Investigating the Relationship between Market orientation and Social Responsibility and their Effect on Firm Performance
Subject Areas : Business Management
Sadegh Feizollahi
1
,
Adel Fatemi
2
,
Alireza Shirmohammadi
3
1 - Instructor, Department of Management of Mehran Branch, Islamic Azad University, Mehran, Iran
2 - Assistant Professor, Department of Statistics, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
3 - Instructor, Payam Noor University, Ilam University, Management Department, Ilam, Iran
Keywords: Firm Performance, structural equation modeling, Market Orientation, social responsibility,
Abstract :
The purpose of this paper is to investigate the relationship between market orientation and social responsibility and their effects on firm performance. This paper uses casual -correlation analysis and is considered an applied research. The data were collected via a questionnaire survey distributed among 108 top and middle managers of commercial companies in Ilam Province. The data were analyzed by employing structural equation modeling and LISREL software. The findings of the study showed that the effect of market orientation on social responsibility is positive and significant. In addition, market orientation and social responsibility have a positive and significant relationship with firm performance. Furthermore, the results of model tests showed that the model has goodness-of-fit.
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Ketchen DJ Jr, Hult TGM, Slater SF. Toward greater understanding of market orientation and the resource-based view. Strategic Management Journal (2007); 28(4): 961-964
Kirca AH, Jayachandran S, Bearden WO. Market orientation: a meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing 2005; 69(2): 24-41.
Kotler, P. and Lee, N. Corporate social responsibility: doing the most good for your company and your cause, New Jersey: John Wiley & Sons 2005;219-43
Lai' Kee-Hung. Market orientation in quality-oriented organizations audits impact on their performance. International Journal of Production Economics 2003; 84(2): 17-34
Lee, Kyung Joo and Jang, Jeeln, Corporate social responsibility and firm operating performance. Proceedings of the Academy for Studies in International Business 2008; 8( 2):12-17
Levitt, T. "Marketing myopia". Harvard Business Review 1960; 38(4):45-56. Webster, Jr. F.E. 'Rediscovering the marketing concept", Business Horizons31(2): 29-39
li, yuaii and zhao, yongbin and tanjustin and liu, yi. Moderating effects of entrepreneurial orientation market orientation- performance linkage: evidence from Chinese small firms. Journal of small business management 2008; 46 (1) : 113-133
Longo, mariolina and Mura, matteo and bonoli, alessanra. Corporate social responsibility and corporate performance: the case of Italian smes. Corporate governance 2005; 5 (4):28-42
Maigna.n, and Ferrell, O.C. "Corporate social responsibility and marketing: an integrative framework", Journal of the Academy of Marketing Science2004; 32 (1):3-20
Makino, S. and Beamish, P.W. "Performance and survival of joint ventures with nonconventional ownership structures'', Journal of International Business Studies 1998; 29 (4): 797-818
Market Todorovic, zelimirwilliam & ma, jun. Entrepreneurial and communities: orientation relationship to performance. journal of enterprising people and places in the global Economy 2008; 2 (1): 21-36
Maydeu-Olivere, A, and Lado, N. "Market orientation and business performances mediated model", International Journal of Service Industry Management (2003); 14 ( 3): 284-309
Mcguire, J. B.Business and Society, McGraw-Hill, New York. 1993;117-130
Mintzberg,H.,&Waters,J.A.Ofstrategies,deliberate and emergent. Strategic Management Journal 1985;16(3):257-272
Narver, J.C. and Slater, S.F. "The effect of a market orientation on business profitability". Journal of Marketing (1990); 54 (4): 20-35.
Qu’ Riliang. The impact of market orientation and corporate social responsibility on firm performance. Asia Pacific Journal of Marketing and Logistics (2009); 21 (4): 580-582
Rettab, Belaid and Brik, Anis Ben and Mellahi, KamelA study of management perceptions of the impact of corporate social responsibility on organizational performance in emerging economies: the case of Dubai. Journal of Business Ethics (2009); 89(3) 371-390
Tangen s. Performance measurement: from philosophy to (2004), ;65(2): 291-333
Vance, S.C. "Are socially responsible corporations good investment risks?". Management Review1975; 64 (8): 19-24
Waddock, S.A., Bodwell, C. and Graves, S.B. "Responsibility: the new business imperative". Academy OfManagement Executive (2002); 16(2):132-47
Zhou, Kevin Zheng and Li, Julie Juan and Zhou, Nan and Su, Chenting.Market Orientation, job satisfaction, product quality, and firm performance: evidence from china. Strategic Management Journal Strat.Mgmt2008; 299(1): 985-1000.
