Environmental Turbulence, Service Marketing Mix, Marketing Orientation and Microfinance Performance: A Conceptual Model

  • Fairol Bin Halim School of Business Management, Universiti Utara Malaysia.
  • Bello Taofik Abidemi School of Business Management, Universiti Utara Malaysia
  • Ahmad Alshauibi School of Business Management, Universiti Utara Malaysia
Keywords: Market orientation, service marketing mix, microfinance performance, environmental turbulence

Abstract

The study proposes a framework for the moderating effect of environmental turbulence on the relationship between service marketing mix, market orientation and microfinance performance in Nigeria. However, there is scarcity of research that have considered the relationship between market orientation, service marketing mix and microfinance performance. most studies conducted on the direct relationship revealed inconsistencies. Due to the inconsistencies in the literature on this relationship, a moderating variable of environmental turbulence was proposed. The study will add to the literature on microfinance performance in a developing country like Nigeria which is relatedly unexplored.

Downloads

Download data is not yet available.

Article Analytics Summary

Author Biographies

Fairol Bin Halim, School of Business Management, Universiti Utara Malaysia.

School of Business Management, Universiti Utara Malaysia.

Bello Taofik Abidemi, School of Business Management, Universiti Utara Malaysia

School of Business Management, Universiti Utara Malaysia

Ahmad Alshauibi, School of Business Management, Universiti Utara Malaysia

School of Business Management, Universiti Utara Malaysia

References

Abdulai Mahmoud, M., & Yusif, B. (2012). Market orientation, learning orientation, and the performance of nonprofit organisations (NPOs). International Journal of Productivity and Performance Management, 61(6), 624-652. DOI: https://doi.org/10.1108/17410401211249193

Abidemi, B. T., Halim, F. B., & Alshuaibi, A. I. (2017). MARKETING CAPABILITIES AND ORGANIZATIONAL PERFORMANCE: A PROPOSED MODEL ON THE MODERATING EFFECT OF TECHNOLOGICAL TURBULENCE. International Journal of Management Research and Reviews, 7(6), 626.

Agarwal, S., Krishna Erramilli, M., & Dev, C. S. (2003). Market orientation and performance in service firms: role of innovation. Journal of services marketing, 17(1), 68-82. DOI: https://doi.org/10.1108/08876040310461282

Aghaei, M., Vahedi, E., Kahreh, M. S., & Pirooz, M. (2014). An examination of the relationship between services marketing mix and brand equity dimensions. Procedia-Social and Behavioral Sciences, 109, 865-869. DOI: https://doi.org/10.1016/j.sbspro.2013.12.555

Ahmad, A. E. M. K., Al-Qarni, A. A., Alsharqi, O. Z., Qalai, D. A., & Kadi, N. (2013). The impact of marketing mix strategy on hospitals performance measured by patient satisfaction: an empirical investigation on Jeddah private sector hospital senior managers perspective. International Journal of Marketing Studies, 5(6), 210-227. DOI: https://doi.org/10.5539/ijms.v5n6p210

Akroush, M. N. (2011a). The 7Ps classification of the services marketing mix revisited: an empirical assessment of their generalisability, applicability and effect on performance-evidence from Jordan’s Services Organisations. Jordan Journal of Business Administration, 7(1), 117-141.

Akroush, M. N. (2011b). The 7Ps classification of the services marketing mix revisited: an empirical assessment of their generalisability, applicability and effect on performance-evidence from Jordan’s Services Organisations. Jordan Journal of Business Administration, 7(1).

Akroush, M. N. (2012). An empirical model of marketing strategy and shareholder value: A value-based marketing perspective. Competitiveness Review: An International Business Journal, 22(1), 48-89. DOI: https://doi.org/10.1108/10595421211200179

Aliyu, M. S. (2015). LINKING MARKET ORIENTATION TO PERFORMANCE IN THE NIGERIAN MANUFACTURING SMEs.

Aremu, M. A., & Bamiduro, J. A. (2012). Marketing mix practice as a determinant of entrepreneurial business performance. International Journal of Business and Management, 7(1), 205-213. DOI: https://doi.org/10.5539/ijbm.v7n1p205

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2012). Marketing: an introduction: Pearson Prentice-Hall, London.

