Designing an Impact Model of Market Orientation on the Productivity of Iranian Handmade Carpet Industry

Subject Areas : Business Management

Mehrdad  Azadi ¹ (Ph.D. Candidate, Department of Business Administration, Central Tehran Branch, Islamic Azad University, Tehran, Iran)
Seyyed Abbas  Heidari ² (Assistant professor, Department of Business Administration, Central Tehran Branch, Islamic Azad University, Tehran, Iran)
VahidReza  Mirabi ³ (Associated professor, Department of Business Administration, Central Tehran Branch, Islamic Azad University, Tehran, Iran)

Received: 2021-08-27 Accepted : 2021-12-19 Published : 2023-03-21

Keywords: Productivity, Market Orientation, handmade carpet industry,

Abstract :

Handmade carpet industry is one of the most powerful internal industries which could not repeat the success it had in the past years at a global scale despite its high potential. One of the reasons can be lack of attention to productivity and the related affecting factors. Therefore, in the current research, a model was presented to measure the impact of marketing on the productivity of carpet industry in Iran. The statistical population included two different parts of carpet industry experts (10 experts) and the managers at different levels of Iran National Carpet Center and the Ministry of Industry, Mine and Trade from among whom 203 ones were selected based on Cochran sampling formula. First, reviewing the theories and frameworks about market orientation and productivity and benefiting the views of handmade carpet industry experts, a preliminary model was extracted. Then, through continuously applying structural equation model in LISREL software environment, the extracted model was tested and finally, the impact of market orientation including customer orientation (customer satisfaction, customer loyalty and customer capital), market situation (rival orientation and market intelligence) and inter functional coordination (flexibility, knowledge sharing and cooperation) on productivity (including market effectiveness and market intensity) was proved. It was also found that the influence of customer orientation on productivity was more than other dimensions.

References:

Alhakimi, W. and Mahmoud, M. (2020). The impact of market orientation on innovativeness: evidence from Yemeni SMEs, Asia Pacific Journal of Innovation and Entrepreneurship, 14(1): 47-59.

Amini Khiabani, G. R., Hamdi, K. (2018). Relationship between market orientation culture with human resource productivity, Productivity Management Journal, 44 (1): 157-179. (In Persian)

AsadZadeh, Ahmad, Asiaban Rezaei, M., Tahouni, M. (2014). The role of market orientation on brand performance improvement in international markets, Productivity Management Journal, 7 (24): 119-140. (In Persian)

Beneke, J., Blampied, S., Dewar, N., Soriano, L., (2016). The impact of market orientation and learning orientation on organisational performance: A study of small to medium-sized enterprises in Cape Town, South Africa, Journal of Research in Marketing and Entrepreneurship, 18(1): 90-108.

Esmaeili, F. (2019). Measuring cost leadership strategy in handmade carpet supply chain, M. A Thesis, Yazd University. (In Persian)

Fernandes, C.I.M.A.S., Ferreira, J.J.M., Lobo, C.A. and Raposo, M. (2020), The impact of market orientation on the internationalization of SMEs, Review of International Business and Strategy, 30(1): 123-143.

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.

HaghShenas Kashani, F., Saeedi, N., HassanPour Pazvari, M. (2010). Strategic Planning for Iran carpet industry to join WTO by SWOT matrix, Business Surveys journal, 8 (43): 58-68. (In Persian)

Heidari, S. A., Saeedi, N. (2011).Surveying the influence of competitive intelligence on Iran carpet industry compatibility, Goljaam quarterly, 19: 83-97. (In Persian)

Kajalo, S., Lindblom, A., (2015). Market orientation, entrepreneurial orientation and business performance among small retailers, International Journal of Retail & Distribution Management, 43(7): 580-596

Madsen, T. K., Sørensen, H. F.,  Torres-Ortega, R., (2015). The Market Orientation of Domestic and International New Ventures, in Shaoming Zou , Hui Xu , Linda Hui Shi (ed.) Entrepreneurship in International Marketing Advances in International Marketing, 25 (2): 21 - 44

Mahmoud,, M. A., Blankson, C., Owusu-Frimpong, N., Nwankwo, S., Trang, T. P., (2016). Market orientation, learning orientation and business performance: The mediating role of innovation, International Journal of Bank Marketing, 34(5): 623-648

Saeedi, N., NorouzNejad Darzi Naghibi, A., ZendehBad, S. (2011). Measuring and ranking internet marketing dimensions of Iran carpet industry, New Business and Economy Quarterly, 25-26: 169-185. (In Persian)

Saeedi, N., ZedehBad, S. (2013). Analyzing on Iran carpet industry situation in international markets, Commercial Surveys, 59: 23-33. (In Persian)

Taghavi Fard, M. T., Ghafourian, A., Behboudi, O. (2015). surveying the influence of market orientation on business performance, Business Administration Researches Journal, 7 (13): 205-227. (In Persian)

Yang, D., Wei, Z., Shi, H. and Zhao, J. (2020), Market orientation, strategic flexibility and business model innovation, Journal of Business & Industrial Marketing, Vol. 35 No. 4, pp. 771-784.