Quick Links

 

Login



Other Articles by Authors

Nur Afifah
Ilzar Daud



Authors and WSEAS

Nur Afifah
Ilzar Daud


WSEAS Transactions on Business and Economics


Print ISSN: 1109-9526
E-ISSN: 2224-2899

Volume 16, 2019

Notice: As of 2014 and for the forthcoming years, the publication frequency/periodicity of WSEAS Journals is adapted to the 'continuously updated' model. What this means is that instead of being separated into issues, new papers will be added on a continuous basis, allowing a more regular flow and shorter publication times. The papers will appear in reverse order, therefore the most recent one will be on top.

Volume 16, 2019


Market Orientation on Performance in Indonesian Service Company: The Mediating Role of Service Innovation

AUTHORS: Nur Afifah, Ilzar Daud

Download as PDF

ABSTRACT: Market orientation has an important role for organizations to create superior and sustainable performance and to generate innovative services. The present study aims to propose a conceptual model regarding the relationships between market orientation and performance of the Indonesian service company, known as local enterprises water services (LEWS), located in the west Kalimantan province, with innovative services as a mediating role. Purposive sampling method was used for data collection from 120 employees employed in several departments, including production, distribution, water loss control and costumer service. Data were further analyzed using structural equation modeling partial least square (SEMPLS). The model used in this study was confirmed by the collected data. Our findings suggested that market orientation positively affects service innovation and company performance.

KEYWORDS: - Market orientation, service innovation, company performance, company, organization, Indonesia

REFERENCES:

[1] A.F. Wronka, Mackowska, The resource-bases view in the management of a public organizations-stakeholder perspective, University of Economics in Katowice, 2011.

[2] S.H. Liao, W. Chang, C.C. Wu, M. Katrichis, A Survey of market orientation research (1995- 2008), Industrial Marketeing Management. Vol.40, No.2, 2011, pp.301-310.

[3] M. Faryabi, R. Tajvidi, M. Tajvidi, Investigate the relationship between market orientation and competitive advantage in the Iran Tractor Manufacturing Industries, Iranian Journal of Farasoye Modiriat, Vol.5, No.17, 2011, pp.131-160.

[4] T. Ramayah, N. Samat, M.C. Lo, Market orientation, service quality and organizational performance in service organizations in Malaysia. Asia-Pacific Journal of Business Administration, Vol.3, 2011, pp. 8-27.

[5] C.H. Chin, M.C. Lo, T. Ramayat, Market orientation and organizational performance: The Moderating Role of Service Quality. SAGE Article, 2013, DOI: 10.1177/2158244013512664

[6] E. Protcko, U. Domberger, The impact of market orientation on business Performance-the case of tatarstan knowledge-intensive Companies (Rusia). Problem and Perspective in Management, Vol. 12, No.4, 2014, pp. 225- 231.

[7] G.A. Wilson, J. Perepkin, D.D. Zhang, M. Vachon, Market orientation, alliance orientation, and the business performance in the biotechnology in Industry. Journal of Commercial Biotechnology, Vol.20, No.2, 2014, pp. 32-40.

[8] S.A. Muhtar, M. Rusli, An empirical analysis of market orientation and business performance relationship in the context of developing economy. International Journal of Academic Researc in Business Social Sceince, Vol.4, No.9, 2014, pp. 457-470.

[9] C. Lo-May, M.A. Azlan, T. Ramayah, C.W. Yin, Examining the effectsof leadership, market orientation and leader member exchange (LMX) on organisational performance. Inzinerine EkonomikaEngineering Economics, Vol.26, No.4, 2015, pp. 409–421.

[10] J. Rubina, A.S. Mukhtar, M. Rosli, The moderating effect of external environment on the relationship between market orientation and business performance: A quantitative approach, IPBJ, Vol.8, No. 1, 2016, pp. 16- 25.

[11] Z. Hina., M.H. Hafeez, M.N.M. Shariff, Relationship between market orientation, organizational learning, organizational culture and organizational performance: Mediating impact of innovation, South East Asia Journal of Contemporery Business and Economic and Law, Vol.9, No.2, 2016, pp. 40-56.

[12] M. Augusto, F. Coelho, Market orientation and net-to-the-world products: Exploring the moderating effects of innovativeness, competitive strength, and environmental forces. Industrial Marketing Management, Vol.38, 2009, pp. 94-108.

[13] M. Song, A. Di Benedetto, L. Song, A stage service innovation model, Decision Sciences, Vol.40, No.3, 2009, pp. 571-599.

[14] R. Tsiotsou, Delineating the effect of market orientation on services performance: A component-wise approach, The Service Industries Journal, Vol.30, No.3, 2010, pp. 375-403.

[15] A. Andreasen, P. Kotler, Strategic marketing for non profit organizations. Prentice-Hall, Englewood Chiffs, NJ, 2003.

[16] E.W. Mainardes, A.S Cerqueira, Measuring the internal market orientation in the public sector. Ekonomski Vjesnik, Vol.28, 2014, pp. 53-70.

[17] M.M. Isabel, P.C. Jose, The relationship between resource dependence and market orientation: The specific case of non profit organizations, European Journal of Marketing. Vol.40, No.5/6, 2016, pp. 533- 553.

[18] N. Afifah, Transformational leadhership, market orientation and services quality to performance of PDAM Tirta Khatulistiwa Pontianak West Kalimantan, Journal Ekuitas, Vol.1, No. 1, 2017, pp. 1- 23.

