julian et al-2014-thunderbird international business review
DESCRIPTION
Marketing Orientation JournalTRANSCRIPT
![Page 1: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/1.jpg)
97FEATURE ARTICLE
Published online in Wiley Online Library (wileyonlinelibrary.com)
© 2013 Wiley Periodicals, Inc. • DOI: 10.1002/tie.21598
Correspondence to: Craig C. Julian, Southern Cross Business School, Southern Cross University, Locked Bag 4, Coolangatta, Queensland, Australia,
4225, 61-7-55893065 (phone), 61-7-55893703 (fax), [email protected], [email protected].
The Market Orientation–
Performance Relation-
ship: The Empirical
Link in Export Ventures
Introduction
There has been a proliferation of research pub-
lished over the past four decades on export mar-
keting performance (e.g., Aaby & Slater, 1989;
Cavusgil & Zou, 1994; Julian, 2003; Okpara, 2012). How-
ever, what stands out in the previous exporting literatures
are the multiplicity of views regarding the determinants
of export marketing performance and the nature of
the relationships between these variables and export
This study examines the empirical link between three dimensions of market orientation, namely,
customer orientation, competitor orientation and interfunctional coordination, and overall export
marketing performance in Indonesian export market ventures. The study was based on an empirical
investigation of fi rms involved in exporting to foreign countries from Indonesia. The primary data for
the study were collected from a self-administered mail survey of 877 export market ventures from
the manufacturing sector in Indonesia resulting in a sample of 109 usable responses being returned.
From the application of the multiple regression analysis it was concluded that all three dimensions
of market orientation had a signifi cant impact on export marketing performance when measured via
a composite measure of export marketing performance that included economic indicators, strategic
indicators, and satisfaction with performance. © 2013 Wiley Periodicals, Inc.
By
Craig C. Julian
Osman Mohamad
Zafar U. Ahmed
S. Sefnedi
![Page 2: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/2.jpg)
98 FEATURE ARTICLE
Thunderbird International Business Review Vol. 56, No. 1 January/February 2014 DOI: 10.1002/tie
relationship between market orientation and export mar-
keting performance still remains inconclusive at best.
Cadogan, Cui, Morgan, and Story (2005) argued that
the relationship between market orientation and export
marketing performance is of great interest to the inter-
national marketer. Furthermore, such a study is needed
because of the importance of international operations
to business survival and general economic well-being
(Abor, 2011; Deshpande & Farley, 2004; Okpara, 2012;
Owusu-Frimpong & Mmieh, 2007). Most research on the
relationship between market orientation and export mar-
keting performance has been conducted in a developed-
country context, and given the paucity of studies on this
relationship in a developing-country context, the need
for such a study was seen. As such, the objective of the
study was to examine the relationship between market
orientation and export marketing performance in export
market ventures in Indonesia, a developing country of the
Asia-Pacific Region. Therefore, the study’s contribution is
both contextual and theoretical. The study’s findings
provides empirical evidence on the relationship between
market orientation and export marketing performance in
a developing-country context, overcoming the void in the
marketing performance (Abor, 2011; Cavusgil & Zou,
1994; O’Cass & Julian, 2003; Singh, 2009). The research-
ers in this field suggest that it is partly due to the poor
conceptualization of the measures of export marketing
performance (Julian, 2003), the weakness in the theo-
retical foundations of the export marketing performance
literature, and its irrelevance in practice (Dhanaraj &
Beamish, 2003). Dhanaraj and Beamish (2003) suggested
that there is a need for a parsimonious model of export
marketing performance and its determinants so that it
can be understood and implemented by practitioners. As
such, these issues need to be addressed in future research
conceptually and empirically in order to reduce the con-
fusion in the literature (Griffith, Jacobs, & Richey, 2006;
Julian, 2010; Singh, 2009). Currently, in the literature
there is minimal consensus on a model of export market-
ing performance.
On the one hand, market orientation has been
identified as a significant variable impacting firm perfor-
mance (Kirca, Jayachandra, & Bearden, 2005). On the
other hand, the results of other studies on how market
orientation influences firm performance are not so
conclusive, suggesting that market orientation does not
directly influence firm performance but rather impacts
performance via other mediating variables (Sin, Tse,
Yau, Chow, & Lee, 2005; Singh, 2009). Furthermore,
some studies found positive and significant relationships
(Julian, 2010) while other studies reported nonsignificant
relationships when performance was measured via alter-
native measures of performance, for example, market
share (Baker & Sinkula, 2005). Even other studies found
that market orientation was related to firm performance
only for certain subjective measures (Rose & Shoham,
2002), and other studies suggested that market orienta-
tion had a negative impact on performance (Cadogan &
Cui, 2004). As such, the evidence of a significant relation-
ship between market orientation and firm performance is
still far from conclusive.
Additionally, it is interesting to note that most previ-
ous research on market orientation has been conducted
with respect to a firm’s performance in the domestic
market, with limited research being conducted on the
relationship between market orientation and export mar-
keting performance (Cadogan & Cui, 2004). Grinstein
(2008) also suggested that further conceptual and empiri-
cal research needs to be conducted on market orientation
in different environmental and organizational contexts.
Only in recent years have researchers explored market ori-
entation in an international context (Griffith et al., 2006;
Hastings & Saperstein, 2010; Julian, 2010; 2011; Singh,
2009). However, the empirical evidence of a significant
It is interesting to note that most previous research on market orientation has been conducted with respect to a firm’s performance in the domestic market, with limited research being con-ducted on the relationship between market orientation and export marketing performance.
![Page 3: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/3.jpg)
The Market Orientation–Performance Relationship: The Empirical Link in Export Ventures 99
DOI: 10.1002/tie Thunderbird International Business Review Vol. 56, No. 1 January/February 2014
Although many studies have attempted to measure
market orientation differently when examining its empir-
ical relationship with different measures of performance
most previous research has either adopted the measures
developed by Narver and Slater (1990) (e.g., Grinstein,
2008; Hooley et al., 2003; Sin et al., 2005; Singh, 2009)
or that of Kohli and Jaworski (1990) (e.g., Baker &
Sinkula, 2005; Kyriakopoulos & Moorman, 2004; Racela,
Chaikittisilpa, & Thoumrungroje, 2007).
Kohli and Jaworski (1990) were, arguably, the pio-
neers of market orientation research. Kohli and Jaworski
viewed market orientation as the implementation of the
marketing concept. In other words, a firm that is market
oriented is one that acts consistently with the market-
ing concept, that is, determining the needs and wants
of target markets and delivering the desired satisfaction
more effectively and efficiently than competitors (Kotler,
Adam, Brown, & Armstrong, 2008). Kohli and Jaworski
conducted an extensive review of the marketing literature
over the previous 35 years, they conducted interviews with
62 managers both marketing and nonmarketing manag-
ers in the United States, and defined market orientation
as “the organization-wide generation of market intelli-
gence pertaining to current and future customer needs,
dissemination of the intelligence across departments, and
organization-wide responsiveness to it” (Kohli & Jaworski,
1990, p. 6).
