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 journalArticlepeer-review

38 Scopus citations

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 (US)
Pages (from-to)407-418
Number of pages12
JournalJournal of Services Marketing
Volume13
DOIs
StatePublished - Aug 1 1999
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Marketing

Keywords

  • Cost effectiveness
  • Distribution channels
  • Market orientation
  • Motor industry
  • Operating performance

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