[19] A.K.M. Au, A. C. B. Tse, The Effect of Market-orientation on Company Performance in the Service Sector: A comparative Study of the Hotel Industry in Hong Kong and New Zealand,” in J. Dawes (1999), “The Relationship Between Subjective and Objective Company Performance Measures in Market-orientation Research: Further Empirical Evidence, Marketing Bulletin, Vol.10, 1995, pp. 65-75.

[20] A. Hidalgo, L. D’Alvano, Service innovation: Inward and outward related activities and cooperation mode, Journal of Business Research, Vol.67, No.5, 2014, pp. 698-703.

[21] O.A. Nor, M.A. Nazri., S.S. Alam, A. Ahmad, Assessng the factor influencing service innovations capabilities and performance, Information Management and Business Review. Vol.8, No.4, 2016, pp. 52-63.

[22] L. Suddin, Market orientation and organizational performance: Empirical evidence from SMES Malaysia, Labuan eJournal of Muamalat and Society, Vol.3, 2009, pp. 25–33.

[23] G. Gunday, G. Ulusoy, K. kilic, L. Alpkan, Effects of innovation types on firm performance, International Journal of Production Economics, Vol.133, No.2, 2011, pp. 662–676.

[24] C. Valmohammadi, Investigating innovation management practices in Iranian organizations, Journal Innovation, Vol.14, No.2, 2012, pp. 247 -255.

[25] M. Saunila, S. Pekkola, J. Ukko, The relationship between innovation capability and performance: The moderating effect of measurement, International Journal of Productivity and Performance Management, Vol.63, No.2, 2014, pp. 234 -249.

[26] J.C. Naver, S.F. Slater, The positive effect of a market orientation on business proditability: A balanced replication, Journal of Business Research, Vol.48, No.1, 2000, pp. 69-73.

[27] E. Kaynak, A. Kara, Market orientation and organizational performance: A comparison of industrial versus consumer companies in mainland China using market orientation scale (MARKOR), Journal of Small Business Management, Vol.43, No.2, 2004, pp. 105– 118.

[28] V. Wood, S. Bhuian, Kiecker, Market orientation and organizational performance in non-profit hospitals, Journal of Business Research, Vol.48, 2000, pp. 213-26.

[29] Y. Zhou, P. Chao, G. Huang, Modeling market orientation and organizational antecedents in a social marketing context, International Marketing Review, Vol. 26, No.3, 2009, pp. 256-274.

[30] C. Story, P. Cankurtaran, P. Papastathopoulou, E.J. Hultonk, Success factors for service innovation: A meta-analysis, Journal of Poduct Innovation Management, Vol. 3, No.5, 2015, https://doi.org/10.1111/jpim.12307.

[31] L. Witell, H. Snyder, A. Gustafsson, P. Fombelle, P. Kristensson, Defining service innovation: Areview and synthesis, Journal of Business Research, Vol.3, No.1, 2016, pp. 2863-2872.

[32] P.J. De Jong, O. Marsili, The fruit flies of innovations: a taxonomy of innovative small firms, Research Policy, Vol. 35, 2006, pp. 29- 213.

[33] J. Hartley, J. Sorensen, J. Torfing, Collaborative innovation: Aviable alternative to market competition and organizational entrepreneurship, Public Administration Review, Vol.73, 2013, pp. 821-830.

[34] H. DeVries, V. Bekkers, L. Tummers, Innovation in the Public Sector: A systematic review and future reseach agenda. Public Administration, Vol.94, No.1, 2016, pp. 146- 166.

[35] R.M. Walker, C.N. Avellaneda, F.S. Berry, Exploring the diffusion of innovation among high and low innovative localities, Public Management Review, Vol.13, No.1, 2011, pp. 95-125.

[36] V. Bekkers, J. Edelenbos, B. Steijn, Innovationin the public sector. Palgrave Macmillan New York, 2011.

[37] J.F. Hair, Anderson, Multivariate Data Analysis, Pearson International Edition, 2010.

[38] R. Harris, Q. Li, Exporting, R and D, and absorptive capacity in UK establishments, Oxford Economic Papers, Vol.61, 2009, pp. 74-103.

[39] V. Millot, Trademarks as an indicator of product and marketing innovation. OECD Science, Technology and Industry Working Paper, 2009, 1-46.

[40] S.J. Hogan, G.N. Soutar, J.R. McCollKennedy, J.C. Sweeney, Reconceptualing professional services firm innovation capability: scale development. Industrial Marketing Management, Vol.40, No.8, 2011, pp. 1246-273.

[41] O. Funda, T. Cihan, Effect of Srategic Leadership Styles on Firm Performance: A study in a Turkish SME, Procedia -Social and Behavioral Sciences, Vol.150, 2014, pp. 778 – 784.

[42] D. Madsen, T. Stenheim, Perceived benefit of balanced scorecard implementation: some preliminary evidence, Problems and Perspective in Management, Vol.12, No. 3, 2014, pp. 81-90.

[43] M.A. Mahmoud, Market Orientation and Business Performance Among SMEs in Ghana, International Business Research, Vol.4, No.1, 2011, pp. 241-251.

[44] J. Gummerus, Value creation processes and value outcomes in marketing theory: Strangers or siblings? Marketing Theory, Vol. 13, No. 1, pp. 19-46.

[45] L.G. Pee, Kankanhalli, Interactions among factors influencing knowledge management in Public Sector organizations: A resource-based view, Goverment Information Quartely, Vol.33, No.1, 2015, pp. 188-199.

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #20, pp. 171-177


Copyright Β© 2018 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution License 4.0