As such, according to Kohli and Jaworski (1990),
there are three important components of market ori-
entation, namely, intelligence generation, intelligence
dissemination, and responsiveness. Intelligence gen-
eration refers to the collection and assessment of both
customers’ current and future needs, plus the impact
of government regulations, competitors, technology,
and other environmental forces. Market intelligence
is not the exclusive responsibility of the marketing
department. Instead, it is all departments’ responsibil-
ity. Market intelligence must be communicated and
disseminated throughout an organization in both for-
mal and informal ways. The effective dissemination
of market intelligence is seen as a vital action since it
provides a shared basis for collaborative efforts among
different departments (Racela et al., 2007). This is
similar to interfunctional coordination in organizations
(Grinstein, 2008).
Responsiveness refers to the ability of an organization
to react to intelligence generation and dissemination.
Responsiveness is divided into two activities, namely,
response design such as using market intelligence to
develop plans and response implementation such as
executing the plans.
literature on the relationship between market orientation
and performance in an international setting, as previous
research had been primarily focused on domestic settings
in developed countries. The theoretical contribution rests
with the study’s contribution to the export marketing lit-
erature by identifying market orientation as a significant
antecedent of export venture marketing performance,
whereas previous research had provided inconclusive
evidence suggesting that all future multivariate models
designed to assess export marketing performance and its
antecedents should include market orientation, as it may
also act as a mediating variable between other exogenous
and endogenous variables. A further contribution is the
contention that market orientation is a three-dimensional
construct, namely, customer orientation, competitor ori-
entation, and interfunctional coordination. Additionally,
the constructs developed here can serve as a foundation
for further research into export marketing.
Theoretical Framework
Substantial evidence has already been provided regarding
market orientation as a significant antecedent variable of
firm performance in a domestic context (e.g., Cadogan,
Cui, & Li, 2003; Cadogan, Diamantopoulos, & Siguw,
2002). It is a popular research theme and has received
great attention from many scholars (e.g., Cadogan et al.,
2002, 2003; Cadogan & Cui, 2004; Calontone, Kim,
Schmidt, & Cavusgil, 2006; Ellis, 2006; Griffith et al.,
2006; Grinstein, 2008; Julian, 2010; Kropp, Lindsay, &
Shoham, 2006; Singh, 2009). Scholars have provided
many different definitions of market orientation. For
example, Narver and Slater (1990) defined market orien-
tation as an organizational culture that has a set of shared
values and beliefs in putting customers first in business
planning. Narver and Slater also suggested that market-
oriented firms should focus not only on customers but
also on competitors and interfunctional coordination.
Deshpande and Farley (1998) defined market orienta-
tion as a set of cross-functional processes and activities
directed at creating and satisfying customers through
continuous needs assessment. However, their definition
did not emphasize or reflect the importance of com-
petitor orientation. Kohli and Jaworski (1990) defined
market orientation as the organization-wide generation
of market intelligence pertaining to current and future
customer needs, dissemination of the intelligence across
departments, and organization-wide responsiveness to
it. In their definition, Kohli and Jaworski (1990) empha-
sized the behavioral aspects and not the cultural aspects
of market orientation.
![Page 4: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/4.jpg)
100 FEATURE ARTICLE
Thunderbird International Business Review Vol. 56, No. 1 January/February 2014 DOI: 10.1002/tie
efforts to create superior products/services for their cus-
tomers, thereby satisfying the needs and wants of their
customers better than competitors.
The concept of market orientation proposed by both
Kohli and Jaworski (1990) and Narver and Slater (1990)
are similar in many ways. First, both Kohli and Jaworski
and Narver and Slater view market orientation as a con-
tinuous rather than a dichotomous variable. Second, both
concepts are similar in that they focus on obtaining and
disseminating information from customers and competi-
tors in order to achieve a sustainable competitive advan-
tage for the firm. However, Kohli and Jaworski’s concept
places greater emphasis on customers as opposed to com-
petitors. Third, both concepts emphasize the importance
of the combined efforts of all departments in responding
to customer needs. Finally, both concepts view market
orientation as a three-dimensional construct.
Nevertheless, important differences also exist between
the two concepts. For instance, Narver and Slater (1990)
explained market orientation as an organizational cul-
ture, which led to values and behaviors toward customers
and competitors with specific aims (i.e., profitability).
However, Kohli and Jaworski (1990) described market
orientation as the implementation of the marketing
concept and did not identify the cultural aspect of market
orientation (Racela et al., 2007).
Narver and Slater (1990) also reviewed the strategy
and marketing literatures and suggested that market
orientation is a form of organizational culture defining
market orientation as “the organizational culture that
most effectively and efficiently creates the necessary
behaviors for the creation of superior value for buyers
and, thus, continuous superior performance for the
business” (Narver & Slater, 1990, p. 21). As such, market
orientation as an organizational culture consists of three
components, namely, customer orientation, competitor
orientation, and interfunctional coordination (Grinstein,
2008; Hooley et al., 2003; Sin et al., 2005; Singh, 2009).
With respect to customer orientation, the heart of
market orientation is its customer focus. The customer
orientation element requires an understanding of cus-
tomers’ needs and wants in order to develop superior
products and/or services than their competitors to satisfy
customers’ needs and wants. It means that for companies
to be customer oriented, they need to find out what
customer needs and wants are both currently and in the
future, in order to create a superior value-added benefit
(Grinstein, 2008; Narver, Slater, & MacLachlan, 2004;
Singh, 2009).
As far as competitor orientation is concerned, firms
should understand and identify the short-term strengths
and weaknesses and long-term capabilities and strategies
of both current and future competitors. Employees of
every department in market-driven firms share informa-
tion about competitors, and this information can be used
to achieve a sustainable competitive advantage for the
firm (Grinstein, 2008; Frambach, Prabhu, & Verhallen,
2003; Singh, 2009). Thus, competitor orientation is
viewed as equally important as customer orientation.
In relation to interfunctional coordination, this is
where each department is recognized as being important,
regardless of whether or not it has anything to do with
the marketing function, and each department has a role
to play in customer satisfaction (Grinstein, 2008; Im &
Workman, 2004; Singh, 2009). This idea is paralleled with
the suggestion that market orientation is not marketing
orientation. In other words, a market orientation does
not view the marketing department as having the most
important role.
Customer orientation and competitor orientation
include all of the activities involved in generating market
intelligence about customers and competitors and dis-
seminating it throughout the organization (Frambach et
al., 2003; Singh, 2009). Moreover, in order to be market
oriented, it is important for all departments within the
organization to communicate information gathered from
customers and competitors and then use their combined
In relation to interfunctional coordination, this is where each department is recog-nized as being important, regardless of whether or not it has anything to do with the marketing function, and each department has a role to play in customer satisfaction.
