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Published by: Allied Business Academies
Originally published in: "Academy of Marketing Studies Journal", 2014
Length: 22 pages

Abstract

Building on the environment-strategy-performance theoretical framework and the configuration theory, the present study develops and tests a model in which the environmental market conditions of competitive intensity and market turbulence impact firm performance through their impact on strategic focus and market orientation of service sector companies. The findings of the study indicate that external environmental factors (ie, market turbulence and competitive intensity) impact the strategic focus (ie, defender versus prospector) of the service companies. The results of the study provide empirical support for the positive relationship between prospector focus and customer orientation. It is also found that customer orientation and inter-functional coordination enhance the performance of service sector companies.

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Abstract

Building on the environment-strategy-performance theoretical framework and the configuration theory, the present study develops and tests a model in which the environmental market conditions of competitive intensity and market turbulence impact firm performance through their impact on strategic focus and market orientation of service sector companies. The findings of the study indicate that external environmental factors (ie, market turbulence and competitive intensity) impact the strategic focus (ie, defender versus prospector) of the service companies. The results of the study provide empirical support for the positive relationship between prospector focus and customer orientation. It is also found that customer orientation and inter-functional coordination enhance the performance of service sector companies.

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