Components of Market Orientation in Frozen Food Business
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Published:
Sep 24, 2018
Keywords:
Market Orientation Innovation Frozen Food Business Small and Medium-Sized Enterprise
Main Article Content
Abstract
This research is aimed to study the market orientation which is a basic leading to innovation in the frozen food business in the context of small and medium-sized enterprise (SME). The research process consists of six stages: 1) the review of the literature and relevant studies, 2) development of the research model, 3) development of data collection tool, 4) the conduction of empirical research where the data collected from the questionnaires, 5) the analysis of research data by using statistical technique; namely, Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA), and 6) research conclusion. The population of this study is the frozen food business which is registered as SMEs under the office of small and medium enterprise promotion. The sample size is 410. The findings found that the component of market orientation affecting innovation can be classified into four dimensions six components as 1) customer: need and customer feedback, 2) supplier, 3) industry: competitor pressure and industry information sharing , and 4) national and international context: government support and regulation. The findings indicate the importance of market orientation as an external element that will be foundation for creating innovation in the future. SMEs can adapt and gradually develop and lead to sustainable long-term competitiveness.
Article Details
How to Cite
Distanont, A. (2018). Components of Market Orientation in Frozen Food Business. WMS Journal of Management, 7(3), 41–51. Retrieved from https://so06.tci-thaijo.org/index.php/wms/article/view/147019
Section
Research Articles-Academic Articles
References
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Argote, L. & Ingram, P. (2000). Knowledge Transfer: A Basis for Competitive Advantage in Firms. Organization Behavior and Human Decision Processes, 82(1), 150–169.
Asomaning, R. & Abdulai, A. (2015). An Empirical Evidence of the Market Orientation – Market Performance Relationship in Ghanaian Small Businesses. Educational Research International, 4(2), 69-86.
Blonder, C., & Pritzl, R. (1992). Developing strategic alliances: a conceptual framework for successful co-operation. European Management Journal, 10(4), 412–421.
Chong, C.W., Chong, S.C., & Gan, G.C. (2011). Inter-organizational knowledge transfer needs among small and medium enterprises. Library Review, 60(1), 37–52.
Christensen. (1997). Technological Discontinuities, Organizational Capabilities, and Strategic Commitments. Industrial and Corporate Change, 3(1997), 655–685.
Distanont, A., Haapasalo, H., Kamolvej, T. and Meeampol, S. (2013). Interaction patterns in collaborative product development (CPD). International Journal of Synergy and Research, 1(2), 21–44.
Distanont, A., Haapasalo, H., Rassamethes, B. & Lin, B. (2012). Knowledge transfer pattern in collaborative product
development. International Journal of Intercultural Information Management, 3(1), 59-81.
Ekanayake, S. and Abeysinghe, D. (2010). Entrepreneurial Strategic Innovation Model for Attaining Premium Value for The Sri Lankan Gem and Jewellery Industry. Asian Academy of Management Journal, 15(2), 217–237.
Euromonitor International (2012). รายงานผลการสำรวจสถานการณ์ตลาดอาหารแปรรูปแช่แข็งในอาเซียน สืบค้นเมื่อวันที่ 9 มีนาคม 2560 สืบค้นจาก http://www.euromonitor.com.
Grant, R.M., & Baden-Fuller, C. (2004). A knowledge accessing theory of strategic alliances. Journal of Management Studies, 41(1), 61–84.
Hamel, G., Doz, Y. & Prahalad, C. (1989) Collaborate with your competitors and win. Harvard Business Review, 67(1), 133–139.
Hasahi, N. & Buckley, P.J. (2014). Is competitive advantage a necessary condition for the emergence of the multinational enterprise?. Global Strategy Journal, 4(1), 35-48.
Hillebrand, B., & Biemans, W.G. (2004). Links between internal and external cooperation in product development: An exploratory study. Journal of Product Innovation Management, 21(2), 110–122.
Hult, G. T. M., Ketchen, D. J., Jr., & Slater, S. F. (2004). Information processing, knowledge development, and strategic supply chain performance. Academy of Management Journal, 47(2), 241-253
Inauen, M., & Schenker-Wicki, A. (2011). The impact of outside-in open innovation on innovation performance. European Journal of Innovation Management, 14(4), 496-520.
John C. Narver and Stanley F. Slater. (2012). The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(4). 20-35
Johnsen, T.E. (2009). Supplier involvement in new product development and innovation: Taking stock and looking to the future. Journal of Purchasing & Supply Management, 15, 187-197.
Keskin, Halit. (2006). Market orientation, learning orientation, and innovation capabilities in SMEs: An extended model. European Journal of Innovation Management, 9(4), 396-417.