Arokiasamy, A. R. A. (2012). The effect of marketing mix and customer perception on brand loyalty. Journal of business and management, 4(2), 1-11. DOI: https://doi.org/10.9790/487X-0420111

Aziz, N. A., & Omar, N. A. (2013). Exploring the effect of Internet marketing orientation, Learning Orientation and Market Orientation on innovativeness and performance: SME (exporters) perspectives. Journal of Business Economics and Management, 14(sup1), S257-S278. DOI: https://doi.org/10.3846/16111699.2011.645865

Bai, X., & Chang, J. (2015). Corporate social responsibility and firm performance: The mediating role of marketing competence and the moderating role of market environment. Asia Pacific Journal of Management, 32(2), 505-530. DOI: https://doi.org/10.1007/s10490-015-9409-0

Baker, W. E., & Sinkula, J. M. (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses. Journal of Small Business Management, 47(4), 443-464. DOI: https://doi.org/10.1111/j.1540-627X.2009.00278.x

Bello, F., and Alshaubi. (2017). Service Marketing Mix, Market orientation and Organisational Performance: A proposed framework. ASIAN JOURNAL OF MULTIDISCIPLINARY STUDIES, 5(7).

Borden, N. H. (1964). The concept of the marketing mix. Journal of advertising research, 4(2), 2-7.

Boso, N., Story, V. M., & Cadogan, J. W. (2013). Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy. Journal of Business Venturing, 28(6), 708-727. DOI: https://doi.org/10.1016/j.jbusvent.2013.04.001

Danneels, E., & Sethi, R. (2011). New product exploration under environmental turbulence. Organization Science, 22(4), 1026-1039. DOI: https://doi.org/10.1287/orsc.1100.0572

Day, G. S. (1994). The capabilities of market-driven organizations. The Journal of marketing, 37-52. DOI: https://doi.org/10.1177/002224299405800404

Farrell, M. A., Oczkowski, E., & Kharabsheh, R. (2008). Market orientation, learning orientation and organisational performance in international joint ventures. Asia Pacific Journal of Marketing and Logistics, 20(3), 289-308. DOI: https://doi.org/10.1108/13555850810890066

Gaur, S. S., Vasudevan, H., & Gaur, A. S. (2011). Market orientation and manufacturing performance of Indian SMEs: Moderating role of firm resources and environmental factors. European Journal of Marketing, 45(7/8), 1172-1193. DOI: https://doi.org/10.1108/03090561111137660

Gholami, S., & Birjandi, M. (2016). The effect of market orientation and entrepreneurial orientation on the performance of SMEs. Journal of Current Research in Science(1), 361.

Goll, I., & Rasheed, A. A. (2004). The moderating effect of environmental munificence and dynamism on the relationship between discretionary social responsibility and firm performance. Journal of Business Ethics, 49(1), 41-54. DOI: https://doi.org/10.1023/B:BUSI.0000013862.14941.4e

González‐Benito, Ó., González‐Benito, J., & Muñoz‐Gallego, P. A. (2014). On the consequences of market orientation across varied environmental dynamism and competitive intensity levels. Journal of Small Business Management, 52(1), 1-21. DOI: https://doi.org/10.1111/jsbm.12028

Gronum, S., Verreynne, M. L., & Kastelle, T. (2012). The role of networks in small and medium‐sized enterprise innovation and firm performance. Journal of Small Business Management, 50(2), 257-282. DOI: https://doi.org/10.1111/j.1540-627X.2012.00353.x

Gruber-Muecke, T., & Hofer, K. M. (2015). Market orientation, entrepreneurial orientation and performance in emerging markets. International Journal of Emerging Markets, 10(3), 560-571. DOI: https://doi.org/10.1108/IJoEM-05-2013-0076

Homaid, A. A., Minai, M. S., & Rahman, H. A. (2015). TQM and performance linkage in the microfinance institutions: The mediating role of IT capability. Asian Social Science, 11(21), 213. DOI: https://doi.org/10.5539/ass.v11n21p213

Honohan, P. (2008). Cross-country variation in household access to financial services. Journal of Banking & Finance, 32(11), 2493-2500. DOI: https://doi.org/10.1016/j.jbankfin.2008.05.004

Hussain, J., Ismail, K., & Shah, F. A. (2015). The effect of market and entrepreneurial orientations on organizational performance: study of Malaysian SMEs. City University Research Journal, 5(2), 203-218.

