Dynamics of market orientation in Croatian economy

Bruno Grbac () and Ivana First
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Bruno Grbac: University of Rijeka, Faculty of Economics, Rijeka, Croatia
Ivana First: University of Rijeka, Faculty of Economics, Rijeka, Croatia

Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, 2011, vol. 29, issue 2, 373-394

Abstract: It was the goal of this research to examine the dynamics of Croatian transformation to market orientation and test whether the market orientation model changes with time as the business environment changes. Based on the literature analysis, we proposed a hypothetical model which relies on behavioural approach in understanding market orientation. To empirically test the hypothetical model, we used data previously collected for 2001, and by replicating the same questionnaire now collected data for 2011. Data was analyzed by hierarchical regression analysis on the two sets of data. Our findings reveal that Croatian organizations reached the level of moderate market orientation leaving space for improvement. Findings also reveal that higher level of market orientation correlates with higher business performance. Furthermore, with development of ICT, the model of market orientation modified in time in a way that in predicting successful market oriented reaction, specific information on consumer satisfaction gains importance, while general information from competitor and consumer databases lose importance. Despite the changes in the relationships among the elements of market orientation, the model itself similarly predicts performance today as it did ten years ago. Managers are advised to increase implementation of market orientation especially focusing on market responsiveness as such behaviour will lead to better performance.

Keywords: Market orientation level; market responsiveness; change of the market orientation model; longitudinal research (search for similar items in EconPapers)
JEL-codes: C12 C21 L25 M14 M31 (search for similar items in EconPapers)
Date: 2011
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