined by the strategy a company follows, and strategy is mainly determined by the market oriented culture and company structure. This link is affected by several factors. One of them is the external environment in which companies operate. Two types of external environment - market turbulence and competitive intensity - are investigated in this paper along with company structure. The purpose of this paper is twofold. First, the current research explores the moderating role of external environment and structure on the relationship between customer orientation and strategy types. Two major strategy types were used for this purpose, prospectors and defenders. In addition to customer orientation, another component of the market oriented culture; interfunctional coordination was investigated in the same manner. Second, the moderating role of external environment and company structure are examined on the relationship between companies' strategy level and their performance. The data is collected from selected service industries which they have high level of customer interaction and high level of labor of intensity. Hierarchical multiple regression and multiple group analysis procedure are employed for the data analyses. The results are discussed at the end from both theoretical and practical perspectives.

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