An examination of market orientated organisational culture

Abstract

This research is a mixed-method case study of the organisational culture of market orientated companies. Market orientation occupies an important position in marketing and strategy literature. Research has acknowledged the benefits and consequences of market orientation (Narver and Slater, 1990; Kohli and Jaworski, 1990; Ruekert, 1992; Jaworski and Kohli 1993). The importance of organisational culture in the successful implementation of a market orientation strategy has also been recognised (Halliday, 2000). Homburg and Pflesser (2000) determine that an awareness of the distinction between the different layers of organisational culture contributes to a better understanding of the drivers of market orientated behaviour. Thus the research questions of this study investigated what market orientated organisational cultural values, norms, artefacts and behaviours as identified by Homburg and Pflesser (2000) exist in market orientated companies and if they encourage a market orientation. A mixed-methods case study approach was utilised with surveys (n=65), interviews (n=10) and observations in three companies. This study can conclude that the market orientated organisational cultural values, norms; artefacts and behaviours identified by Homburg and Pflesser (2000) do exist in the companies researched. Furthermore, there was a correlation between values (r = .73), norms (r = .77), artefacts (r = .49) and market orientated behaviours which was further supported by qualitative data. Thus indicating that values influence market orientated behaviours, norms influence market orientated behaviours and artefacts influence market orientated behaviours. In addition, there was evidence of interrelationships between values and interrelationships between norms that facilitated and enhanced a market orientation in companies. Market orientated organisational cultural values and norms were also found to be unique to each company and ranked in accordance with particular company goals. Finally, artefacts were also found to reflect the unique values and norms of a company. The core conclusion of this study is that the combined synergistic effect of the particular unique market orientated organisational cultural values and norms that exist within a company which are reflected in artefacts are central to the development of a market orientated organisational culture. It is the culture that develops within a company that effectively encourages market orientated behaviours.