Marketing Faculty Publications and Presentations

Implementing Interfunctionally-Coordinated Market Orientation in Industrial SMEs: Lessons Learned in Commodity Markets

Document Type

Article

Publication Date

Winter 2017

Abstract

Manufacturing-centered industrial small and medium-sized enterprises (ISMEs) competing in commodity markets face a set of challenging situations such as production orientation, marginalization of marketing, and commoditization. A close examination was conducted on the implementation of the conventional market-oriented organizational culture in ISMEs, with a focus on how interfunctional coordination moderates the impacts of customer orientation and competitor orientation. Based on quantitative analysis using 203 ISMEs located in Midwest U.S., the unique pattern of the influence was described. Although customer orientation and competitor orientation are salient predictors of customer relationship outcomes and business performance, the level of interfunctional coordination efforts in business processes lessens the positive influences of customer orientation and competitor orientation due to increased customer cost and internal expense. The findings suggested that ISMEs invest in re-building market-oriented organizational culture based on customer orientation and competitor orientation protocols with reduced level of interfunctional activities. Practically, ISMEs competing in commodity markets should understand the nature of interfunctional coordination practices and become more efficient toward market orientation.

Publication Title

Journal of Managerial Issues

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