Purpose – The purpose of this paper is to provide a better understanding of the antecedents of organisational performance (OP), both financial and marketing, and the influence of holding a strategic market orientation (MO) where customer-base volatility is taken into account. Design/methodology/approach – A sample of 167 marketing organisations in Australia was surveyed to test the hypothesised model. Structural equation modelling was employed in the data analysis.
Findings – Use of the world wide web (Web) reported by organisations in this study indicates that there is still separate use of the Web and that it has yet to be fully integrated into the marketing strategy of many organisations. The study finds that traditional marketing effort mediates the relationship between holding a MO and OP in terms of financial indicators.
Research limitations/implications – A major limitation of this study is that it surveys organisations from many industries rather than selected industries. This tends to mask some of the possible outcomes.
Practical implications – The findings in this study suggest that traditional and online elements of marketing effort each mediate the influence of holding a MO on OP, but differently. Innovation culture is found to influence both marketing practice and marketing performance, directly. A single measure of environmental turbulence – customer-base turbulence or churn – negatively affects marketing performance, and ultimately financial performance. Originality/value – A major contribution of this study is the examination of use of the Web in marketing effort and how this usage influences financial and marketing performance.
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Field of Research
150503 Marketing Management (incl Strategy and Customer Relations)
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