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Market orientation in managing relationships with multiple constituencies of Croatian higher education

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Abstract

In this paper, market orientation in Croatian higher education (HE) is discussed within the context of stakeholder-oriented management. Drawing on existing studies, the ‘classical’ empirical model, describing the market orientation of generic nonprofit organisations, has been adapted to the contingencies of the Croatian HE sector. Empirical testing of the model, based on primary data drawn from the majority of public institutions of higher learning in the country, reveals inadequate market orientation toward the relevant stakeholders. Although social market orientation currently does not exist in Croatian HE institutions, the empirical results confirm that it might be possible to initiate a ‘virtuous circle’, in which relevant market orientation and stakeholder management practices, directed toward one or other of the stakeholders, simultaneously enhance orientation toward the other stakeholders. Unfortunately, the current situation in HE is not satisfactory, which could hinder the implementation of development of knowledge society in Croatia.

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Notes

  1. The multiple constituency framework has been applied to the case of ethically responsible higher education (in the Croatian context) in Alfirevic et al. (2007).

  2. Previously mentioned paper by Alfirevic et al. (2007) and Mihanovic (2007).

  3. See Central Bureau of Statistics of the Republic of Croatia (2006) and http://www.mzos.hr/ustanove/. Retrieved on 25 April 2006.

  4. See in: Central Bureau of Statistics of the Republic of Croatia: Education 2004/2005—Statistical Data (Obrazovanje 2004/2005—Statističke informacije), Zagreb (2005) and Education 2005/2006—Statistical Data (Obrazovanje 2005/2006—Statističke informacije), Zagreb (2006).

  5. See Ministry of Science, Education and Sports of the Republic of Croatia (2006).

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Acknowledgments

The authors acknowledge the assistance of two anonymous reviewers, who have provided helpful comments and greatly facilitated the formulation of research conclusions in the revised version of this article.

Author information

Authors and Affiliations

  1. Faculty of Economics and Business Zagreb, Kennedyjev trg 6, 10 000, Zagreb, Croatia

    Jurica Pavičić

  2. Faculty of Economics Split, Matice hrvatske 31, 21000, Split, Croatia

    Nikša Alfirević & Zoran Mihanović

Authors
  1. Jurica Pavičić
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  2. Nikša Alfirević
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  3. Zoran Mihanović
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Corresponding author

Correspondence to Nikša Alfirević.

Appendix

Appendix

Calculation of market orientation (MO) coefficients by using factor analysis

Correlation matrixa

Correlation

Faculty MO

Students MO

Potential students MO

Economy MO

Ministry MO

Parents MO

Faculty MO

1.000

0.812

0.683

0.688

0.736

0.602

Students MO

0.812

1.000

0.719

0.646

0.584

0.559

Potential students MO

0.683

0.719

1.000

0.692

0.691

0.779

Economy MO

0.688

0.646

0.692

1.000

0.663

0.605

Government ministry MO

0.736

0.584

0.691

0.663

1.000

0.615

Parents MO

0.602

0.559

0.779

0.605

0.615

1.000

  1. aDeterminant = 0.009

Communalities

 

Initial

Extraction

Faculty MO

1.000

0.785

Students MO

1.000

0.716

Potential students MO

1.000

0.798

Economy MO

1.000

0.703

Ministry MO

1.000

0.702

Parents MO

1.000

0.657

  1. Extraction method: principle component analysis

Total variance explained

Component

Initial eigenvalues

Extraction sums of squared loadings

Total

% of variance

Cumulative %

Total

% of variance

Cumulative %

1

4.362

72.706

72.706

4.362

72.706

72.706

2

0.538

8.970

81.676

   

3

0.415

6.913

88.590

   

4

0.346

5.768

94.357

   

5

0.216

3.603

97.960

   

6

0.122

2.040

100.000

   
  1. Extraction method: principal component analysis

Component matrixa

 

Component

1

Potential students MO

0.893

Faculty MO

0.886

Students MO

0.846

Economy MO

0.839

Ministry MO

0.838

Parents MO

0.810

  1. Extraction method: principle component analysis
  2. a1 components extracted

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Pavičić, J., Alfirević, N. & Mihanović, Z. Market orientation in managing relationships with multiple constituencies of Croatian higher education. High Educ 57, 191–207 (2009). https://doi.org/10.1007/s10734-008-9141-5

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