![Page 5: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/5.jpg)
The Market Orientation–Performance Relationship: The Empirical Link in Export Ventures 101
DOI: 10.1002/tie Thunderbird International Business Review Vol. 56, No. 1 January/February 2014
change in sales, profits and change in profits) conse-
quences of a market orientation (intelligence generation,
intelligence dissemination and responsiveness) and the
potential mediating impact of the competitive, technol-
ogy, and foreign market environments. Their study found
that a positive change in export sales and profits was all
significantly related to a market orientation. Specifically,
a change in export sales and profits was significantly and
positively related to intelligence generation, responsive-
ness, and an overall market orientation. Additionally,
the impact of market orientation on export profits and a
change in export profits was stronger in technologically
turbulent environments. As a whole, their study synthe-
sized two important streams of research by establishing
an empirical relationship between market orientation
and export performance and examining the mediating
impact of the environment on export performance.
Akyol and Akehurst (2003) also studied the rela-
tionship between corporate export market orientation
and export performance variations. They examined 103
Turkish clothing exporting firms by employing Cadogan,
Diamantopoulos, and Mortanges’s (1999) measures
(export market intelligence generation, intelligence dis-
semination, and responsiveness). The results of their
study suggest that a relationship between export market
orientation and performance does exist, and in the case
of the Turkish clothing exporters, an improvement in the
export market orientation level is a significant contribu-
tor to enhanced export performance.
Finally, Singh (2009) studied the relationship between
market orientation, outsourcing, marketing capabilities,
and business performance, concluding that there were
two pathways through which market orientation and
outsourcing could build capability and enhance perfor-
mance. Singh (2009) examined 426 foreign and Indian
firms based in India by employing Narver and Slater’s
(1990) measures of market orientation (customer orienta-
tion, competitor orientation, and interfunctional coordi-
nation). The results of the Singh (2009) study suggest that
market orientation has a significant impact on business
performance when mediated by marketing capability.
As such, it is argued that a powerful way to enhance
the export marketing performance of firms is for them
to adopt a market orientation in their export operations
(Julian, 2011; Singh, 2009). Specifically, for most firms,
empirical studies indicated that higher levels of market
orientation in the firms’ export market is associated with
higher levels of performance (e.g., Akyol & Akehurst,
2003; Julian, 2011; Racela et al., 2007; Singh, 2009).
Export marketing performance has been measured,
principally, in three different ways. First, by measuring
This study adopts Narver and Slater’s (1990) notion
of market orientation for at least three primary reasons.
First, Narver and Slater’s (1990) notion of market orien-
tation separates customer orientation and competitor ori-
entation into two different constructs. As such, it enables
the impact of customer orientation and competitor orien-
tation on export marketing performance to be examined
separately, thereby enabling identification of which con-
struct has the greatest impact on performance. Second,
some researchers have suggested that Narver and Slater’s
(1990) market orientation construct has better criterion
validity and reliability than the Kohli and Jaworski (1990)
market orientation construct (e.g., Oczkowski & Farrell,
1998). Finally, other researchers have criticized the poor
conceptualization of the Kohli and Jaworski market ori-
entation construct in that it does not sufficiently capture
the notion of providing customer value (Pelham, 1997).
It is suggested here that market orientation as an
antecedent of export marketing performance seems
to have been largely overlooked by the international
marketing literature. Including market orientation as
an antecedent of performance in an export marketing
performance model, it is argued, will enhance our under-
standing of the antecedents of export marketing perfor-
mance and will make a worthy contribution to the body
of knowledge. This is because market orientation is a
proven indicator of enhanced performance in a domestic
context, but its relationship with performance in an inter-
national context is still open for debate, especially when
the investigation is conducted in a developing country
like Indonesia. In addition, knowledge of the impact of
market orientation on performance in an international
context will provide a solid foundation for the sustain-
able competitive advantage of a firm in foreign markets,
subsequently enhancing the firm’s overall performance
(Okpara, 2012; Racela et al., 2007; Singh, 2009).
As indicated earlier, most previous studies on market
orientation have been conducted on the firm’s domes-
tic operations with limited empirical research being
conducted on the impact of market orientation in an
international context, whether in relation to export ven-
tures or international joint ventures (Racela et al., 2007;
Julian, 2010). Only in the past few years have researchers
explored issues relating to market orientation in an inter-
national context (e.g., Akyol & Akehurst, 2003; Griffith et
al., 2006; Hastings & Saperstein, 2010; Julian, 2010, 2011;
Racela et al., 2007; Rose & Shoham, 2002; Singh, 2009).
For example, Rose and Shoham (2002) investigated
124 Israeli exporters from 9 industries. By employing
Jaworski and Kohli’s (1993) market orientation con-
struct, they examined the export performance (e.g., sales,
![Page 6: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/6.jpg)
102 FEATURE ARTICLE
Thunderbird International Business Review Vol. 56, No. 1 January/February 2014 DOI: 10.1002/tie
an integral part of marketing performance. Studies that
adopt this perspective often measure marketing perfor-
mance as the attainment of strategic goals, such as mar-
ket share, productivity, strategic presence in the export
market, or competitive position (Abor, 2011; Baker &
Sinkula, 2005; Griffith et al., 2006; Julian, 2010; Okpara,
2012; Sin et al., 2005).
Finally, measurement of export marketing perfor-
mance has also been undertaken via perceptual or atti-
tudinal measures. The theoretical perspective of using
this approach is that being positively disposed toward
exporting and/or satisfied with exporting operations
is a strong indication of success in exporting. Studies
adopting this perspective have measured a firm’s export
marketing performance either directly, such as perceived
success or satisfaction with the venture (O’Cass & Julian,
2003; Racela et al., 2007), or indirectly as the firm’s atti-
tude toward exporting (O’Cass & Weerawardena, 2009).
The particular theoretical perspective adopted here is
that export marketing performance is, first, measurable
at the export venture level (that is, the product/market
level). Second, it incorporates the major perspectives of
export marketing performance used in previous studies:
economic indicators, strategic indicators, and satisfac-
tion with the venture’s export marketing performance.
Finally, it is consistent with the existing export marketing
performance measures used by studies in different coun-
tries (Julian & O’Cass, 2004; Kropp et al., 2006; Racela
et al., 2007).