Kohli, A. K. & Jaworski, B. J. (2012). Market Orientation: The Construct, Research Propositions, and Managerial Implications. Journal of Marketing, 54(2), 1-18.
Lee, Tien-Shang and Tsai, Hsin-Ju. (2005). The effects of business operation mode on market orientation, learning orientation and innovativeness. Industrial Management & Data Systems, 105(3), 325-348.
Littler, D., Leverick, F., & Bruce, M. (1995). Factors affecting the process of collaborative product development: a study of UK manufacturers of information and
communications technology products. Journal of Product Innovation Management, 12(1), 16–32.
Marina du Plessis. (2007). The role of knowledge management in innovation. Journal of Knowledge Management, 11(4), 20-29.
Millson, M.R., Raj, S.P., & Wilemon, D. (1992). A survey of major approaches for accelerating new product development. Journal of Product Innovation Management, 9(1), 53–69.
Aziz, N. N. A. (2016). Innovation and Competitive Advantage: Moderating Effects of Firm Age in Foods Manufacturing SMEs in Malaysia. Procedia Economics and Finance, 35, 256-266.
Patanakul, P. & Pinto, J.K. (2014). Examining the roles of government policy on innovation. Journal of High Technology Management Research, 25(2), 97–10.
Polat, I., & Mutlu, H. M. (2012). The impacts of market orientation, entrepreneurial orientation, environmental uncertainty and internationalization speed on firm performance. European Researcher, 27(8-2), 1248–1254.
Primo, M.A.M., & Amundson, S.D. (2002). An exploratory study of supplier relationships on new product development outcomes. Journal of Operations Management, 20(1), 33–52.
Ragatz, G.L., Handfield, R.B., Petersen, K.J. (2002) Benefits associated with supplier integration into new product development under conditions of technology uncertainty. Journal of business research, 55(5), 389-400.
Rakthin, S., Calantone, R. J. & Wang, J. F. (2016). Managing market intelligence: The comparative role of absorptive capacity and market orientation. Journal of Business Research, 69(12), 5569-5577.
Robert W. Ruekert. (1992). Developing a market orientation: An organizational strategy perspective. International Journal of Research in Marketing, 9(3). 225-245
Rosell, D.T. & N Lakemond, N. (2012). Collaborative innovation with suppliers: a conceptual model for characterising supplier contributions to NPD. International Journal of Technology Intelligence and Planning, 8(2), 197-214
Schreiber J. B., Stage, F.K., King, J., Nora, A., & Bralow, E.A. (2006). Reporting Structural Equation Modeling and Confirmatory Factor Analysis Results: A Review. The Journal of Educational Research, 99(6), 323-337.
Shehu, A. M., & Mahmood, R. (2014). Market orientation and organizational culture’s impact on SME performance: A SEM Approach. International Affairs and Global Strategy, 24, 1-10.
Tehseen, S., & Ramayah, T. (2015). Entrepreneurial competencies and SMEs Business Success: The contingent role of external integration. Mediterranean Journal of Social Sciences, 6(1), 2039-2117.
Song, M., & Di Benedetto, C. A. (2008). Supplier’s involvement and success of radical new product development in new ventures. Journal of Operations Management, 26(1), 1–22.
Tseng, M., Huang, F. & Chiu, S.F.A. (2012) Performance drivers of green innovation under complete information. Procedia – Social and Behavioural Sciences, 40, 234–250.
Virameteekul, V. (2011). Message from Ministry of Science and Technology. Retrieved From www.thailand-innovativecompanies .com/ttd_bizenterprise/Indprof/TTIC/TTIC_2011_IPO2.pdf.
Wagner, S. M., & Hoegl, M. (2006). Involving suppliers in product development: Insights from R&D directors and project managers. Industrial Marketing Management, 35(8), 936–943.
Wynstra, F., Ten Pierick, E. (2000). Managing supplier involvement in new product development: a portfolio approach. European Journal of Purchasing and Supply Management, 6(1), 49-57.
Zahra, S.A., & Bogner, W.C. (2000). Technology strategy and software new ventures’ Performance: exploring the moderating effect of the competitive environment. Journal of Business Venturing, 15(2), 135–173.
Zehir, C., Ertosunb, Ö. G., Zehir, S., & Müceldilli, B. (2012). Total Quality Management Practices’ Effects on Quality Performance and Innovative Performance. Procedia - Social and Behavioral Sciences, 41, 273 – 280.
Zhang, J., & Zhu, M. (2015). Market orientation, product innovation and export performance: evidence from Chinese manufacturers. Journal of Strategic Marketing, 24(5), 377-397.
