Consequences of market orientation for customers and employees

Abstract

PurposeThe present empirical study intends to address a significant topic for business management, such as the influence of market orientation (MO) on the internal and external environments of an organisation. More precisely, the main objective of this paper focuses on the effect of such an orientation on employees – organisational commitment and OCBs – as well as on customers – satisfaction and perceived service quality.Design/methodology/approachStructural equation models are employed to analyse the data collected from the spanish retail banking sector in order to verify the hypotheses corresponding to the causal relationships proposed in our research model.FindingsThe results achieved in this research represent significant contributions both from a theoretical perspective as well as for management in the service industry. From a theoretical perspective, these findings reinforce the research position stressing the role of the employees in the MO relationship and the operational level of the business incorporating new evidence into this emerging field of study.Research limitations/implicationsLimitations of the study can account for the anomalous relationships that have been identified. First, the cross‐sectional nature of the study could have been an obstacle to revealing short‐term answers. In addition, the empirical study focused on one particular case in the service industry – banking – hindered the generalization of results.Originality/valueProvides further research on the role of market orientation as a major source of achieving sustainable competitive advantage.

Entrepreneurial Orientation, Human Resources Information Management, and Firm Performance in SMEs

“…Research suggests a positive relationship between HRIM and firm performance (Ericsson, 1990;Rodger, Pendharkar, Paper, & Molnar, 1998). Other studies suggest positive relationships among MO, HRIM, and firm performance (Mavondo, Chimhanzi, & Stewart, 2005;Wei & Lau, 2005), namely through the positive and direct effect of MO on organizational commitment and corporate spirit (Barroso Castro, Martín Armario, & Sánchez del Rio, 2005). Mavondo et al (2005) have argued that human resources provide a source of competitive advantage when attaining a unique combination of difficult to duplicate skills.…”

“…De Clercq and Rius (), on the other hand, found that EO has a positive impact on organizational commitment. According to Barroso Castro et al (), organizational commitment plays an important role in the relationship between HRIM and firm performance. Wiklund and Shepherd found a positive relationship between knowledge‐based resources related to the discovery and exploitation of opportunities and firm performance, and found that this relationship was stronger for firms with higher EO.…”

Brand Identity Management and Corporate Social Responsibility: An Analysis From Employees’ Perspective in the Banking Sector

“…Employees are more motivated to engage in brand citizenship behaviours when they are committed to their organisations (Barroso-Castro et al 2005;Burmann et al 2009). Employees who feel committed to their organisations will have a more positive attitude towards their jobs and this can result in a greater acknowledgement of the effort made by the company towards them.…”

A causal model of the declaration intention of banks for suspected money-laundering transactions based on organizational commitment perspective

“…Organizational commitment was first proposed by Becker (1960), who defined it as the strength of individual identification and individual participation in the organization. Then, Meyer and Allen (1997) stated that organizational commitment is “a psychological state that characterizes the employee’s relationships with the organization; and has implications for the decision to continue membership in the organization.” Similarly, Barroso Castro et al (2005) defined organizational commitment as the feeling of belonging employees have towards the organization, which influences their ability to perform above and beyond expectations in achieving organizational goals. In other words, employees with high organizational commitment often have a strong identification with and a sense of belonging to the organization, which brings about behaviour that conforms to the organization’s norms.…”