Given the growth in the literature on export market-
ing performance, one ponders the limited interest in
Southeast Asia given the economic growth rates of several
Southeast Asian countries over the past two decades and
the emphasis on Asia by many governments around the
world as trading opportunities. The export marketing
performance of Southeast Asian export market ventures
are an important dimension of contemporary business
because many of these markets are used for the reex-
port of products/services to third country markets. For
example, Indonesia is an important market because of
the contribution of manufactured exports to the domes-
tic economy (Indonesian Central Bureau of Statistics,
2005). In 2004, Indonesia reported that its total exports
(US$69.7 billion) contributed approximately 33.7% to
gross domestic product (GDP). The total exports con-
sisted of non–oil and gas (70.5%) and oil and gas
(29.5%). Of the non–oil and gas exports, the contribu-
tion of manufacturing, agricultural, and mining and oth-
ers were 78.5%, 11.4%, and 10.1%, respectively. In other
words, there was a significant contribution by the manu-
facturing sector to total exports and GDP (Indonesian
export marketing performance using the economic indi-
cators of performance (i.e., profit, sales, market share,
etc.). The underlying theoretical justification for using
economic indicators is that exporting is part of a firm’s
marketing program and performance should be mea-
sured in the same way that marketing operations are
measured, in economic or financial terms (Kropp et al.,
2006). Studies adopting such measures of export market-
ing performance have used indicators such as export sales
(Weerawardena, O’Cass, & Julian, 2006), export sales
growth (Julian, 2003; Okpara, 2012; Singh, 2009), export
profits (Abor, 2011; Owusu-Frimpong, & Mmieh, 2007;
Singh, 2009), and export/sales ratio (Guan & Ma, 2003;
Julian & O’Cass, 2004).
Second, measurement of export marketing per-
formance has also been via strategic outcomes, that is,
expand strategically into foreign markets, gain a foothold
in the export market, or simply increase the awareness
of the product/company. The underlying theoretical
justification here is that firms have a set of strategic goals
as well as economic goals in exporting (Julian & O’Cass,
2004). This theoretical perspective suggests that the
attainment of strategic goals such as improved competi-
tiveness, increased market share, increased productivity,
or strengthened strategic position should be considered
The underlying theoreti-cal justification for using economic indicators is that exporting is part of a firm’s marketing program and performance should be mea-sured in the same way that marketing operations are measured, in economic or financial terms.
![Page 7: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/7.jpg)
The Market Orientation–Performance Relationship: The Empirical Link in Export Ventures 103
DOI: 10.1002/tie Thunderbird International Business Review Vol. 56, No. 1 January/February 2014
research (Kaynak & Kuan, 1993) with sample sizes of 53
being reported (Mintu-Wimsatt & Calantone, 2000). A
response rate of 12.4% also compares favorably with the
response rates of McDougall et al. (1994) with 11%; Zairi
and Sinclair (1995) with 13%; and Koch and McGrath
(1996) with 6.5%. Considering that the sample was drawn
from a developing country where the first language is not
English, and where many of the respondents’ primary
language is not English, the response rate is even more
acceptable. Every possible mechanism was incorporated
into the study’s methodology to ensure a higher response
rate, and 12.4% was the maximum response rate possible.
Finally, it is acknowledged that US- based mail surveys
achieve a higher response rate; however, according to
Churchill (1987), a response rate above 10% is accept-
able for mail surveys.
The questionnaire and covering letter were translated
into Bahasa Indonesia and then back-translated into Eng-
lish. The use of only two languages reduced the potential
for errors resulting from multiple translations of the
questionnaire. Minimizing the diversity of languages also
helped ensure construct equivalence and data compara-
bility (Johnson, Cullen, Sakano, & Bronson, 2001).
To reach the most knowledgeable key informants,
the questionnaire was directed to the managing director
of the export venture. From the results of the pretest, it
was expected that the managing director as chief execu-
tive officer (CEO) would be the person most knowledge-
able about market orientation and the export venture’s
marketing performance.
The instrument contained items identified by the
literature intended to measure market orientation and
export marketing performance (Narver & Slater, 1990;
Singh, 2009; Zou et al., 1998). The measure of market
orientation was adapted from Narver and Slater (1990).
In their conceptualization, Narver and Slater identified
market orientation as a three-dimensional construct con-
sisting of, namely, customer orientation, competitor ori-
entation, and interfunctional coordination. This study’s
measure of market orientation comprised 14 items, with 6
items measuring customer orientation, 4 items measuring
competitor orientation, and 4 items measuring interfunc-
tional coordination.
Customer Orientation
Statements were included in the questionnaire to mea-
sure customer orientation. All items were adapted from
Narver and Slater (1990). These included the extent to
which the firm was driven by customer needs and satis-
faction, the extent to which the firm frequently assesses
their commitment in serving export customer’s needs,
Central Bureau of Statistics, 2005), even though the con-
tribution of the manufacturing industry to total exports
seemed to decrease during the 2002 to 2004 period, while
still making a substantial contribution. This contribution
by the manufacturing sector to the growth in exports and
overall GDP provides an ideal environment in which to
study the export marketing performance of export mar-
ket ventures in the manufacturing sector in a developing-
country context.
Furthermore, according to Pangestu (2004), foreign
competitors, marketing problems, and bureaucracy were
the main factors that contributed to a decline in the
overall performance of the Indonesian export sector.
In addition, Soewandi (2003) suggested that successful
Indonesian exporters should emphasize product quality,
pricing, promotion, and customer satisfaction such as on-
time delivery for enhanced performance. However, these
suggestions were all anecdotal, indicating a need to insti-
gate a study that investigates the significant determinants
of export marketing performance in the Indonesian
manufacturing sector. As a result, this study examines the
marketing performance of export ventures in an Asian
developing-country context and the significance of a
market orientation.
Research Design
This study was based on an empirical investigation of
manufacturing firms that were involved in exporting to
foreign countries from Indonesia. The sample of firms
came from a wide cross-section of companies from the
manufacturing sector and was provided by the Indo-
nesian Manufacturing Industry Directory. In order to
obtain valid and reliable measures of the variables, previ-
ously validated scales were used to measure all variables
(Narver & Slater, 1990; Singh, 2009; Zou, Taylor, &
Osland, 1998). All items were measured via 5-point bipo-
lar scales with scale poles ranging from strongly disagree
(1) to strongly agree (5).
The questionnaire was developed and pretested
using a small sample of exporters, with the final instru-
ment in English and a Bahasa equivalent with a cover-
ing letter and instructions that was mailed to a stratified
random sample that included 877 firms who were a
priori identified as being involved in direct export-
ing, yielding 109 usable questionnaires’ being returned,
accounting for an effective response rate of 12.4% and
considered to be acceptable. This response rate is normal
for most mail surveys (Groves, 1990; McDougall, Covin,
Robinson, & Herron, 1994). Also, similar response rates
have been reported in prior international marketing
![Page 8: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/8.jpg)
104 FEATURE ARTICLE
Thunderbird International Business Review Vol. 56, No. 1 January/February 2014 DOI: 10.1002/tie
differences were identified between the sample and the
target population for this classification variable. There-
fore, as the results suggest that there were no significant
differences between respondents and nonrespondents,
the sample can be considered sufficient to draw conclu-
sions about Indonesian export ventures for the issues
under study.
Next, some descriptive statistics of the sample is
provided. A profile of the Indonesian manufacturing
exporting firms participating in the study is presented in
Table 1. The major export market for the participating
Indonesian export firms was advanced developed coun-
tries such as the United States (24.8%), Japan (21.1%),
Germany (9.2%), and Australia (6.4%). A large percent-
age of the participating firms were in the textile and
apparel sectors (39.4%). In terms of international busi-
ness experience, slightly less than half of the firms were
relatively new to exporting, with six years’ or less export
experience (45.0%). The majority of the participating
the extent to which competitive advantage is based on the
understanding of export customers’ needs, the extent to
which strategies are driven by increasing export customer
value, the extent to which the firm measures export
customer’s satisfaction systematically, and the extent
to which the firm provides close attention to after-sales
service.
