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E-ISSN : 2233-5382

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Vol.8 No.1

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The Impact of Market Orientation Indices, Marketing Innovation, and Competitive Advantages on the Business Performance in Distributer Enterprises

The Impact of Market Orientation Indices, Marketing Innovation, and Competitive Advantages on the Business Performance in Distributer Enterprises

The Journal of Industrial Distribution & Business(JIDB) / The Journal of Industrial Distribution & Business, (E)2233-5382
2017, v.8 no.1, pp.23-31
https://doi.org/https://doi.org/10.13106/ijidb.2017.vol8.no1.23.
Javanmard, Habibollah (Department of Management, Islamic Azad University)
Hasani, Hoda (Business Administration, Islamic Azad University)
Javanmard, Habibollah, & Hasani, Hoda. (2017). The Impact of Market Orientation Indices, Marketing Innovation, and Competitive Advantages on the Business Performance in Distributer Enterprises. The Journal of Industrial Distribution & Business(JIDB), 8(1), 23-31, https://doi.org/https://doi.org/10.13106/ijidb.2017.vol8.no1.23.

Abstract

Purpose - Market orientation is a key factor for business performance in today's fluctuating conditions. This study investigates whether the employment of innovation can improve the innovative capability and increase the performance by gaining competitive advantages or not. Therefore, this study aims to investigate the effects of market orientation on the performance of small and medium size distributer enterprises (SMDEs) in Iran. Research design, data, and methodology - Customer orientation, Competitor orientation, and Inter-functional coordination have been regarded as market orientation indices to determine the effects of these indices on marketing innovation, gaining competitive advantages, and companies' performance as well. Data were collected from managers and experts in SMDEs in Iran. The structural equations modeling are used for analysis. Results - The results indicated that marketing innovation has been improved in competitive companies that enjoyed a high level of Inter-functional coordination among the various units. Besides, marketing innovation resulted in gaining competitive advantages regarding cost management, concentration, and differentiation in these companies. In addition, it was observed that SMDEs that obtain competitive advantages are equipped to reap superior performance. Conclusions - With cost management, differentiation and concentration are more likely to enhance the enterprise efficiency and effectiveness than other companies. Additionally, competitiveness, inter-functional coordination, and marketing innovation in SMDEs have a positive impact on marketing innovation.

keywords
Market Orientation, Marketing Innovation, Competitive Advantages, Business Performance, Distributer Enterprises

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