Zonooz, B. H., Farzam, V., Satarifar, M., & Bakhshi, L. (2011). The Relationship Between Knowledge Transfer and Competitiveness in "SMEs" with Emphasis on Absorptive Capacity and Combinative Capabilities, International Business and Management, 2(1), 56-78.
The Office of SMEs Promotion (OSMEP) (2017) SMEs information and situation Retrieved 18 January 2017, From http://www.sme.go.th/th/index.php/data-alert/alert.
อัญณิฐา ดิษฐานนท์ (2560). บทบาทของนวัตกรรมทางเทคโนโลยีที่ส่งผลต่อความได้เปรียบในการแข่งขันของธุรกิจขนาดกลางและขนาดย่อมในกลุ่มอุตสาหกรรมอาหารแช่แข็ง. กรุงเทพฯ: กองทุนวิจัยวิทยาลัยนวัตกรรม มหาวิทยาลัยธรรมศาสตร์.
Argote, L. & Ingram, P. (2000). Knowledge Transfer: A Basis for Competitive Advantage in Firms. Organization Behavior and Human Decision Processes, 82(1), 150–169.
Asomaning, R. & Abdulai, A. (2015). An Empirical Evidence of the Market Orientation – Market Performance Relationship in Ghanaian Small Businesses. Educational Research International, 4(2), 69-86.
Blonder, C., & Pritzl, R. (1992). Developing strategic alliances: a conceptual framework for successful co-operation. European Management Journal, 10(4), 412–421.
Chong, C.W., Chong, S.C., & Gan, G.C. (2011). Inter-organizational knowledge transfer needs among small and medium enterprises. Library Review, 60(1), 37–52.
Christensen. (1997). Technological Discontinuities, Organizational Capabilities, and Strategic Commitments. Industrial and Corporate Change, 3(1997), 655–685.
Distanont, A., Haapasalo, H., Kamolvej, T. and Meeampol, S. (2013). Interaction patterns in collaborative product development (CPD). International Journal of Synergy and Research, 1(2), 21–44.
Distanont, A., Haapasalo, H., Rassamethes, B. & Lin, B. (2012). Knowledge transfer pattern in collaborative product
development. International Journal of Intercultural Information Management, 3(1), 59-81.
Ekanayake, S. and Abeysinghe, D. (2010). Entrepreneurial Strategic Innovation Model for Attaining Premium Value for The Sri Lankan Gem and Jewellery Industry. Asian Academy of Management Journal, 15(2), 217–237.
Euromonitor International (2012). รายงานผลการสำรวจสถานการณ์ตลาดอาหารแปรรูปแช่แข็งในอาเซียน สืบค้นเมื่อวันที่ 9 มีนาคม 2560 สืบค้นจาก http://www.euromonitor.com.
Grant, R.M., & Baden-Fuller, C. (2004). A knowledge accessing theory of strategic alliances. Journal of Management Studies, 41(1), 61–84.
Hamel, G., Doz, Y. & Prahalad, C. (1989) Collaborate with your competitors and win. Harvard Business Review, 67(1), 133–139.
Hasahi, N. & Buckley, P.J. (2014). Is competitive advantage a necessary condition for the emergence of the multinational enterprise?. Global Strategy Journal, 4(1), 35-48.
Hillebrand, B., & Biemans, W.G. (2004). Links between internal and external cooperation in product development: An exploratory study. Journal of Product Innovation Management, 21(2), 110–122.
Hult, G. T. M., Ketchen, D. J., Jr., & Slater, S. F. (2004). Information processing, knowledge development, and strategic supply chain performance. Academy of Management Journal, 47(2), 241-253
Inauen, M., & Schenker-Wicki, A. (2011). The impact of outside-in open innovation on innovation performance. European Journal of Innovation Management, 14(4), 496-520.
John C. Narver and Stanley F. Slater. (2012). The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(4). 20-35
Johnsen, T.E. (2009). Supplier involvement in new product development and innovation: Taking stock and looking to the future. Journal of Purchasing & Supply Management, 15, 187-197.
Keskin, Halit. (2006). Market orientation, learning orientation, and innovation capabilities in SMEs: An extended model. European Journal of Innovation Management, 9(4), 396-417.
Kohli, A. K. & Jaworski, B. J. (2012). Market Orientation: The Construct, Research Propositions, and Managerial Implications. Journal of Marketing, 54(2), 1-18.
Lee, Tien-Shang and Tsai, Hsin-Ju. (2005). The effects of business operation mode on market orientation, learning orientation and innovativeness. Industrial Management & Data Systems, 105(3), 325-348.
