Value Creation for Marketing Capacities; Articulating Entrepreneurship Orientation and Market Orientation Interactions: The Mediating Role of Innovative Approach

Document Type : Research Paper

Authors

1 Assistant Prof., Department of Business Management, Faculty of Management Economics and Administrative Sciences, Semnan University, Semnan, Iran

2 Ph.D. Candidate, Department of Business Management, Faculty of Management Economics and Administrative Sciences, Semnan University, Semnan, Iran

3 Assistant Prof., Department of Marketing Management, Faculty of Management, Tehran West Branch, Islamic Azad University, Tehran, Iran

Abstract

Objective
Marketing capacity is the mechanism that empowers a firm to implement its strategies in a competitive environment. With this approach, firms can show their customer-oriented culture to the market to link not only their physical resources but their strategic and intellectual assets, using innovative ideas for valuable goods and services, and meeting customer needs. Value creation in marketing is an issue that has always been considered by researchers; however, in previous studies, the role of innovative attitude in creating value for marketing capacity has not been studied. Therefore, this study aims to respond to two basic questions while filling the existing research gap: (1) Can marketing capabilities with an innovative approach be able to value the customer? (2) How does the interaction of marketing capacity and innovative attitudes relate to value creation?
 
Methodology
Modeling and developing hypotheses was sought from library studies and interviewing a statistical population composed of experts in international transport industry and structural equation modeling techniques were used to validate the model and test the hypotheses. Simple random sampling was used to collect data.
 
Findings
The results of this study showed that firms used entrepreneurial orientation and marketing orientation to create their customers’ perceived value in using their marketing capabilities. The findings also showed that entrepreneurial, market-oriented and innovative firms provide better customer satisfaction compared to their competitors. The value creation of the entrepreneurial-orientation approach is more affected by organizational innovation than the procedural innovation, and of course this analysis is in line with empirical expectations. It is because organizational innovation develops entrepreneurial enterprise innovation both inside and outside the organization and creates a vast network of working relationships. In the case of market-oriented approach and based on the findings, three scenarios can be explained; first, the market-oriented approach does not lead to value creation at all; second, this approach can immediately create value per se, and ultimately the market-orientation approach create value focusing on procedures other than marketing innovations. The first scenario is rejected because the market-oriented approach is an attitude in which the customer is at the core of all affairs and the organization's goal is to fulfill the customer’s desires and needs, therefore it leads to value creation in itself. However, the fact that the market-orientation approach is able to create values ​​from other paths is an analysis which in turn can be considered as a suggestion for future studies.
 
Conclusion
In explaining the results of this research, entrepreneurship and market orientation were introduced as two key approaches in using marketing capacity of firms. The firm can address intra-organizational entrepreneurship by modifying the structure and methods, and can address inter-organizational entrepreneurship by modifying the communications and service practices of the enterprise. Market orientation is a customer-oriented approach and the organization aims to institutionalize customers as the main focus of attention. In order to gain value from these approaches, an innovative approach was identified that seems to have expanded into the center of marketing activities and has found its status. Hence, innovation is no longer just a concept but it is a strategic business element in which the organization designs and implements its own strategies to achieve its goal and to create value. In other words, entrepreneurial, market-oriented, and innovative firms will be able to create values in the best way their customers’ expect.

Keywords

Main Subjects

References

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Journal of Business Management
Volume 11, Issue 1
2019
Pages 87-104

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