Hussain, J., Rahman, W., & Shah, F. A. (2016). Market Orientation and Performance: The Interaction Effect of Entrepreneurial Orientation. Pakistan Journal of Commerce & Social Sciences, 10(2), 388-403.

Jabeen, R., Aliyu, M. S., & Mahmood, R. (2016). The Moderating Effect Of External Environment On The Relationship Between Market Orientation And Business Perfromance: A Quantitaive Approach. Internatnational Postgraduate Business Journal, 8(1), 16-25.

Jandaghi, G., Amiri, A. N., Amini, A., & Darani, M. (2011). Assessment and Ranking the Effects of Marketing Mix on Flower and Plant Sale Volume. International Journal of Academic Research in Business and Social Sciences, 1(1), 207-219. DOI: https://doi.org/10.6007/ijarbss.v1i2.33

Jansen, J. J., Van Den Bosch, F. A., & Volberda, H. W. (2006). Exploratory innovation, exploitative innovation, and performance: Effects of organizational antecedents and environmental moderators. Management science, 52(11), 1661-1674. DOI: https://doi.org/10.1287/mnsc.1060.0576

Judd, V. C. (1987). Differentiate with the 5th P: People. Industrial Marketing Management, 16(4), 241-247. DOI: https://doi.org/10.1016/0019-8501(87)90032-0

Kaplan, R. S., & Norton, D. P. (1996). Using the balanced scorecard as a strategic management system (pp. 35-62): Harvard business review Boston.

Kaplan, R. S., & Norton, D. P. (2000). Putting the Balanced Scorecard to work. Focusing Your Organization on Strategy—with the Balanced Scorecard, 2, 2-18.

Kazemian, S., Abdul Rahman, R., Mohd Sanusi, Z., & Adewale, A. A. (2016). Role of market orientation in sustainable performance: The case of a leading microfinance provider. Humanomics, 32(3), 352-375. DOI: https://doi.org/10.1108/H-03-2016-0028

Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. The Journal of marketing, 1-18. DOI: https://doi.org/10.1177/002224299005400201

Kotler, P. (1986). Global standardization—courting danger. Journal of Consumer Marketing, 3(2), 13-15. DOI: https://doi.org/10.1108/eb008158

Kumar, V., Jones, E., Venkatesan, R., & Leone, R. P. (2011). Is market orientation a source of sustainable competitive advantage or simply the cost of competing? Journal of Marketing, 75(1), 16-30. DOI: https://doi.org/10.1509/jmkg.75.1.16

Lam, W., & Harker, M. J. (2015). Marketing and entrepreneurship: An integrated view from the entrepreneur’s perspective. International Small Business Journal, 33(3), 321-348. DOI: https://doi.org/10.1177/0266242613496443

Li, Y., Zhao, Y., Tan, J., & Liu, Y. (2008). Moderating effects of entrepreneurial orientation on market orientation‐performance linkage: Evidence from Chinese small firms. Journal of Small Business Management, 46(1), 113-133. DOI: https://doi.org/10.1111/j.1540-627X.2007.00235.x

Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429-451. DOI: https://doi.org/10.1016/S0883-9026(00)00048-3

MacDougall, S. L., & Pike, R. H. (2003). Consider your options: changes to strategic value during implementation of advanced manufacturing technology. Omega, 31(1), 1-15. DOI: https://doi.org/10.1016/S0305-0483(02)00061-0

Mahmood, R., & Khan, S. M. (2014). Impact of Service Marketing Mixes on Customer Perception: A Study on Eastern Bank Limited, Bangladesh. European Journal of Business and Management, 6(34), 164-167.

McCarthy, E. J. (1964). Basic Marketing, Richard D. Irwin, Homewood, IL.

Nanayakkara, G., & Iselin, E. R. (2012). An exploratory study of the performance of microfinancing institutions using the balanced scorecard approach. International Journal of Business and Information, 7(2), 165.

Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. The Journal of marketing, 20-35. DOI: https://doi.org/10.1177/002224299005400403

Navarro-García, A., Arenas-Gaitán, J., & Rondán-Cataluña, F. J. (2014). External environment and the moderating role of export market orientation. Journal of Business Research, 67(5), 740-745. DOI: https://doi.org/10.1016/j.jbusres.2013.11.037

Obiwuru, T. C., Okwu, A. T., Akpa, V. O., & Nwankwere, I. A. (2011). Effects of leadership style on organizational performance: A survey of selected small scale enterprises in Ikosi-Ketu council development area of Lagos State, Nigeria. Australian journal of business and management research, 1(7), 100.

