The effect of market orientation components on financial chain performance (Case study: branches and offices of Tehran Maskan Bank)

Document Type : Original Article

Authors

1 M.A. in Business Administration, Islamic Azad University, Tehran West Branch, Tehran, Iran

2 PhD in Economics, Assistant Professor of Islamic Azad University, Tehran West Branch, Tehran, Iran

Abstract

The aim of this study was to measure the effect of market orientation (customer orientation, competitiveness and coordination between tasks) on financial performance among all employees of branches and offices of the Maskan Bank in Tehran. The research method is empirical descriptive research survey. According to the number of statistical population at the time of data collection (3120 people in 2018), with the help of Krejcie and Morgan table 342 people were chosen as the sample population. The data collection tool is a standard questionnaire. After confirming the validity and reliability of the questionnaire, Kolmogorov-Smirnov test was performed to check the normality of the data. Smart PLS3 software was used to test the model and test the hypotheses. Data analysis showed that customer orientation and competitiveness do not directly affect financial performance but affect financial performance through the innovation mediator variable. Coordination between tasks directly affects financial performance. Also, the impact of customer orientation and competitiveness on innovation and innovation on financial performance is confirmed.

Keywords

Main Subjects


Braz, R., Scavarda, L. & Martins, R. (2011). Reviewing and improving performance measurement systems: An action research. International Journal of Production Economics, 133(2), 751-760.
Dadfar, H., Dahlgaard, J.J., Brege, S. & Alamirhoor, A. (2013). Linkage between organizational innovation capability, product platform development and performance: The case of pharmaceutical small and medium enterprises in Iran. Total Quality Management, 34, 819-834.
Hemert, P., Nijkamp, P. & Masurel, E. (2013). From innovation to commercialization through networks and agglomerations: analysis of sources of innovation, innovation capabilities and performance of Dutch SMEs. The Annals of Regional Science, 50(2), 425-452.
Ho, K., Nguyen, C., Adhikari, R., Miles, M. & Bonney, L. (2018). Exploring market orientation, innovation, and financial performance in agricultural value chains in emerging economies. Journal of Innovation & Knowledge, 154-163.
Lee, Y. K., Kim, S. H., Seo, M. K. & Hight, S. k. (2015). Market orientation and business performance: Evidence from franchising industry. International Journal of Hospitality Management, 44, 28-37.
Lewrick, M., Williams, R., Maktoba, O., Tjandra, N. & Lee, Z.C. (2015). Radical and incremental innovation effectiveness in relation to market orientation in the retail industry: Triggers drivers, and supporters. Successful technological integration for competitive advantage in retail settings, 239-268.
Micheels, E. T. & Gow, H. R. (2011). The moderating effects of trust and commitment on market orientation, value discipline clarity, and firm performance. Agribusiness, 27(3), 360–378.
Narver, J.C. & Slater, S.F. (1990). The effect of a market orientation on business profitability. The Journal of Marketing, 54(1), 20–35.
Newman, A., Prajogo, D. & Atherton, A. (2016). The influence of market orientation on innovation strategies. Journal of Service Theory and Practice, 26(1), 72–90.
Ngo, L. & O'Cass, A. (2012). In search of innovation and customerÔÇÉrelated performance superiority: The role of market orientation, marketing capability, and innovation capability interactions. Journal of Product Innovation Management, 29(5), 861–877.
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 1-9.
Parto, A., Sofian, S. & Saat, M.M. (2016). The impact of enterprise resource planning systems on financial performance in developing county. International Review of Management and Business Research, 5(1), 176-187.
Raymond, L., Bergeron, F. & Croteau, A. M. (2013). Innovation capability and performance of manufacturing SMEs: The paradoxical effect of IT integration. Journal of Organizational Computing and Electronic Commerce, 23(3), 249-272.
Sok, P., O’Cass, A. & Mony Sok, K. (2013). Achieving superior SME performance: Overarching role of marketing, innovation, and learning capabilities. Australasian Marketing Journal, 21, 161-167.
Tajeddini, K. (2010). Effect of customer orientation and entrepreneurial orientation on innovativeness: Evidence from the hotel industry in Switzerland. Tourism Management, 31(2), 221-231.
Tajeddini, K. & Trueman, M. (2008). The potential for innovativeness: A tale of the Swiss watch industry. Journal of Marketing Management, 24(1–2), 169–184.
Voigt, K.-I., Baccarella, C., Wassmus, A. & Meißner, O. (2011). The effects of customer orientation on the product performance of technological innovations: A comparison between SMEs and large companies. The Technology Management in the Energy Smart World.
Volume 2, Issue 3
September 2019
Pages 88-103
  • Receive Date: 22 July 2019
  • Revise Date: 10 August 2019
  • Accept Date: 24 August 2019