_||_Agarwal, S., Erramilli, M.K. and Dev, C.S. "Market orientation and performance in service firms: role of innovation", Journal of Services Marketing,(2003); 7 (1): 68-82
Aupperle, K.E„ Cairoll; A.B. and Hatfield, J.D. "An empirical examination of the relationship between corporate socia responsibility andprofitability", Academy of Management Journal 1985; 28(3): 446-63
Bollen, k,a, structural equation with latent variable. New york: willy- interscience publication 1989:342-54
Carroll, A.B. "A three dimensional conceptual model of corporate social performance'', Academy of Management Review 1997; 4(1): 497-505
Chahal, Hardeep and Sharma, R.D. Implications of corporate social responsibility on marketing performance: a conceptual framework. Journal of Services Research(2006); 6(1):21-25
Deshpande, Rohit and U.Farley, Johno. Executive in Sights: Corporate Culture and Market Orientation: Comparing Indian and Japanes Firms. Joumal of international Marketing 1999; 7(4):29-36
Gebhardt GF, Carpenter GS, Sherry JF Jr. (2006). Creating a market orientation; a longitudinal, multiform, grounded analysis of cultural transformation. Journal of Marketing ,70(4): 37-55
Hooman, H. A. (2005). Structural Equation Modeling.First Tehran: Samt Publications, (In Persian).
Hult GTM, Ketohen DJ Jr., Slater SF. Market orientation and performance: an integration of disparate approaches. Strategic ManagementJorual (2005);26(12): 1173-1181
Jaworski, B.J.andKohli, A.J. "Market orientation, antecedents and consequences". Journal of Marketing,(1993); 57 ( 3): 53-70
Kelloway, e. k. Common practice in structural equation modeling. In v. l , cooper , &i. t .1995; 217-28
Ketchen DJ Jr, Hult TGM, Slater SF. Toward greater understanding of market orientation and the resource-based view. Strategic Management Journal (2007); 28(4): 961-964
Kirca AH, Jayachandran S, Bearden WO. Market orientation: a meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing 2005; 69(2): 24-41.
Kotler, P. and Lee, N. Corporate social responsibility: doing the most good for your company and your cause, New Jersey: John Wiley & Sons 2005;219-43
Lai' Kee-Hung. Market orientation in quality-oriented organizations audits impact on their performance. International Journal of Production Economics 2003; 84(2): 17-34
Lee, Kyung Joo and Jang, Jeeln, Corporate social responsibility and firm operating performance. Proceedings of the Academy for Studies in International Business 2008; 8( 2):12-17
Levitt, T. "Marketing myopia". Harvard Business Review 1960; 38(4):45-56. Webster, Jr. F.E. 'Rediscovering the marketing concept", Business Horizons31(2): 29-39
li, yuaii and zhao, yongbin and tanjustin and liu, yi. Moderating effects of entrepreneurial orientation market orientation- performance linkage: evidence from Chinese small firms. Journal of small business management 2008; 46 (1) : 113-133
Longo, mariolina and Mura, matteo and bonoli, alessanra. Corporate social responsibility and corporate performance: the case of Italian smes. Corporate governance 2005; 5 (4):28-42
Maigna.n, and Ferrell, O.C. "Corporate social responsibility and marketing: an integrative framework", Journal of the Academy of Marketing Science2004; 32 (1):3-20
Makino, S. and Beamish, P.W. "Performance and survival of joint ventures with nonconventional ownership structures'', Journal of International Business Studies 1998; 29 (4): 797-818
Market Todorovic, zelimirwilliam & ma, jun. Entrepreneurial and communities: orientation relationship to performance. journal of enterprising people and places in the global Economy 2008; 2 (1): 21-36
Maydeu-Olivere, A, and Lado, N. "Market orientation and business performances mediated model", International Journal of Service Industry Management (2003); 14 ( 3): 284-309
Mcguire, J. B.Business and Society, McGraw-Hill, New York. 1993;117-130
Mintzberg,H.,&Waters,J.A.Ofstrategies,deliberate and emergent. Strategic Management Journal 1985;16(3):257-272
Narver, J.C. and Slater, S.F. "The effect of a market orientation on business profitability". Journal of Marketing (1990); 54 (4): 20-35.
Qu’ Riliang. The impact of market orientation and corporate social responsibility on firm performance. Asia Pacific Journal of Marketing and Logistics (2009); 21 (4): 580-582
Rettab, Belaid and Brik, Anis Ben and Mellahi, KamelA study of management perceptions of the impact of corporate social responsibility on organizational performance in emerging economies: the case of Dubai. Journal of Business Ethics (2009); 89(3) 371-390
Tangen s. Performance measurement: from philosophy to (2004), ;65(2): 291-333
Vance, S.C. "Are socially responsible corporations good investment risks?". Management Review1975; 64 (8): 19-24
Waddock, S.A., Bodwell, C. and Graves, S.B. "Responsibility: the new business imperative". Academy OfManagement Executive (2002); 16(2):132-47
Zhou, Kevin Zheng and Li, Julie Juan and Zhou, Nan and Su, Chenting.Market Orientation, job satisfaction, product quality, and firm performance: evidence from china. Strategic Management Journal Strat.Mgmt2008; 299(1): 985-1000.
