The strategic implementation of market orientation culture : safeguarding customer value for better firm performance

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The strategic implementation of market orientation culture : safeguarding customer value for better firm performance

 

Author: Cheng, Hiu Hung
Title: The strategic implementation of market orientation culture : safeguarding customer value for better firm performance
Degree: D.B.A.
Year: 2014
Subject: Marketing -- Management.
Customer services -- Management.
Hong Kong Polytechnic University -- Dissertations
Department: Faculty of Business
Pages: vii, 148 pages : illustrations ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b2825655
URI: http://theses.lib.polyu.edu.hk/handle/200/7982
Abstract: With the extensive amount of research devoted to market orientation (MO), a market-oriented corporate culture is considered a key element for achieving superior corporate performance. However, empirical research on the relationship between a firm's MO culture and the dynamic mechanism that creates customer value is still limited. The aim of this study is to uncover how firms implement their MO culture through the customer value safeguarding mechanism to achieve better firm performance. To this end, we take a component-wise approach, and examine how the three dimensions of MO (customer orientation, competitor orientation, and inter-functional coordination) affect the two core components of the customer safeguarding mechanism (i.e., customer value creation and customer value maintenance), which eventually lead to business performance. Using multi-industry data, we empirically test the mediating effect of the customer value safeguarding mechanism in the MOfirm performance relationship. We also examine the moderating roles of technological turbulence and competitive intensity on the relationship between the customer value safeguarding mechanism and firm performance. Our findings confirm that customer orientation and inter-functional coordination are fully mediated by both customer value creation and customer value maintenance in the MOperformance link. In addition, our results help to clarify the important role of the customer value mechanism, which realizes a firm's MO culture in terms of its competitive advantage. Both technological turbulence and competitive intensity moderate the relationship between customer value safeguarding mechanism and firm performance.

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