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Journal of the Academy of Marketing Science

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01.01.2014 | Original Empirical Research

The influence of organic organizational cultures, market responsiveness, and product strategy on firm performance in an emerging market

verfasst von: Yinghong (Susan) Wei, Saeed Samiee, Ruby P. Lee

Erschienen in: Journal of the Academy of Marketing Science | Ausgabe 1/2014

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Abstract

Organizational culture is a strategic resource that influences a range of activities within firms, and empirical evidence from management and marketing demonstrates that it impacts performance. In this study, we investigate how organic types of organizational culture (i.e., adhocracy and clan) serve as a strategic resource to influence marketing effectiveness and performance in an emerging economy, using an extended form of the resource-based view as our theoretical framework. We posit that organic cultures, which are relatively dominant in emerging-nation firms, serve as antecedents of competitive advantage and superior performance. We selected China as the context to test the veracity of our model and use multiple informants and archival performance data to minimize common method variance. Our results support the proposed model and demonstrate that organic cultures impact market responsiveness, while confirming the critical roles of market responsiveness and product strategy change in producing superior performance. We further demonstrate a direct effect between clan culture and product strategy change, in addition to its indirect effect. Importantly, our results uncover that, although individually either adhocracy or clan culture can significantly improve the firm’s responsiveness, their combined effect does not enhance market responsiveness; that is, their interaction yields a negative coefficient. Additionally, the influence of organic cultures on market responsiveness varies across different industry types. These important differences, along with theoretical contributions and managerial implications of our findings, are discussed, and several avenues for future research are proposed.

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Although this research deals with firms in an emerging-market country, Western firms such as Apple, Google, Microsoft, and Nike share similar values and market approaches (Iyer and Davenport 2008; Manjoo 2011; Ofek and Wathieu 2010).

Major differences across infrastructures, economic policies, and politics in countries generally referred to as “emerging” are widely acknowledged. However, on average firms in such markets tend to be smaller, have informal structures, and be tradition-bound and managed by entrepreneurial leaders. Thus, emerging-market firms are more likely dominated by organic cultures (Cameron and Quinn 2011). While our research context is China, we use the term emerging markets as a means of highlighting their shared organizational and environmental traits.

Other intangible strategic resources mentioned in the literature include managerial capabilities, human capital, internal auditing, labor relations, total quality management, and organizational reputation.

Evidence from the literature indicates that differences in organizational governance are related to nationality (e.g., Hewett et al. 2006; Ouchi 1980b) and, accordingly, in this study national culture is viewed as being implicitly present in the organizational culture (cf. Chuang et al. 2012). In China, for example, organizational culture is influenced by the guanxi network of personal connections (Boisot and Child 1996; Chuang et al. 2012; Hewett et al. 2006).

Among other concerns that heighten the significance of developing a greater appreciation for organic cultures is the attractiveness of emerging-market firms as potential acquisition targets or potential joint-venture partners (Johnson and Tellis 2008). Emerging markets attract significant levels of foreign direct investment (FDI), and host-market firms offer an opportunity to many entrants to rapidly establish themselves as viable local and international competitors. For 2011 alone, FDI in China was valued at $116 billion.

IBM represents an example of a firm for which the diffusion of its organizational culture among new hires is given a high priority. New IBMers are reputed as figuratively being painted blue (as in imparting the Big Blue’s culture to new employees), and IBM attempts to find amicable exit strategies for those to whom “the paint does not adhere.”

Industries represented in the sample consist of chemical materials and products; pharmaceutical manufacturing; food processing; food manufacturing; beverage manufacturing; general machinery manufacturing; special equipment manufacturing; electrical machinery and equipment manufacturing; electronic and telecommunication equipment manufacturing; other manufacturing; non-metal mineral products; black metal smelting and processing; non-ferrous metal smelting and processing; metal products; rubber products; plastics products; transportation equipment manufacturing; instrument, meter, and office product manufacturing; power, steam, and hot water manufacturing and supply; printing and recording; education and sports products; textiles; fashion and other fiber products; leather and further products; chemical fiber manufacturing; wood processing and bamboo; rattan products; furniture manufacturing; and paper manufacturing and paper products.

Following Shrout and Fleiss (1979), we use intraclass correlation coefficient 2 (ICC2). ICC2 removes mean differences between judges but is sensitive to interactions of raters by judges and, therefore, is used in this type of research. Per Shrout and Fleiss (1979), ICC1 is appropriate when there is a consistent number or set of raters for all the ratees, which is not the case in this research. ICC1 is sensitive to differences in means between raters and is a measure of absolute agreement. Absolute agreement seeks whether targets received the same exact scores, while consistency seeks whether targets ranked the same order, which is the main focus of ICC2. Specifically, ICC1 is called “One-Way Random” because (1) it makes no effort to disentangle the effects of the rater and ratee and (2) it assumes these ratings are randomly drawn from a larger population (i.e., a random effects model). ICC1 figures, as would be expected, will always be the smallest of the ICC measures. For example, for this research, ICC1 for adhocracy culture, clan culture, market responsiveness, and product strategy change among 22 respondents are 0.18, 0.16, 0.10, and 0.28, respectively. ICC1 for clan culture and product strategy change among 10 respondents are 0.16 and 0.30, respectively.

In line with the core values of hierarchy and market cultures (e.g., Cameron and Quinn 1999; Deshpandé et al. 1993; Ouchi 1980a), we used two three-item measures for hierarchy (our company stresses rank and status; our company has a complete system of rules and regulations; in our company, everyone is clear about his/her responsibilities, rights, and benefits) and market cultures (our company attaches great importance to improving products’ competitiveness; our company pays more attention to where the market is going than our competitors; our company performs a great deal of market research studies). The results for EFA, reliability test, and CFA ensure reasonable face validity, reliability (α = 0.51; 0.72), and discriminant validity for these measures. It is noteworthy that although our measures do represent core values of mechanistic cultures as reflected and used in the literature (e.g., Yarbrough et al. 2011), given the theoretical framing of this study, the measurement of mechanistic cultures was not a goal of the data collection process. The authors gratefully acknowledge the contribution of anonymous reviewers regarding this issue.

This is analogous to the role that marketing research has traditionally played in countries with collectivist cultures such as Japan where, as compared to Western nations, relatively little market-sensing via formal information gathering is exercised and their resultant product strategies have traditionally been rooted in extensive discussion, rationalization, and collaboration (cf. Johansson and Nonaka 1987).

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Titel: The influence of organic organizational cultures, market responsiveness, and product strategy on firm performance in an emerging market
verfasst von: Yinghong (Susan) Wei
Saeed Samiee
Ruby P. Lee
Publikationsdatum: 01.01.2014
Verlag: Springer US
Erschienen in: Journal of the Academy of Marketing Science / Ausgabe 1/2014
Print ISSN: 0092-0703
Elektronische ISSN: 1552-7824
DOI: https://doi.org/10.1007/s11747-013-0337-6

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