Competitor Orientation
Statements were included in the questionnaire to mea-
sure competitor orientation. All items were adapted from
Narver and Slater (1990). These included the extent to
which the firm responds rapidly to competitor’s actions
that threaten them, the extent to which management
regularly shares information about competitor’s strate-
gies, the extent to which management regularly discusses
competitor’s strengths and weaknesses with all company
units, and the extent to which the firm targets export
customers to achieve a competitive advantage.
Interfunctional Coordination
Statements were included in the questionnaire to mea-
sure interfunctional coordination. All items were adapted
from Narver and Slater (1990). These included the
extent to which customer information is communicated
between all the firm’s units, the extent to which internal
firm functions are integrated to serve customer needs,
the extent to which the firm’s units understand how
employees create export customer value, and the extent
to which resources are shared among the firm’s units.
Export Marketing Performance
Export marketing performance was measured via the use
of economic indicators, strategic indicators, and overall
satisfaction with performance. As a result, this study used
a composite measure of export marketing performance
that incorporated all three measures of export marketing
performance (Zou et al., 1998).
Data Analysis
Prior to analyzing the primary data, the issue of nonre-
sponse bias is discussed. An “extrapolation procedure”
technique was used to assess nonresponse bias. This
assumes that the groupings of actual respondents by an
identified criterion are similar to the “theoretical” non-
respondents (Armstrong & Overton, 1977). Frequencies
and independent t-tests were used to determine whether
significant differences existed between the sample of 109
Indonesian export ventures and the target population of
877, based on their industry classification. No significant
TABLE 1 The Profi le of Participating Indonesian Export+ Firms (n = 109)
Demographic Categories Frequency (%)
Number of full-time employees
Large Firm (more than 150)SMEs (150 and below)
6247
56.943.1
Export mode Direct to customer (distributor)Through foreign company based in SingaporeThrough foreign company based in IndonesiaThrough local Indonesian trading companyThrough own subsidiary company overseas
3928
23
16
3
35.825.7
21.1
14.7
2.7
Export experience
Experienced Exporter (more than 6 years)New exporter (6 years or less)
60
49
55.0
45.0
Industry category
Textile and ApparelWood and FurnitureFood, Beverages, and TobaccoPaper and PrintingRubber, Plastics, and ChemicalMachinery and Equipment
431915111110
39.417.413.810.110.1 9.2
Export destination
United StatesJapanSingaporeMalaysiaGermanyKoreaAustraliaChina
2723201010775
24.821.118.39.29.26.46.44.6
![Page 9: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/9.jpg)
The Market Orientation–Performance Relationship: The Empirical Link in Export Ventures 105
DOI: 10.1002/tie Thunderbird International Business Review Vol. 56, No. 1 January/February 2014
the variation in the export marketing performance of
Indonesian export market ventures as explanatory vari-
ables when measured by a composite measure of export
marketing performance that included satisfaction with
performance, economic indicators, and the achieve-
ment of strategic objectives as explanatory variables. The
results also show that all three dimensions of market ori-
entation—customer orientation, competitor orientation,
and interfunctional coordination (which is approaching
significance)—have a significant influence on the export
marketing performance of Indonesian export market
ventures.
Discussion
The relationship between market orientation and firm
performance can best be described as the ability of
market-oriented firms to understand and satisfy custom-
ers’ needs and wants in order to create a sustainable com-
petitive advantage (Ellis, 2006). In other words, firms that
know what their customers’ needs and wants are, both
companies could be categorized as large firms (56.9%)
with 150 or more full-time employees. With regard to for-
eign market distribution, the majority of the participating
Indonesian export firms exported directly to the distribu-
tor in the importing country (35.8%) or via a foreign
trading company based in Singapore (25.7%) or Indone-
sia (21.1%) as an intermediary. Approximately 14.7% of
the participating Indonesian export firms utilized a local
Indonesian trading company, and the remaining 2.8%
utilized their own international subsidiary.
The data were initially analyzed using confirmatory
factor analysis to assess the psychometric properties of
the instrument. Our primary concern was interpretability
of the factors. The dimensions of market orientation,
namely, customer orientation, competitor orientation,
and interfunctional coordination, all loaded appropri-
ately and no cross-loadings above 0.2 were identified,
with only factor loadings of above 0.5 being accepted (see
Table 2). The final reliabilities for all scales were greater
than 0.70. The preliminary results indicated that the
psychometric properties of the scales were acceptable,
and as such it was appropriate to examine the relation-
ship between market orientation and export marketing
performance.
A multiple regression analysis was then conducted
to examine the relationship between export marketing
performance as a dependent variable and the three
different dimensions of market orientation (Table 3).
The analysis resulted in an R2 = 0.268 suggesting that
the three different dimensions of market orientation,
namely, customer orientation, competitor orientation,
and interfunctional coordination explained 26.8% of
TABLE 2 Summary of Confi rmatory Factor Analysis
Factor/Statement Name Cronbach’s Alpha Dominant Statements Factor Loadings
Factor 1Customer orientation
0.93 Competitive advantage is based on the understanding of export customer needs.Frequently assess commitment in serving export customer needs.Measure our export customers’ satisfaction systematically.Driven by export customer needs and satisfaction.Strategies are driven by increasing export customer value.Close attention to after-sales service.
0.880.860.840.830.820.80
Factor 2Competitor orientation
0.89 Respond rapidly to our export competitors’ actions that threaten us.Target export customers for achieving competitive advantage.Regularly discuss our export competitors’ strengths and weaknesses with all company units.Regularly share information about export competitors’ strategies.
0.910.840.82
0.73
Factor 3Interfunctional coordination
0.92 We do share resources among our fi rm’s units.All of our fi rm units understand how employees create export customer value.Our internal fi rm functions are integrated to serve well the export customer needs.Free communication about export customer information among all our fi rm’s units.
0.900.890.890.87
TABLE 3 Multiple Regression Analysis
Variable Alpha Coefficient T-Statistic Sig T
Customer orientation 0.93 0.262 2.587 0.011**
Competitor orientation 0.89 0.239 2.319 0.022**
Interfunctional coordination 0.92 0.177 1.982 0.050*
R2 = 0.268; n = 109; df = 7.*p < 0.10.**p < 0.05.
![Page 10: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/10.jpg)
106 FEATURE ARTICLE
Thunderbird International Business Review Vol. 56, No. 1 January/February 2014 DOI: 10.1002/tie
customer orientation, competitor orientation, and inter-
functional coordination. Each of the three dimensions of
market orientation influences export marketing perfor-
mance significantly and positively. Customer orientation
as a predictor variable is the strongest predictor of overall
export marketing performance for the Indonesian export
market ventures. This is followed by competitor orienta-
tion, and interfunctional coordination. It is important for
the management of Indonesian export market ventures to
be aware of these findings for export marketing success.
