IDEAS home Printed from https://ideas.repec.org/a/rbs/ijfbss/v4y2015i1p95-111.html
   My bibliography  Save this article

The Role of Business Ethics in the Relationship between Market Orientation and Business performance

Author

Listed:
  • Gusti O. Widana

    (The School of Business Management, Intitut Teknologi Bandung, Indonesia)

  • Sudarso K. Wirjono

    (The School of Business Management, Intitut Teknologi Bandung, Indonesia)

  • Mustika S. Purwanegara

    (The School of Business Management, Intitut Teknologi Bandung, Indonesia)

  • Mohamad Toha

    (The School of Business Management, Intitut Teknologi Bandung, Indonesia)

Abstract

The positive of impact of market orientation toward business performance of a company is a common wisdom in the marketing literatures. Hence the prior studies recommend that the connection will depend on other strategic actions. In this regards, this study tries to assess the construct of business ethics as the precedent of market orientation in the context of Indonesia Islamic banks. Upon assessing data using SmartPLS, this study finds that market orientation is the determinant of business performance and Islamic business ethics is the precedent of market orientation. However, market orientation is not effective as the mediator in the relationship between Islamic businessethics and business performance. The discussion of this finding is provided as well as the managerial implication at the end of this paper.

Suggested Citation

  • Gusti O. Widana & Sudarso K. Wirjono & Mustika S. Purwanegara & Mohamad Toha, 2015. "The Role of Business Ethics in the Relationship between Market Orientation and Business performance," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 4(1), pages 95-111, January.
    • Handle: RePEc:rbs:ijfbss:v:4:y:2015:i:1:p:95-111
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/384/364
    Download Restriction: no
    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/384
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adam Nguyen & Wesley Cragg, 2012. "Interorganizational Favour Exchange and the Relationship Between Doing Well and Doing Good," Journal of Business Ethics, Springer, vol. 105(1), pages 53-68, January.
    2. Abul Hassan & Abdelkader Chachi & Salma Abdul Latiff, 2008. "Islamic Marketing Ethics and Its Impact on Customer Satisfaction in the Islamic Banking Industry القيم الإسلامية للتسويق وأثرها في كسب رضا العميل في صناعة الصيرفة الإسلامية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 21(1), pages 27-46, January.
    3. Bearden, William O & Hardesty, David M & Rose, Randall L, 2001. "Consumer Self-Confidence: Refinements in Conceptualization and Measurement," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(1), pages 121-134, June.
    4. Kevin Zheng Zhou & Julie Juan Li & Nan Zhou & Chenting Su, 2008. "Market orientation, job satisfaction, product quality, and firm performance: evidence from China," Strategic Management Journal, Wiley Blackwell, vol. 29(9), pages 985-1000, September.
    5. Inmaculada Carrasco, 2006. "Ethics and Banking," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(1), pages 43-50, February.
    6. Abeng, Tanri, 1997. "Business Ethics in Islamic Context: Perspectives of a Muslim Business Leader," Business Ethics Quarterly, Cambridge University Press, vol. 7(3), pages 47-54, July.
    7. Pascual Berrone & Jordi Surroca & Josep Tribó, 2007. "Corporate Ethical Identity as a Determinant of Firm Performance: A Test of the Mediating Role of Stakeholder Satisfaction," Journal of Business Ethics, Springer, vol. 76(1), pages 35-53, November.
    8. Paul D. Ellis, 2006. "Market Orientation and Performance: A Meta‐Analysis and Cross‐National Comparisons," Journal of Management Studies, Wiley Blackwell, vol. 43(5), pages 1089-1107, July.
    9. repec:kap:iaecre:v:12:y:2006:i:1:p:43-50 is not listed on IDEAS
    10. Hasan, Zubair, 2004. "Measuring efficiency of Islamic banks: criteria, methods, and social priorities," MPRA Paper 2977, University Library of Munich, Germany.
    11. G. Tomas M. Hult & David J. Ketchen & Stanley F. Slater, 2005. "Market orientation and performance: an integration of disparate approaches," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1173-1181, December.
    12. Anis Ben Brik & Belaid Rettab & Kamel Mellahi, 2011. "Market Orientation, Corporate Social Responsibility, and Business Performance," Journal of Business Ethics, Springer, vol. 99(3), pages 307-324, March.
    13. Olavarrieta, Sergio & Friedmann, Roberto, 2008. "Market orientation, knowledge-related resources and firm performance," Journal of Business Research, Elsevier, vol. 61(6), pages 623-630, June.
    14. Ing. Eva Tomaskova, 2009. "The Current Methods of Measurement of Market Orientation," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 135-150.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bhattarai, Charan Raj & Kwong, Caleb C.Y. & Tasavori, Misagh, 2019. "Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom," Journal of Business Research, Elsevier, vol. 96(C), pages 47-60.