Littler, D., Leverick, F., & Bruce, M. (1995). Factors affecting the process of collaborative product development: a study of UK manufacturers of information and
communications technology products. Journal of Product Innovation Management, 12(1), 16–32.
Marina du Plessis. (2007). The role of knowledge management in innovation. Journal of Knowledge Management, 11(4), 20-29.
Millson, M.R., Raj, S.P., & Wilemon, D. (1992). A survey of major approaches for accelerating new product development. Journal of Product Innovation Management, 9(1), 53–69.
Aziz, N. N. A. (2016). Innovation and Competitive Advantage: Moderating Effects of Firm Age in Foods Manufacturing SMEs in Malaysia. Procedia Economics and Finance, 35, 256-266.
Patanakul, P. & Pinto, J.K. (2014). Examining the roles of government policy on innovation. Journal of High Technology Management Research, 25(2), 97–10.
Polat, I., & Mutlu, H. M. (2012). The impacts of market orientation, entrepreneurial orientation, environmental uncertainty and internationalization speed on firm performance. European Researcher, 27(8-2), 1248–1254.
Primo, M.A.M., & Amundson, S.D. (2002). An exploratory study of supplier relationships on new product development outcomes. Journal of Operations Management, 20(1), 33–52.
Ragatz, G.L., Handfield, R.B., Petersen, K.J. (2002) Benefits associated with supplier integration into new product development under conditions of technology uncertainty. Journal of business research, 55(5), 389-400.
Rakthin, S., Calantone, R. J. & Wang, J. F. (2016). Managing market intelligence: The comparative role of absorptive capacity and market orientation. Journal of Business Research, 69(12), 5569-5577.
Robert W. Ruekert. (1992). Developing a market orientation: An organizational strategy perspective. International Journal of Research in Marketing, 9(3). 225-245
Rosell, D.T. & N Lakemond, N. (2012). Collaborative innovation with suppliers: a conceptual model for characterising supplier contributions to NPD. International Journal of Technology Intelligence and Planning, 8(2), 197-214
Schreiber J. B., Stage, F.K., King, J., Nora, A., & Bralow, E.A. (2006). Reporting Structural Equation Modeling and Confirmatory Factor Analysis Results: A Review. The Journal of Educational Research, 99(6), 323-337.
Shehu, A. M., & Mahmood, R. (2014). Market orientation and organizational culture’s impact on SME performance: A SEM Approach. International Affairs and Global Strategy, 24, 1-10.
Tehseen, S., & Ramayah, T. (2015). Entrepreneurial competencies and SMEs Business Success: The contingent role of external integration. Mediterranean Journal of Social Sciences, 6(1), 2039-2117.
Song, M., & Di Benedetto, C. A. (2008). Supplier’s involvement and success of radical new product development in new ventures. Journal of Operations Management, 26(1), 1–22.
Tseng, M., Huang, F. & Chiu, S.F.A. (2012) Performance drivers of green innovation under complete information. Procedia – Social and Behavioural Sciences, 40, 234–250.
Virameteekul, V. (2011). Message from Ministry of Science and Technology. Retrieved From www.thailand-innovativecompanies .com/ttd_bizenterprise/Indprof/TTIC/TTIC_2011_IPO2.pdf.
Wagner, S. M., & Hoegl, M. (2006). Involving suppliers in product development: Insights from R&D directors and project managers. Industrial Marketing Management, 35(8), 936–943.
Wynstra, F., Ten Pierick, E. (2000). Managing supplier involvement in new product development: a portfolio approach. European Journal of Purchasing and Supply Management, 6(1), 49-57.
Zahra, S.A., & Bogner, W.C. (2000). Technology strategy and software new ventures’ Performance: exploring the moderating effect of the competitive environment. Journal of Business Venturing, 15(2), 135–173.
Zehir, C., Ertosunb, Ö. G., Zehir, S., & Müceldilli, B. (2012). Total Quality Management Practices’ Effects on Quality Performance and Innovative Performance. Procedia - Social and Behavioral Sciences, 41, 273 – 280.
Zhang, J., & Zhu, M. (2015). Market orientation, product innovation and export performance: evidence from Chinese manufacturers. Journal of Strategic Marketing, 24(5), 377-397.
Zonooz, B. H., Farzam, V., Satarifar, M., & Bakhshi, L. (2011). The Relationship Between Knowledge Transfer and Competitiveness in "SMEs" with Emphasis on Absorptive Capacity and Combinative Capabilities, International Business and Management, 2(1), 56-78.