The relationship between resource dependence and market orientation

Abstract

PurposeThis article sets out to examine the market orientation construct within the context of the non‐profit sector. Given the specificity of non‐profit organisations and the increasingly demanding resource environments in which these organisations operate, the adoption of the concept of marketing is viewed as an adaptive strategy for ensuring that organisations receive the necessary resources for accomplishing their missions and carrying out their activities. In line with this, the present article aims to investigate the extent to which the type of revenue strategy is related to the organisation's market orientation, towards donors and/or users.Design/methodology/approachDrawing from a resource dependence conceptual framework, the article reports findings from a quantitative study of a representative sample of Portuguese non‐profit organisations (NPOs). This approach was complemented by qualitative research methods. Combining these two approaches has given access to different levels of reality and provided a more holistic understanding of the phenomena under study.FindingsThe results from the present study demonstrate that Portuguese NPOs favour a market orientation towards users/beneficiaries, revealing a less proactive behaviour in relation to their donors. In the present study, the resource dependence theory has proved to be an important theoretical tool for understanding market orientation strategies within the non‐profit sector. The link between the type of resource strategy and the organisation's market orientation stands out as an important finding derived from the present study and is particularly visible in relation to donor market orientation. In addition, empirical data partially support the conclusion that diversification of revenue sources is likely to favour a higher degree of market orientation. Further refinement of the adequacy of the MARKOR scale within the context of the non‐profit sector stands out as an avenue for further research.Research limitations/implicationsAs the sample used for analysis was drawn from Portugal, the generalisability of the results to other countries remains to be tested.Practical implicationsThe findings of the present study may assist public policy‐makers in the design of more adequate policies in the allocation of resources to non‐profit organisations.Originality/valueThe study contributes to a better understanding of market orientation in the specific context of the non‐profit sector. Moreover, this is done through applying the market orientation scale to two different stakeholders (i.e. donors and users/beneficiaries) in the evaluation of market orientation and in its relationship with resource strategies.

Re-examining the deployment of market orientation in the public leisure sector

“…Recent attempts to address this void have reported favourable returns to such organisations. Lindsay and Murphy (1996), Siu and Wilson (1998), Vázquez, Alvarez, and Santos (2002), Macedo and Pinho (2006), White and Simas (2008), and Dolnicar and Lazarevski (2009) have all reported market orientation should improve the performance of non-profit or public sector organisations.…”

The Role of Relationally Embedded Network Ties in Resource Acquisition of British Nonprofit Organizations

“…I think it is because everyone is learning at this stage. (SH 6) It is increasingly inevitable for NPOs to commercialize their activity (also referred to as marketization) requiring them to become more business-like (Dart, 2004;Macedo & Pinho, 2006). To achieve the transformation or combination of nonprofit business and market-oriented business, NPOs require new operational knowledge that is necessary to become successful in generating revenues from commercial activity.…”

What Does Marketing Mean to Japanese NPO Managers?

“…Sargeant (2009) states that marketing helps nonprofit managers better understand the needs of their target audience and the management issues that they face. A number of scholars note the positive relationship between higher marketing orientation and organizational performance in nonprofit contexts (Chan & Chau, 1998;Levine & Xahradnik, 2012;Macedo & Pinho, 2006;Mahmoud & Yusif, 2012;Modi, 2012;Napoli, 2006;Shoham et al, 2006;Wood et al, 2000). A marketing oriented organization is "more likely to have dedicated marketing staff, to provide funding for marketing activities, to engage in regular communication with target audiences, to engage in public relations, and so forth" (Wymer, Boenigk, & Möhlmann, 2015, p. 129).…”