It is commonly argued that, in order to meet increasing competition, public transport organizations and systems need to be market oriented. Even though the notion of market orientationhas not been explicitly addressed in public transport research, studies relevant to market orientation have been conducted. The aim of this paper is to introduce the concept of market orientation into the field of public transport, to review previous research into market orientation in public transport research, and to suggest directions for future research. Market orientation is defined as the generation and dissemination of market intelligence by organizations, as well as responses to it. The review suggests that previous academic research has focused on intelligence generation by developing and using models for measuring travel behaviour, stated preferences, perceived customer quality, and satisfaction. Studies of responsiveness have mainly addressed the physical improvements made in public transport organizations, which is also the primary concern of the industry research accounted for. There has been less research into the dissemination of market intelligence, the drivers of market orientation, the relations between the elements, and the overall concept of market orientation in public transport. It is thus concluded that future public transport research needs to address these issues.
Public services have been subjected to processes of deregulation, competition, and privatization in many countries worldwide. One popular reform has involved focusing on competitive procurement. This context, where public and private organizations jointly deliver the service in a dyad, makes the market orientation of public services highly complex. The main elements of market orientationintelligence generation, intelligence dissemination and responsiveness-have shown themselves to be valid and of significance in both the private and public sectors. Nevertheless, the empirical context of the public sector involves a complexity that has been poorly addressed in market orientation research. In this study, we research the Swedish public transport industry and survey buyer and provider organizations in order to determine how market-orientated activities are approached in public-private service dyads. We present three theoretically-underpinned relationship types-buyer dominated, provider dominated and collaborative-which we suggest as having implications for market-oriented activities. A survey of public transport authorities' (buyers, n = 48) and operators' (providers, n = 49) market orientation activities reveals the concurrent prevalence of characteristics from all three relationship types, as both parties try to dominate the relationship while also engaging in collaborative efforts. Drawing on our theoretical framework and our empirical results, we conclude that there are legitimate differences in the perspectives of buyers and providers, and that these differences, if acknowledged and properly managed, can provide valuable resources in the development of a joint market orientation in complex public-private settings.
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