Market Orientation Determinants: Reflections from Academics in Universities of Technology in South Africa

  • B A Mokoena Vaal University of Technology
  • M Dhurup Vaal University of Technology

Abstract

Internationally, universities have come under increased pressure to respond to the changing market environment. A new axis for higher education institutions (HEIs) is a key to successful marketing, which lies in identifying the core business of institutions. Market orientation more closely reflects a philosophy that will not only serve to bring unity of purposes in HEIs, but serves as an indispensable tool that can assist HEIs to deliver their core business. The dynamics in the HE environment, the growth potential and the regulatory challenges make universities of technology (UoTs) ideal institutions for a study on the implementation of market orientation. It is against this backdrop that this paper considers the factors contributing to market orientation through the lenses of South African UoT academics through a quantitative study; 507 (n=507) academics participated in the study. Data are analysed through exploratory (to determine the factor structure) and confirmatory factor analysis (to confirm factor structure), descriptive and correlation analysis (to analyse the composition of the sample and to establish validity). Through the factor analysis procedure, seven factors were established, namely intelligence generation, inter-functional coordination, student-orientation, market intelligence dissemination, intelligence response design, intelligence response implementation and interdepartmental dynamics as a basis for operationalising the marketing orientation concept among UoTs. Through confirmatory factor analysis, the identified components seem to encapsulate the determinants of UoTs appropriately. From a practical standpoint, top management of universities could use these core market orientation factors to guide their strategic marketing plans and their strategic imperatives with the universities vision and mission in order to remain relevant and competitive. Future studies could expand these factors to provide a better understanding within HEIs in relation to their various stakeholders.

Downloads

Download data is not yet available.

References

Alhakimi, W. & Baharun, R. (2009). An integrative model of market orientation constructs in consumer goods industry: empirical evidence. International Management Review, 6(2), 40-54.

Altbach, P. G. (2010). University ranking season is here. Economic and political weekly (Mumbai, India) (December 4, 2010): 14-17.

Asaad, Y., Cohen, G. & Melewar, T. C. (2008). Antecedents and consequences of market orientation in universities: literature review and conceptual framework. Conference proceedings, Academy of Marketing Conference, 7-8, 1-11.

Avlontis, G. & Gounaris, S. (1999). Marketing orientation its determinants: an empirical analysis-increased market oriented activity what the literature suggests. Journal Market Focus Management, 4, 77-92. DOI: https://doi.org/10.1023/A:1009808112356

Badat, S. (2007). Higher education transformation in South Africa post 1994. Towards critical assessments. Pretoria: CEPD.

Bagozzi, R. P. & Yi, Y. (2012). Specification, evaluation and interpretation of structural equation models. Journal of the Academy of Marketing Sciences, 40(1), 8-34. DOI: https://doi.org/10.1007/s11747-011-0278-x

Batty, P. (2000). Scholar attacked for links to junta. Times Higher Education Supplement, 16 March: 23.

Binsardi, F. E. (2003). International marketing of British education: research on the students’ perception and the UK market penetration. Marketing Intelligence & Planning, 21(5), 318 – 327. DOI: https://doi.org/10.1108/02634500310490265

Bowen, H. & Fincher, C. (1996). Investment in learning: The individual and social value of American Higher education (2nd ed.). New Brunswick: Transaction Publishers.

Bradley, N. (2010). Marketing research: tools and techniques. 2nd ed. New York: Oxford University Press.

Browne, M. W. & Cudeck, R. (1993). Alternative ways of assessing model fit. In K.A. Bollen, & J.S. Long (Eds.), Testing Structural Equation Models (pp. 136-192). Newbury Park, CA: Sage.

Carr, J. C. & Lopez, T. B. (2007). Examining market orientation as both culture and conduct: modelling the relationships between market orientation and employees responses. The Journal of Marketing Theory and Practice, 15(2), 113-125. DOI: https://doi.org/10.2753/MTP1069-6679150202

Caruana, A., Ramaseshan, B. & Ewing, M. T. (1988). Do universities that are more market oriented perform better? International Journal of Public Sector Management, 11(1), 55-70. DOI: https://doi.org/10.1108/09513559810199898

Crittenden, V. L., Crittenden, W. F., Ferrell, L. K., Ferrell, O. C. & Pinney, C. C. (2011). Market orientation sustainability: a conceptual framework and propositions. Journal of the Academy of Marketing Science, 39, 71-85. DOI: https://doi.org/10.1007/s11747-010-0217-2

Day, G. S. & Nedungadi, P. (1994). Managerial representations of competitive advantage. Journal of Marketing, 58, 31-44. DOI: https://doi.org/10.1177/002224299405800203

Day, G. S. & Wensley, R. (1988). Assessing advantage: a framework for diagnosing competitive superiority. Journal of Marketing, 52, 1-20. DOI: https://doi.org/10.1177/002224298805200201

Drysdale, L. (1999). Marketing or market orientation: What is the difference? Journal for Gustation Primary School Teachers, 4, 28-29.