Therefore, for higher export marketing performance in
their export ventures, the management of Indonesian
export market ventures need to have a dedicated focus
on customer orientation. In other words, the higher the
firms’ customer orientation, the higher their export mar-
keting performance. The logic behind this contention is
that customer-oriented firms will have greater knowledge
of their customers’ needs and wants, and this knowledge
will enable management to better position the firm with
respect to its competitors, thereby yielding better market-
ing performance.
With respect to competitor orientation, the results
of this study suggest that competitor orientation signifi-
cantly and positively influences overall export market-
ing performance. This finding further suggests that the
higher the Indonesian export market venture’s competi-
tor orientation is, the higher its overall export marketing
performance will be. This is completely understandable
because competitor-oriented firms are aware of the
strengths and weaknesses of their competitors as well as
their long-term capabilities and strategies. Therefore, by
understanding future and current competitors’ strengths
and weaknesses, the firm is able to undertake relevant
actions to better position its products and services,
thereby creating superior value for its customers more
so than its competitors. This finding is also consistent
with previous research in a domestic context (Grinstein,
2008).
Finally, interfunctional coordination also signifi-
cantly and positively impacts overall export marketing
performance. This finding suggests that the higher the
Indonesian export market ventures’ interdepartmental
and interfunctional coordination is, the higher their
overall export marketing performance will be. Firms col-
lect information about their customers and competitors
and disseminate this information to different depart-
ments and for different functions in response to custom-
ers’ needs and wants. The efficiency with which such a
process is conducted makes a significant contribution
to the Indonesian export market ventures’ overall high
export marketing performance.
currently and in the future, are able to develop long-term
strategies that maximize the firm’s strengths and mini-
mize its weaknesses, enabling the firm to take advantage
of existing opportunities and minimize potential and cur-
rent competitor threats, thereby creating superior value
for customers and stakeholders alike. Such a strategic
process is the means by which firms can achieve a sustain-
able competitive advantage.
Market orientation has been theorized to have a sig-
nificant and positive effect on overall export marketing
performance. The results of this study confirm that a long-
term competitive advantage and superior performance
can be achieved by being equipped to respond to current
and future market needs (Grinstein, 2008; Singh, 2009).
This finding suggests that market orientation is a necessary
ingredient for successful export marketing performance.
The impact of market orientation on export marketing per-
formance in the Indonesian export market ventures is con-
sistent with previous research (Julian, 2011; Singh, 2009).
The findings of this study suggest that market ori-
entation is a three-dimensional construct consisting of
Market orientation has been theorized to have a signifi-cant and positive effect on overall export marketing performance. The results of this study confirm that a long-term competitive advantage and superior performance can be achieved by being equipped to respond to current and future market needs.
![Page 11: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/11.jpg)
The Market Orientation–Performance Relationship: The Empirical Link in Export Ventures 107
DOI: 10.1002/tie Thunderbird International Business Review Vol. 56, No. 1 January/February 2014
in a unified manner in order to create superior value for
their customers. To achieve this, export venture manage-
ment should encourage free and open communication
about their customers throughout all of the venture’s units;
have internal functions that are integrated, with their over-
all objective being to better serve customer needs; under-
stand how employees create export customer value; and
share resources among the export venture’s different units.
Conclusion
The present study has extended the literature on export
marketing performance and market orientation in sev-
eral areas. First, the results of this study suggest that
the construct of market orientation is three-dimen-
sional, namely, customer orientation, competitor orien-
tation, and interfunctional coordination, with all three
dimensions being significant predictors of overall export
marketing performance when measured by economic
indicators, strategic indicators, and a perceptual measure
of performance in the context of Indonesian export mar-
ket ventures. This finding supports much of the previous
strategic marketing and strategic management literature
(Grinstein, 2008; Singh, 2009) and is not surprising
given that market-oriented firms create superior value
for customers, enabling the firms to achieve a sustainable
competitive advantage, which in turn produces superior
performance. Second, the constructs developed here can
serve as a foundation for further research into export
marketing. Third, the study has contributed to a more
comprehensive understanding of the success factors in
export marketing, with empirical evidence being fur-
nished that market orientation is a key success factor in
export marketing and should be included in multivariate
models of export marketing performance (e.g., Singh,
2009). Finally, the study provides empirical evidence of
the impact of market orientation on export marketing
performance in a developing-country context, of which
there was a substantial void in the literature. As a result,
the study’s findings provide empirical support for the
notion that issues affecting export marketing success in
a developed-country context are also applicable to the
developing countries of Southeast Asia. Such a finding
will enable comparison of findings from a developed-
country versus a developing-country perspective.
Limitations and Directions for Future Research
Prior to discussing the directions for future research, some
of the study’s limitations are noted. One of the limitations
Managerial Implications
The findings of this study should identify for manag-
ers of export market ventures generally but, especially
in the Indonesian and developing-country context the
importance of market orientation, as a driver of export
marketing performance. The study findings indicate that
better export venture performance can be achieved for
export ventures through the implementation of a mar-
ket orientation. As a result, managers of export ventures
will be encouraged to allocate substantial resources in
the development and implementation of a market ori-
entation for their export ventures. In the development
and implementation of a market orientation for the
management of export ventures, there are three factors
that require careful consideration. First, export venture
managers need to gather continuous information about
their export customers’ needs and wants, both currently
and in the future. Furthermore, in order to be able to
understand what their customers’ needs and wants are,
exporting firms should be driven by their customers’
needs and wants and the satisfaction of those needs and
wants; the management of export ventures should fre-
quently assess their commitment to serving those needs
and wants; management should also derive a competitive
advantage that is based on the understanding of their
customers’ needs and wants; and the focus for all export
management should be on increasing export customer
value. Furthermore, export management should mea-
sure export customers’ satisfaction systematically and pay
close attention to after-sales service. These ingredients
of customer orientation highlight the significance of the
human factor in international marketing and the impor-
tance of the relationship between customers and export
venture management for successful export marketing
performance (e.g., Czinkota & Samli, 2010).
Second, managers of export ventures must be able
to understand and identify the short-term strengths and
weaknesses and long-term capabilities and strategies of
both current and future competitors. In order to develop
these inherent abilities, export venture managers should
respond rapidly to competitors’ actions that threaten
them; they should regularly share information about
competitors’ strategies; they should regularly discuss com-
petitors’ strengths and weaknesses with all company units;
and they should specifically target export customers in
order to achieve a sustainable competitive advantage.
Finally, export venture managers must disseminate
and respond to the collected information about customers’
needs and wants together with information on competitors’
strengths and weaknesses, both currently and in the future,
![Page 12: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/12.jpg)
108 FEATURE ARTICLE
Thunderbird International Business Review Vol. 56, No. 1 January/February 2014 DOI: 10.1002/tie
evaluate the impact of market orientation in export mar-
keting. Future research should also replicate this study in
another developing country of Southeast Asia (e.g., Thai-
land) to see if the findings of this study can be validated
using another developing country as a sampling frame.