Polat, I., & Mutlu, H. M. (2012). The impacts of market orientation, entrepreneurial orientation, environmental uncertainty and internationalization speed on firm performance. European Researcher(27), 1248-1254.

Rafiq, M., & Ahmed, P. K. (1995). Using the 7Ps as a generic marketing mix: an exploratory survey of UK and European marketing academics. Marketing Intelligence & Planning, 13(9), 4-15. DOI: https://doi.org/10.1108/02634509510097793

Shehu, A. M., & Mahmood, R. (2014). Market orientation, Knowledge management and Entrepreneurial orientation as predictors of SME performance: Data screening and Preliminary Analysis. Paper presented at the Information and Knowledge Management.

Shin, S. (2012). Decomposed approach of market orientation and marketing mix capability: Research on their relationships with firm performance in the Korean context. International Business Research, 5(1), 22-33. DOI: https://doi.org/10.5539/ibr.v5n1p22

Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. The Journal of marketing, 63-74. DOI: https://doi.org/10.1177/002224299505900306

Slater, S. F., & Narver, J. C. (1998). Customer-led and market-oriented: Let's not confuse the two. Strategic management journal, 1001-1006. DOI: https://doi.org/10.1002/(SICI)1097-0266(199810)19:10<1001::AID-SMJ996>3.0.CO;2-4

Theodosiou, M., Kehagias, J., & Katsikea, E. (2012). Strategic orientations, marketing capabilities and firm performance: An empirical investigation in the context of frontline managers in service organizations. Industrial Marketing Management, 41(7), 1058-1070. DOI: https://doi.org/10.1016/j.indmarman.2012.01.001

Valmohammadi, C., & Servati, A. (2011). Performance measurement system implementation using Balanced Scorecard and statistical methods. International Journal of Productivity and Performance Management, 60(5), 493-511. DOI: https://doi.org/10.1108/17410401111140400

Vieira, V. A. (2010). Antecedents and consequences of market orientation: a Brazilian meta-analysis and an international mega-analysis. BAR-Brazilian Administration Review, 7(1), 40-58. DOI: https://doi.org/10.1590/S1807-76922010000100004

Wang, C.-H., Chen, K.-Y., & Chen, S.-C. (2012). Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors. International Journal of Hospitality Management, 31(1), 119-129. DOI: https://doi.org/10.1016/j.ijhm.2011.03.013

Wanjau, K. L., Gakure, R. W., Magutu, P. O., & Kahiri, J. (2013). The Role Of Quality Adoptnion In Growth And Management Of Small & Medium Enterprises In Kenya. European Scientific Journal, ESJ, 9(7).

Webb, J. W., Ireland, R. D., Hitt, M. A., Kistruck, G. M., & Tihanyi, L. (2011). Where is the opportunity without the customer? An integration of marketing activities, the entrepreneurship process, and institutional theory. Journal of the Academy of Marketing Science, 39(4), 537-554. DOI: https://doi.org/10.1007/s11747-010-0237-y

Wei, L.-Q., & Lau, C.-M. (2008). The impact of market orientation and strategic HRM on firm performance: The case of Chinese enterprises. Journal of International Business Studies, 39(6), 980-995. DOI: https://doi.org/10.1057/palgrave.jibs.8400395

Zhou, K. Z., Brown, J. R., & Dev, C. S. (2009). Market orientation, competitive advantage, and performance: A demand-based perspective. Journal of Business Research, 62(11), 1063-1070. DOI: https://doi.org/10.1016/j.jbusres.2008.10.001

Zhou, K. Z., Li, J. J., Zhou, N., & Su, C. (2008). Market orientation, job satisfaction, product quality, and firm performance: evidence from China. Strategic management journal, 29(9), 985-1000. DOI: https://doi.org/10.1002/smj.700

Published
2018-06-30
How to Cite
Halim, F. B., Abidemi, B. T., & Alshauibi, A. (2018). Environmental Turbulence, Service Marketing Mix, Marketing Orientation and Microfinance Performance: A Conceptual Model. Journal of Business and Social Review in Emerging Economies, 4(1), 27-36. https://doi.org/10.26710/jbsee.v4i1.360