Du Pre, R. H. (2009). The place and role of Universities of Technology in South Africa. Bloemfontein: SATN.

Flavian, C. & Lozano, J. (2006). Organisational antecedents of market orientation in the public university system. International Journal of Public Sector, 19(5), 447-467. DOI: https://doi.org/10.1108/09513550610677771

Fornell, C. & Lacker, L. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 19(1), 39-50. DOI: https://doi.org/10.1177/002224378101800104

Giroux, H. A. (2003). Public spaces, private lives: democracy beyond 9/11. Lanham, MD: Rowman & Littlefield Publishers.

Gray, B., Osbrone, P. & Mathear, S. (2000). Are service firms more market oriented? Visionary Marketing for the 21st Century Facing the Challenge, 432-436.

Harris, L. C. & Ogbonna, E. (1999). Developing a market-oriented culture: a critical evaluation. Journal of Management Studies, 36(2), 177-196. DOI: https://doi.org/10.1111/1467-6486.00132

Harrison, P. J. & Shawn, R. N. (2004). Intraâ€organisational marketing culture and market orientation: a case study of the implementation of the marketing concept in a public library. Library Management, 25(8/9), 391-398. DOI: https://doi.org/10.1108/01435120410562899

Hemsley-Brown, J. & Oplatka, I. (2010). Market orientation in universities. International Journal of Educational Management, 24(3), 204-220.

Hu, L. & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal 6(1), 1-55. DOI: https://doi.org/10.1080/10705519909540118

Huck, S. W. (2012). Reading statistics and research, 6th edition. Person: Boston.M.A.

Hunt, S. D. & Morgan, R. M. (1995). The competitive advantage theory of competition. Journal of Marketing, 59(2), 1-15. DOI: https://doi.org/10.1177/002224299505900201

Ivy, J. (2001). Higher education institution image: a correspondence analysis approach. The International Journal of Educational Management, 15(6), 276-282. DOI: https://doi.org/10.1108/09513540110401484

Jayanti, R. K. & Burns, A. C. (1998). The Antecedents of preventive health care behaviour: an empirical study. Journal of the Academy of Marketing Science, 26(1), 6-15. DOI: https://doi.org/10.1177/0092070398261002

Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39, 31-6. DOI: https://doi.org/10.1007/BF02291575

Kaynak, E. & Kara, A. (2002). Consumer perceptions of foreign products: An analysis of productâ€country images and ethnocentrism. European Journal of Marketing, 36(7/8), 928 – 949. DOI: https://doi.org/10.1108/03090560210430881

Kohli, A. K. & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1-18. DOI: https://doi.org/10.1177/002224299005400201

Kohli, A. K., Jaworski, B. J. & Kumar, A. (1993). Markor: a measure of market orientation. Journal of Market Research, 30(4), 467-477. DOI: https://doi.org/10.1177/002224379303000406

Kotler, P. (2003). Marketing management. (International edition 20). 11th Edition. Upper Saddle River, New Jersey: Pearson Education.

Lafferty, B. & Hult, G. T. M. (2001). A synthesis of contemporary market orientation perspectives. European Journal of Marketing, 35(1/2), 92-109. DOI: https://doi.org/10.1108/03090560110363364

Lindsay, G. & Rodgers, T. (1998). Market orientation in the UK higher education sector: the influence of the education reform process 1979-1993. Quality in Higher Education, 4(2), 159-171. DOI: https://doi.org/10.1080/1353832980040205

Lings, I. & Greenly, G. (2005). Measuring internal market orientation. Journal of Service Research, 7(3), 71-94. DOI: https://doi.org/10.1177/1094670504271154

Ma, J. & Todorovic, Z. (2011). Making university relevant: MO as a dynamic capability within institutions of higher learning. Academy of Marketing Studies Journal, 15(2), 1-15.

Mainardes, E. W., Raposo, M. & Alves, H. (2014). Universities need a market orientation to attract non-traditional stakeholders as new financing sources. Public Organisation Review, 14, 159-171. DOI: https://doi.org/10.1007/s11115-012-0211-x

Makadok, R. (2001). Toward a synthesis of the resource-based and dynamic capability views of rent creation. Strategic Management Journal, 22(5), 387-401. DOI: https://doi.org/10.1002/smj.158

Malhotra, N. K. (2010). Marketing research: an applied orientation. 6th ed. Eaglewood Cliffs: Prentice-Hall.