From a methodological perspective, a potential con-
cern might be that all measures are self-reported. While
regression modeling is a robust technique, future research
could utilize multiple means by which to measure the
variables in order to reduce common method variance.
Efforts were made in this study to minimize the problem
by pretesting the instrument and selecting measures that
minimize item overlap. While utmost care was taken in
the development and administration of the instrument,
respondents still might not interpret all questionnaire
items uniformly. Also, executives who were not fluent in
English may have been responsible for some self-selection
of returns, which could have been a source of some sample
bias. The sample size was also smaller than desirable.
Future research should replicate the study with a larger
sample. Finally, a replication of this study should examine
whether the relationships between the variables still would
hold true on an industry-by-industry basis. For example, it
may be worth considering the category of companies by
consumer goods and business-to-business operations, as the
scales may be more consumer company oriented in nature.
of this study is its cross-sectional design. The results from
this investigation should be considered in this light.
Taking this study as a point of departure, longitudinal
research is encouraged to examine the effect of market
orientation on export marketing performance over time.
As such, future research should continue to monitor and
While regression modeling is a robust technique, future research could utilize multi-ple means by which to mea-sure the variables in order to reduce common method variance.
Craig C. Julian, PhD, is a senior lecturer in marketing in the Southern Cross Business School at Southern Cross University in Coolangatta, Queensland. He has won competitive research grants, including a prestigious large ARC Discovery Grant, and has over 130 publications. His work has appeared in quality international journals such as the European Journal of Marketing, Journal of Small Business Management, Journal of Macromarketing, Journal of Business Research, and many others. His primary research interests are aligned to the international marketing discipline and include strategic alliances, international joint ventures, and export marketing.
Osman Mohamad, PhD, started his career in 1985 as a lecturer at Universiti Sains Malaysia (USM) and subse-quently earned a PhD at the University of Strathclyde in 1994. He lectures in marketing subjects at the Graduate
School of Business, USM. His research interests include internationalization of fi rms and marketing-related topics.
He has published in the Journal of Business Research, Multinational Business Review, Journal of Product and Brand Management, International Journal of E-Business Research, and Journal of Transnational Management, to name a few. To date, 20 PhD and 6 DBA students have graduated under his supervision.
Zafar U. Ahmed, PhD, is currently serving as a professor of marketing and international business at the Lebanese
American University in Beirut, Lebanon. He has well over 10 years’ industry experience earned across Africa as an exporter and global entrepreneur and 20 years’ academic experience to his credit, accumulated at six different
universities across the United States. He has more than 140 world-class scholarly publications to his credit, has organized and presided over more than 10 global conferences, serves on the editorial review board of more than
10 journals, and serves as the founding president/CEO of the Academy of Global Business Advancement.
![Page 13: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/13.jpg)
The Market Orientation–Performance Relationship: The Empirical Link in Export Ventures 109
DOI: 10.1002/tie Thunderbird International Business Review Vol. 56, No. 1 January/February 2014
References
Aaby, N., & Slater, S. F. (1989). Management influences on export per-formance: A review of the empirical literature 1978–1988. International Marketing Review, 6(4), 7–26.
Abor, J. (2011). Do export status and export intensity increase firm performance? Thunderbird International Business Review, 53(1), 9–18.
Akyol, A., & Akehurst, G. (2003). An investigation of export perfor-mance variations related to corporate export market orientation. Euro-pean Business Review, 15(1), 5–19.
Armstrong, J. S., & Overton, T. S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing Research, 14, 396–402.
Baker, W. E., & Sinkula, J. M. (2005). Market orientation and the new product paradox. Journal of Product Innovation Management, 22, 483–502.
Cadogan, J. W., & Cui, C. C. (2004). Chinese export agents’ adoption of export market-oriented behaviors: Measurement and performance relationship. Journal of Asia Pacific Marketing, 3(2), 21–37.
Cadogan, J. W., Cui, C. C., & Li, E. K. Y. (2003). Export market-oriented behavior and export performance: The moderating roles of competi-tive intensity and technological turbulence. International Marketing Review, 20, 493–513.
Cadogan, J. W., Cui, C. C., Morgan, R. E., & Story, V. M. (2005). Factors facilitating and impeding the development of export market-oriented behavior: A study of Hong Kong manufacturing exporters. Interna-tional Marketing Review, 20(5), 1–39.
Cadogan, J. W., Diamantopoulos, A., & Mortanges, C. P. (1999). A mea-sure of export market orientation: Scale development and cross-cultural validation. Journal of International Business Studies, 30, 689–707.
Cadogan, J. W., Diamantopoulos, A., & Siguw, J. A. (2002). Export market-oriented activities: Their antecedents and performance con-sequences. Journal of International Business Studies, 33(3), 615–626.
Calantone, R. J., Kim, D., Schmidt, J. B., & Cavusgil, S. T. (2006). The influence of internal and external firm factors on international product adaptation strategy and export performance: A three country compari-son. Journal of Business Research, 59(2), 176–185.
Cavusgil, S. T., & Zou, S. (1994). Marketing strategy-performance relationship: An investigation of the empirical link in export market ventures. Journal of Marketing, 58(1), 1–21.
Churchill, G. A., Jr. (1987). Marketing research: Methodological foun-dations (4th ed.). Chicago, IL: Dryden Press.
Czinkota, M. R., & Samli, A. C. (2010). The people dimension in modern international marketing: Neglected but critical. Thunderbird International Business Review, 52, 391–401.
Deshpande, R., & Farley, J. U. (1998). Measuring market orientation: Generalization and synthesis. Journal of Market Focused Management, 2, 213–232.
Deshpande, R., & Farley, J. U. (2004). Organizational culture, market orientation, innovativeness, and firm performance: An international research odyssey. International Journal of Research in Marketing, 21(1), 3–22.
Dhanaraj, C., & Beamish, P. W. (2003). A resource-based approach to the study of export performance. Journal of Small Business Manage-ment, 41, 242–261.
Ellis, P. (2006). Market orientation and performance: A meta-analysis and cross-national comparisons. Journal of Management Studies, 43, 1089–1107.
Frambach, R., Prabhu, J., & Verhallen, T. (2003). The influence of busi-ness strategy on new product activity: The role of market orientation. International Journal of Research in Marketing, 20, 377–397.
Griffith, D. A., Jacobs, L., & Richey, R. G. (2006). Fitting strategy derived from strategic orientation to international contexts. Thunderbird Inter-national Business Review, 48(2), 239–262.
Grinstein, A. (2008). The effect of market orientation and its com-ponents on innovation consequences: A meta-analysis. Journal of the Academy of Marketing Science, 36(2), 166–173.
Groves, R. M. (1990). Survey errors and survey costs. New York, NY: Wiley.
