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.
Marketing channels exist in an increasingly competitive international and global environment. Consequently, many firms have reengineered their marketing channels systems by placing greater emphasis on fostering higher levels of cooperation among international channel participants. However, there are relatively few studies that explore cross‐cultural issues in marketing channels. Thus, investigating whether cultural differences influence how channel participants react to a firm’s channel strategies is an important issue that needs to be addressed. This study comparatively examines channel leadership styles, cooperation, and channel member performance across three divergent national cultures. More specifically, the study seeks to assess whether employing uniform channel strategies produces similar responses from channel members in different countries. Using data drawn from a sample of automobile dealerships in the USA, Finland, and Poland, inconsistent results were found, which suggest that using leadership stylesto foster cooperation among channel members across different national cultures on a standardized basis is not an appropriate channel strategy. Based on the findings, international channel management implications, limitations, and directions for future research are proferred.
This study investigates the links between organizational culture, the use of open innovation sources and the performance of SMEs. The main hypothesis of the study is that a special type of organizational culture (termed innovative culture), which fosters creativity, learning and inter-employee cooperation – will correspond with a greater scope of open innovation sources and higher levels of innovative, operational and financial performance. The study was based on a representative CATI survey of 473 SMEs operating in manufacturing and services industries in Poland. Our statistical analysis relied on building and testing structural equation model with the AMOS software. The findings confirmed a positive association between innovative culture and the scope of open sources of innovation. However, innovative culture had no direct effect on the percentage of sales from new and modified products, which is often used as a metric of innovativeness, but did show a positive influence on an index of operational performance and ROI. Such statistical patterns suggest that fostering innovative culture is beneficial to a company, though probably not through an increased number of product innovations, but rather via process, administrative and marketing innovations, as well as other gains in efficiency attained due to more streamlined employee cooperation and knowledge exchange. The study adds to the existing body of knowledge in management science by providing a better understanding of mechanisms underlying innovative culture’s impacts on open innovation practices and metrics of operational and financial performance in the context of small and medium enterprises.
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