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Dynamics of market orientation in Croatian economy

Author

Listed:
  • Bruno Grbac

    (University of Rijeka, Faculty of Economics, Rijeka, Croatia)

  • Ivana First

    (University of Rijeka, Faculty of Economics, Rijeka, Croatia)

Abstract

It was the goal of this research to examine the dynamics of Croatian transformation to market orientation and test whether the market orientation model changes with time as the business environment changes. Based on the literature analysis, we proposed a hypothetical model which relies on behavioural approach in understanding market orientation. To empirically test the hypothetical model, we used data previously collected for 2001, and by replicating the same questionnaire now collected data for 2011. Data was analyzed by hierarchical regression analysis on the two sets of data. Our findings reveal that Croatian organizations reached the level of moderate market orientation leaving space for improvement. Findings also reveal that higher level of market orientation correlates with higher business performance. Furthermore, with development of ICT, the model of market orientation modified in time in a way that in predicting successful market oriented reaction, specific information on consumer satisfaction gains importance, while general information from competitor and consumer databases lose importance. Despite the changes in the relationships among the elements of market orientation, the model itself similarly predicts performance today as it did ten years ago. Managers are advised to increase implementation of market orientation especially focusing on market responsiveness as such behaviour will lead to better performance.

Suggested Citation

  • Bruno Grbac & Ivana First, 2011. "Dynamics of market orientation in Croatian economy," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 29(2), pages 373-394.
    • Handle: RePEc:rfe:zbefri:v:29:y:2011:i:2:p:373-394
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    References listed on IDEAS

    as
    1. József Berács & Gábor Nagy, 2010. "Effect of the business environment on market orientation and performance in an emerging country," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 22(2), pages 243-254.
    2. Armstrong, J. Scott & Collopy, Fred, 1996. "Competitor Orientation: Effects of Objectives and Information on Managerial Decisions and Profitability," MPRA Paper 81676, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Market orientation level; market responsiveness; change of the market orientation model; longitudinal research;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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