The effects of market orientation on effectiveness and efficiency: the case of automotive distribution channels in Finland and Poland

Tung‐zong Chang, Rajiv Mehta, Su‐Jane Chen, Pia Polsa, Jolanta Mazur

Research output: Contribution to journalArticleScientificpeer-review

36 Citations (Scopus)

Abstract

Explores the effect of market orientation on operating effectiveness and cost efficiency using data drawn from automotive distribution channels in Finland and Poland. The results indicate that market orientation is positively associated with measures of effectiveness such as service quality and overall customer service level. Market orientation also has a positive influence on measures of cost efficiency, such as productivity and sales per employee. In addition, profitability measures were highly associated with operating effectiveness and cost efficiency. Additional analysis suggests that market orientation has a greater effect on operating effectiveness, such as service quality, in Poland, a less‐developed country, than in Finland, a more‐developed country. Based on the findings, important managerial and research implications are proferred.
Original languageEnglish
Peer-reviewed scientific journalJournal of Services Marketing
Volume13
Issue number4/5
Pages (from-to)407-418
ISSN0887-6045
DOIs
Publication statusPublished - 01.08.1999
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Market orientation
  • Operating performance
  • Cost effectiveness
  • Distribution channels
  • Motor industry

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