Guan, J., & Ma, N. (2003). Innovative capability and export perfor-mance of Chinese firms. Technovation, 23, 737–747.
Hastings, H., & Saperstein, J. (2010). How Cisco creates new value via global customer service. Thunderbird International Business Review, 52(5), 419–427.
Hooley, G., Fahy, J., Greenley, G., Beracs, J., Fonfara, K., & Snoj, B. (2003). Market orientation in the service sector of the transition econo-mies of Central Europe. European Journal of Marketing, 37(1), 86–106.
Im, S., & Workman, J. (2004). Market orientation, creativity, and new product performance in high-technology firms. Journal of Marketing, 68, 114–132.
Indonesian Central Bureau of Statistics. (2005). Manufacturing Industry Directory, Government of Indonesia, Jakarta.
Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57, 53–70.
Johnson, J. L., Cullen, J. B., Sakano, T., & Bronson, J. W. (2001). Driv-ers and outcomes of parent company intervention in IJV management: A cross-cultural comparison. Journal of Business Research, 52, 35–49.
Julian C. C. (2003). Export marketing performance: A study of Thailand firms. Journal of Small Business Management, 41, 213–221.
Julian, C. C. (2010). The market orientation–marketing performance relationship: The empirical link in international joint ventures. Interna-tional Journal of Trade and Global Markets, 3, 414–431.
Julian, C. C. (2011). Discriminant analysis of antecedents of perfor-mance in international marketing: A study of Australian exporting com-panies. Journal of International Marketing and Exporting, 16(1), 1–25.
Julian, C. C., & O’Cass, A. (2004). The antecedents of export marketing performance: An Australian perspective. Journal of Asia Pacific Market-ing, 3(2/3), 99–113.
Kaynak, E., & Kuan, W. (1993). Environment, strategy, structure and performance in the context of export activity: An empirical study of Taiwanese manufacturing firms. Journal of Business Research, 27, 33–49.
Kirca, A. H., Jayachandra, S., & Bearden, W. O. (2005). Market orien-tation: A meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing, 69, 24–41.
Koch, M. J., & McGrath, R. G. (1996). Improving labour productivity: Human resource management policies do matter. Strategic Manage-ment Journal, 17, 335–354.
Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: The construct, research propositions and managerial implications. Journal of Market-ing, 54, 1–18.
Kotler, P., Adam, S., Brown, L., & Armstrong, G. (2008). Principles of marketing (4th ed.). Sydney, Australia: Prentice Hall.
Kropp, F., Lindsay, N. J., & Shoham, A. (2006). Entrepreneurial, market, and learning orientations and international entrepreneurial
S. Sefnedi, PhD, is a senior lecturer in marketing at Bung Hatta University in Indonesia. He completed his PhD at
the University Sains Malaysia (USM) in 2007. At Bung Hatta University, he teaches master’s degree courses on
marketing management and consumer behavior, and lectures in executive programs on those topics. His research
interests are in the areas of international marketing and consumer behavior.
![Page 14: Julian Et Al-2014-Thunderbird International Business Review](https://reader034.vdocument.in/reader034/viewer/2022051002/5695d2841a28ab9b029aba2c/html5/thumbnails/14.jpg)
110 FEATURE ARTICLE
Thunderbird International Business Review Vol. 56, No. 1 January/February 2014 DOI: 10.1002/tie
Owusu-Frimpong, N., & Mmieh, F. (2007). An evaluation of the percep-tions and marketing practices of nontraditional exporters in Ghana. Thunderbird International Business Review, 49(1), 57–76.
Pangestu, M. (2004). Tantangan membangkitkan daya saing Indonesia dan sector ril. Economic Review Journal, 198, 1–6.
Pelham, A. M. (1997), Mediating influences on the relationship between market orientation and profitability in small industrial firms. Journal of Marketing Theory and Practice, 5(3), 55–76.
Racela, O., Chaikittisilpa, C., & Thoumrungroje, A. (2007). Market orientation, international business relationships and perceived export performance. International Marketing Review, 24(2), 144–163.
Rose, G. M., & Shoham, A. (2002). Export performance and market ori-entation: Establishing an empirical link. Journal of Business Research, 55, 217–225.
Sin, L. Y. M., Tse, A. C. B., Yau, O. H. M., Chow, R. P. M., & Lee, J. S. Y. (2005). Market orientation, relationship market orientation, and busi-ness performance: The moderating effects of economic ideology and industry type. Journal of International Marketing, 13(1), 36–57.
Singh, S. (2009). How market orientation and outsourcing create capa-bility and impact business performance. Thunderbird International Business Review, 51, 457–471.
Soewandi, R. (2003). Strategi jitu mendongkrak ekspor. Beinews, 17, 28–29.
Weerawardena, J., O’Cass, A., & Julian, C. C. (2006). Does industry matter? Examining the role of industry structure and organizational learning in innovation and brand performance. Journal of Business Research, 59, 37–45.
Zairi, M., & Sinclair, D. (1995). Business process re-engineering and process management: A survey of current practice and future trends in integrated management. Business Process Re-Engineering and Manage-ment Journal, 1(1), 8–30.
Zou, S., Taylor, C., & Osland, G. (1998). The EXPERF Scale: A cross-national generalized export performance measure. Journal of Interna-tional Marketing, 6, 37–58.
business venture performance in South African firms. International Marketing Review, 23, 504–523.
Kyriakopoulos, K., & Moorman, C. (2004). Tradeoffs in marketing exploitation and exploration strategies: The overlooked role of market orientation. International Journal of Research in Marketing, 21(3), 219–240.
McDougall, P. P., Covin, J. G., Robinson, R. B., & Herron, L. (1994). The effects of industry growth and strategic breadth on new venture performance and strategy content. Strategic Management Journal, 15, 537–554.
Mintu-Wimsatt, A., & Calantone, R. (2000). Crossing the border: Test-ing a negotiation model among Canadian exporters. Journal of Business & Industrial Marketing, 15, 340–353.
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20–35.
Narver, J. C., Slater, S. F., & MacLachlan, D. (2004). Responsive and pro-active market orientation and new product success. Journal of Product Innovation Management, 21, 334–344.
O’Cass, A., & Julian, C. C. (2003). Examining firm and environmental influences on export marketing mix strategy and export performance of Australian exporters. European Journal of Marketing, 37(3/4), 366–384.
O’Cass, A., & Weerawardena, J. (2009). Examining the role of interna-tional entrepreneurship, innovation and international market perfor-mance in SME internationalization. European Journal of Marketing, 43, 1325–1348.
Oczkowski, E., & Farrell, M. A. (1998). Discriminating between mea-surement scales using non-parametric tests and two stage least squares estimators: The case of market orientation. International Journal of Research in Marketing, 15(4), 349–366.
Okpara, J. O. (2012). An exploratory study of international strategic choices for exporting firms in Nigeria. Thunderbird International Busi-ness Review, 54(4), 479–491.