A Synthesis Model of Market Orientation for a Developing Country - The Case of Bangladesh

Despite the substantial importance of the marketing concept and its implementation in the modern business arena extensive research has not been undertaken in developing countries. Market orientation models have only been developed and tested for developed countries. This need for a market orientation model that is applicable to developing countries underlies the principal purpose of this research to develop a synthesis model of market orientation and test it in a developing country. For this purpose, the researcher revisited the five leading market orientation perspectives including decision-making perspective (Shapiro, 1988), market intelligence perspective (Kohli and Jaworski, 1990), culturally based behavioural perspective (Narver and Slater, 1990), strategic perspective (Ruekert, 1992) and customer orientation perspective (Deshpande et al., 1993). Two synthesis issues, initial and vital, were identified from the five different perspectives that embodied the synthesis model of market orientation. The vital issues of the synthesis market orientation model were identified from the large body of literature, and a conceptual framework of market orientation was proposed. The conceptual framework considered internal and external factors as antecedents or determinants, and economic and non-economic performance as consequences, of market orientation and its four components (customer emphasis, intelligence/information generation, intelligence dissemination or interfunctional coordination and intelligence responsiveness or taking action). This framework was then tested in order to identify the linkage between market orientation and its antecedents and consequences. Such efforts have been observed in the previous market orientation literature but this study is different from those of the previous studies on several grounds. Firstly, this study was done on a new dimension of market orientation, the synthesis dimension. Secondly, this study considered external factors as antecedents of market orientation along with internal organisational antecedents. Thirdly, this study considered both the economic and non-economic performance measures as consequences of market orientation. Finally, this study was done on a developing country market (Bangladesh) where no market orientation study has yet been carried out. Both quantitative and qualitative research methods were used to arrive at a valid and convergent conclusion about the market orientation and its relationships with antecedents and consequences. For this purpose, quantitative survey data were obtained from high officials of both marketing and non-marketing departments of the consumer goods manufacturing companies in Bangladesh. A total number of 120 companies participated. Two interviews from each company were undertaken and 216 usable questionnaires were received. Ten companies were selected for a qualitative case study and in-depth interviews were conducted with the chief executive officer (CEO), or with a designated high official assigned by the CEO, for each company. Hypotheses of the study were tested using stepwise regression analysis and multivariate analysis of variance (MANOVA). Inductive reasoning technique was used for coding and categorising the qualitative data, and the case study method was used for presenting the research results. The findings of the study supported the hypotheses of the study and confirmed the applicability of the proposed market orientation framework. The findings of the study indicated that the market orientation of the consumer goods manufacturing companies in Bangladesh is determined by seven internal (top management emphasis, management training, centralisation, political behaviour, market based reward system, interdepartmental conflict, and interdepartmental connectedness) and three external antecedents/factors (competition, market turbulence, and general economy). The study also identified a significant effect of market orientation on both the economic and non-economic performance of business. The findings of this study are mostly consistent with the previous market orientation studies undertaken in developed countries. At the final stage, the first synthesis model of market orientation for a developing country, Bangladesh, was offered on the basis of the findings of this study. This first synthesis model of market orientation for a developing country, that confirms the extended form of the vital issues, is still to be established as a generic model. Therefore, in order to verify its generic application, it is hoped that this model will be used as a starting point for further studies and be tested in other countries in the world, both developed and developing.