Manz, C. C. & Sims, P. S. Jr. (1981). Vicarious learning: the influence of modelling on organizational behaviour. Academy of Management Review, 6(1), 105-113. DOI: https://doi.org/10.5465/amr.1981.4288021

Maringe, F. & Foskett, N. H. (2002). Marketing university education: the South African experience. Higher Education Review, 34(3), 35-51.

Maringe, F. (2005). Interrogating the crisis in higher education marketing: the CORD model. International Journal of Education Management, 19(7), 564-578. DOI: https://doi.org/10.1108/09513540510625608

Mazzarol, T. & Souter, G. N. (1999). Sustainable competitive advantage for education institutions: a suggested model. DOI: https://doi.org/10.1108/09513549910294496

Mercer, D. (1998). Marketing for managers. London: Orion Publishing Group.

Mitra, S. K. (2009). Why universities are adopting market oriented management practices? Asian Social Science, 5(3), 137–142. DOI: https://doi.org/10.5539/ass.v5n3p137

Morgan, A. N. & Vorhies, D. W. & Mason, C. H. (2009). Marketing orientation, marketing capabilities and firm performance. Strategic Management Journal, 30, 909-920. DOI: https://doi.org/10.1002/smj.764

Narver, J. & Slater, S. (1990). The effect of market orientation on business profitability. Journal of Marketing, 54(4), 20-35. DOI: https://doi.org/10.1177/002224299005400403

Naude, P. & Ivy, J. (1999). The marketing strategies of universities in the United Kingdom. The International Journal of Education Management, 13(3), 126-134. DOI: https://doi.org/10.1108/09513549910269485

Nunnally, J. C. (1978). Psychometric theory. McGraw-Hill Publishing: New York.

O’Connell, M. (2001). Market orientation: the implementation of the marketing concept. ITB Journal, 3, 4-15.

Pallant, J. (2010). SPSS survival manual: a systematic guide to data analysis using SPSS for Windows third edition. Open University Press: McGraw-Hill.

Penceliah, S. (2004). The applicability of market orientation to selected degree programmes at technikons in KwaZulu-Natal. PhD Thesis. North West University.

RSA. Republic of South Africa. (2013). White paper for Post-School Education and Training: building an expanded, effective and integrated post-school system. Department of Higher Education and Training. (p.130). Pretoria: Government Printers

Rindfleish, J. M. (2003).0 Segment profiling: reducing risk in higher education management. Journal of Higher Education Policy and Management, 25(2), 147-159. DOI: https://doi.org/10.1080/1360080032000122624

Rivera-Camino, J. & Ayala, V. M. (2010). Market orientation at universities: construct and exploratory validation. Innovar, 20(36), 1-15

Ross, M., Grace, D. & Shao, W. (2012). Come on higher education, get on with programme! A study of market orientation in international student recruitment. Educational Review, 1, 1-22.

Sarua. (2012). Higher education profiling in the SADC region. Higher Education Institution. Pretoria.

Slater, S. F. & Narver, J. C. (1995). Market orientation and learning organization. Journal of Marketing, 59, 63-74. DOI: https://doi.org/10.1177/002224299505900306

Teo, T. S. H. & King, W. R. (1996). Assessing the impact of integrating business planning and IS planning. Information & Management, 30(6), 309-321. DOI: https://doi.org/10.1016/S0378-7206(96)01076-2

Tomaskova, E. (2008). Internal barriers of market orientation application. Economics and Management, 14, 1-6

Trueman, K. (2004). Market-orientation and local government. barriers and constraints. Political Studies Association, (1), 1-12.

Venkatesan, V. S. (2000). The applicability of some market orientation models to Australians SMEs: an empirical study ANZMAC 2000:1314-1318

Voon, B. H. (2008). SERVMO: a measure for service-driven market orientation in higher education. Journal of Marketing for Higher Education, 17(2), 216-237. DOI: https://doi.org/10.1080/08841240801912583

Zebal, M. A. & Goodwin, D. R. (2012). Market orientation and performance in private universities. Marketing Intelligence and Planning, 30(3), 339-357. DOI: https://doi.org/10.1108/02634501211226302

Zebal, M. A. (2003). Market orientation synthesis model for a developing country: the case of Bangladesh, PhD Thesis Victoria University of Technology: Melbourne Australia.

Published
2016-04-05
How to Cite
Mokoena, B. A., & Dhurup, M. (2016). Market Orientation Determinants: Reflections from Academics in Universities of Technology in South Africa. Journal of Economics and Behavioral Studies, 8(1(J), 6-17. https://doi.org/10.22610/jebs.v8i1(J).1201
Section
Research Paper