JOURNAL ARTICLE

REVIEW

PERFORMANCE.

ORIENTATION,
CAPABILITIES,

(Topic No.14)

Submitted To
Submitted By
Dr. Md Shahedul Alam
Assistant Professor
Ayatullah Siddiqui
st
School of BusinessDate
andof Submission: 31 Oct
Economics
2016
ID: 151 2845 660

MARKET
MARKETING
AND FIRM

Table of Contents
1. Introduction..................................................................................2
2. Things that Makes Topic Interesting.............................................2
3. Argument by the Authors.............................................................3
4. Findings are Intuitive....................................................................4
5. Variables Measurement................................................................4
6. Conclusion in Relation with Findings............................................4
7. Relevance of the Knowledge........................................................5
8. Assessment..................................................................................5
ANNEXURE.........................................................................................6

1.Introduction
The journal focuses on the strategic marketing management of the
organizations
orientation

considering
(MO),

the

Market

Hypothesis
Capabilities

among
and

the

Market

Organizational

Performance. There is two different kind of factors involving

organizational Success; External Factor which defines the Market
Orientation (MO) and rest of two, Marketing Capability and overall
organization

performance

signify

the

internal

factor

for

the

organization.
The purpose of the study was the identify and empirically examine
the organizations Marketing Capability with market orientation and
the organizations performance by achieving competitive advantage
through Market Orientation and Dynamic Capability (DC). Findings
indicate that, Market Orientation (MO) and Marketing Capabilities
are

complementary

assets

that

contribute

to

superior

firm

performance by achieving competitive advantage. It is also found

that market orientation has a direct effect on firms' return on assets
(ROA), and that marketing capabilities directly impact both ROA and
perceived firm performance.
The data was collected as secondary data and few primary data as
reference which is filled out as a survey form by respective personal
from the sample organization. And the final result is calculated
through statistical analysis. Despite the limitation overall result and
discussion support the hypothesis which is drawn at first of the
study. Implication and future research aspect is quite conclusive.

2.Things that Makes Topic Interesting

Strategy concentration prepares postgraduate/MBA level students to
step into strategic management and organizational leadership
positions more efficiently. As it is becoming more important as the

organizations are facing more and more complex situation day by

day because of globalization and other issues. The article shows
relation among the Market Orientation, Marketing Capabilities of
organizations along with its overall performance.
As a student of MBA program
with marketing concentration I
find this topic quite impulsive
as its relationship with market
and organizations.
have

been

Earlier we

taught

interaction

between

about
market

and organization theoretically

but this topic is more visible,
constructive, interesting and easy to grab. This topic shows me how
dynamic capability linked with market orientation and overall firms
performance which can further help for achieving competitive
advantage the organization require for long term success and
survivor.

3.Argument by the Authors

Authors have stated the traditional resource based theory. As their
theory, Market Orientation (MO) and Marketing Capabilities in which
resources are deployed has a positive effect on the firms
performance in cross industry sample. At the same time Market
Orientation (MO) has a direct effect on the companies Return on
Asset (ROA).

They give three hypothesis about MO, Marketing

Capabilities and Firms Performance.

Hypothesis 1: A firms market orientation is positively associated
with its business performance.
Hypothesis

2:

firms

marketing

capabilities

are

positively

associated with its business performance.

Hypothesis 3: The interaction between a firms market orientation

and marketing capabilities is positively associated with the firms
business performance.

4.Findings are Intuitive

The journal article mainly focus on the MO, dynamic capabilities and
organizations performance. The findings of the journals are intuitive.
Authors tested their hypothesis using two complementary approach.
The result support the resource based theory linking MO directly
with performance in terms of ROA. While the marketing capabilities
are key to identify the organizational performance across different
industry. Two statistical model indicates that firms market based
knowledge and their marketing capability, competencies can
enhance individuals capabilities.

5.Variables Measurement
Hypothesis considering three variable Market Orientation (MO),
Marketing Capabilities and Organizational Performance are tested
using two way complementary approach. The primary data was
collected via mail survey among US firms operating in consumer
and business market offering including product and service.
Mostly all of the industry is covered but automobile, Health Industry,
Utility, Retail Trade whose are the one of the most revenue earning
industry in US. Market orientation was measured using the Jaworski
and Kohli (1993) scale. Seven distinguished marketing capabilities
were measured using existing scale which is 7 point rating scale.
Organizational

performance

is

measured

in

two

way;

firms

profitability and average ROA. All the data were collected efficiently
and measures through more than one statistical method.

6.Conclusion in Relation with Findings

The statistical analysis show significant positive result in all of the
hypothesis. As there are some important business sector is excluded
intentionally/unintentionally the finding could have been different.
And the primary data which have been collected in only US based
firm there might be some result variation in different country as the
country is differ by PESTLE analysis. And Porters 5 (+1) forces
theory might have some effect by following this result.
Overall the conclusion drawn by the author is reasonable according
to the findings based on hypothesis. Key market based information
and organizational capabilities both fundamentally interlinked with
market environment responsible for the firms profitability and
Return on Asset (ROA).

7.Relevance of the Knowledge

As I have experience of more than one year in a reputed company
who is specialized in marketing in pharmaceutical sector, I find
coherence this knowledge with my prior experience. Not only
pharma industry this journal findings covers almost all industry as
data were taken from diverse fields of sector.
Anyone willing to work in marketing, strategic management
department

can

find

this

helpful

to

understand

the

relationship/interaction among the MO, Marketing capabilities and

Firms performance indicators.

8.Assessment
In this journal article Authors only correlates among the MO,
Marketing Capabilities and organizational performance which is a
small part of the marketing and strategic management.

Any

business sector along product and service sector can use this

hypothesis to formulate and execution of the strategy with the help

of this findings.
Although the findings of the journal is limited to one country but the
main marketing theme around the world is same with minor
adjustment. So any globalized nation can utilize this finding to
improve the firms overall performance through ROA and profitability.
Three future aspect can hold particularly. Firstly, finding out
importance

of

MO

and

what

marketing

capability

(Dynamic

Capability) factors influence the MO. Secondly, How such marketing

capabilities are developed who influence the MO and Firms
performance. Lastly, Finding out the level of responsiveness which
defines the firms response towards incoming market intelligent.
Apart from marketing and strategic management there isnt any
other areas where it can fit in due to its unique in nature.

ANNEXURE