    2. Smirnova, Maria M. & Rebiazina, Vera A. & Frösén, Johanna, 2018. "Customer orientation as a multidimensional construct: Evidence from the Russian markets," Journal of Business Research, Elsevier, vol. 86(C), pages 457-467.
    3. Mahmoud Abdulai Mahmoud & Charles Blankson & Robert E. Hinson, 2017. "Market orientation and corporate social responsibility: towards an integrated conceptual framework," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-15, December.
    4. He, Xinming & Wei, Yingqi, 2011. "Linking market orientation to international market selection and international performance," International Business Review, Elsevier, vol. 20(5), pages 535-546, October.
    5. Raju, P.S. & Lonial, Subhash C. & Crum, Michael D., 2011. "Market orientation in the context of SMEs: A conceptual framework," Journal of Business Research, Elsevier, vol. 64(12), pages 1320-1326.
    6. Dibrell, Clay & Craig, Justin B. & Hansen, Eric N., 2011. "How managerial attitudes toward the natural environment affect market orientation and innovation," Journal of Business Research, Elsevier, vol. 64(4), pages 401-407, April.
    7. Abbu, Haroon R. & Gopalakrishna, Pradeep, 2021. "Synergistic effects of market orientation implementation and internalization on firm performance: Direct marketing service provider industry," Journal of Business Research, Elsevier, vol. 125(C), pages 851-863.
    8. Vishal K. Gupta & Gizem Atav & Dev K. Dutta, 2019. "Market orientation research: a qualitative synthesis and future research agenda," Review of Managerial Science, Springer, vol. 13(4), pages 649-670, August.
    9. Li Peng & Yuan Li & Marc Essen & Mike W. Peng, 2020. "Institutions, resources, and strategic orientations: A meta-analysis," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 499-529, June.
    10. Zhou, Kevin Zheng & Brown, James R. & Dev, Chekitan S., 2009. "Market orientation, competitive advantage, and performance: A demand-based perspective," Journal of Business Research, Elsevier, vol. 62(11), pages 1063-1070, November.
    11. Timsit, Jean-Philippe & Castiaux, Annick & Truong, Yann & Athaide, Gerard A. & Klink, Richard R., 2015. "The effect of market-pull vs. resource-push orientation on performance when entering new markets," Journal of Business Research, Elsevier, vol. 68(9), pages 2005-2014.
    12. Sanna Joensuu-Salo & Kirsti Sorama & Anmari Viljamaa & Elina Varamäki, 2018. "Firm Performance among Internationalized SMEs: The Interplay of Market Orientation, Marketing Capability and Digitalization," Administrative Sciences, MDPI, vol. 8(3), pages 1-13, July.
    13. Yang Chen & Guiyao Tang & Jiafei Jin & Ji Li & Pascal Paillé, 2015. "Linking Market Orientation and Environmental Performance: The Influence of Environmental Strategy, Employee’s Environmental Involvement, and Environmental Product Quality," Journal of Business Ethics, Springer, vol. 127(2), pages 479-500, March.
    14. Paul Amadieu & Jean-Laurent Viviani, 2010. "Intangible effort and performance: the case of the French wine industry," Agribusiness, John Wiley & Sons, Ltd., vol. 26(2), pages 280-306.
    15. Fue Zeng & Ji Li & Hong Zhu & Zhenyao Cai & Pengcheng Li, 2013. "How International Firms Conduct Societal Marketing in Emerging Markets," Management International Review, Springer, vol. 53(6), pages 841-868, December.
    16. Wenbo Jiang & Francesco Rosati & Huaqi Chai & Taiwen Feng, 2020. "Market orientation practices enhancing corporate environmental performance via knowledge creation: Does environmental management system implementation matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1899-1924, July.
    17. Nuntasaree Sukato, 2014. "The Implementation of Market Orientation and Innovation in SMEs," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(5), pages 614-625, May.
    18. Yinghong Susan Wei & Hugh O’Neill & Nan Zhou, 2020. "How Does Perceived Integrity in Leadership Matter to Firms in a Transitional Economy?," Journal of Business Ethics, Springer, vol. 167(4), pages 623-641, December.
    19. Brower, Jacob & Rowe, Katie, 2017. "Where the eyes go, the body follows?: Understanding the impact of strategic orientation on corporate social performance," Journal of Business Research, Elsevier, vol. 79(C), pages 134-142.
    20. Yayla, Serdar & Yeniyurt, Sengun & Uslay, Can & Cavusgil, Erin, 2018. "The role of market orientation, relational capital, and internationalization speed in foreign market exit and re-entry decisions under turbulent conditions," International Business Review, Elsevier, vol. 27(6), pages 1105-1115.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijfbss:v:4:y:2015:i:1:p:95-111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hasan Dincer (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.