Market orientation versus innovative culture: two routes to superior brand performance

Market orientation versus innovative culture: two routes to superior brand performance Purpose – The paper aims at providing insights into how market orientation and organisational culture together contribute to brand performance, shedding light on the nexus between innovative culture and market orientation, and examining the relative importance of innovative culture over market orientation in affecting brand performance. Design/methodology/approach – In a cross‐sectional survey, a variance‐based structural equation modelling was used to test hypotheses on a convenience sample of 180 marketing executives in Australia. Findings – Organisations with a strong innovative culture appear to recognise that building a successful brand depends not always on the interpretation of feedback received from current customers and competitors, but instead on organisations' ability to innovatively develop unique ways of delivering superior value to customers. The findings were consistent with this advice to both market orientation and innovative culture. In addition, the findings indicate that market orientation is a response partially derived from the organisation's innovative culture. Finally, it was also found that organisational culture was relatively more important than market orientation in affecting organisational performance. Originality/value – The paper advances the understanding of performance‐based market orientation research by investigating structural relationships among market orientation, organisational culture, and organisational performance at the micro level (e.g. brand performance). http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Journal of Marketing Emerald Publishing

Market orientation versus innovative culture: two routes to superior brand performance

European Journal of Marketing, Volume 41 (7/8): 20 – Jul 31, 2007

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Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
0309-0566
DOI
10.1108/03090560710752438
Publisher site
See Article on Publisher Site

Abstract

Purpose – The paper aims at providing insights into how market orientation and organisational culture together contribute to brand performance, shedding light on the nexus between innovative culture and market orientation, and examining the relative importance of innovative culture over market orientation in affecting brand performance. Design/methodology/approach – In a cross‐sectional survey, a variance‐based structural equation modelling was used to test hypotheses on a convenience sample of 180 marketing executives in Australia. Findings – Organisations with a strong innovative culture appear to recognise that building a successful brand depends not always on the interpretation of feedback received from current customers and competitors, but instead on organisations' ability to innovatively develop unique ways of delivering superior value to customers. The findings were consistent with this advice to both market orientation and innovative culture. In addition, the findings indicate that market orientation is a response partially derived from the organisation's innovative culture. Finally, it was also found that organisational culture was relatively more important than market orientation in affecting organisational performance. Originality/value – The paper advances the understanding of performance‐based market orientation research by investigating structural relationships among market orientation, organisational culture, and organisational performance at the micro level (e.g. brand performance).

Journal

European Journal of MarketingEmerald Publishing

Published: Jul 31, 2007

Keywords: Market orientation; Organizational culture; Innovation; Brand management; Australia

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