The Effect of Market Orientation on Business Performance of the Companies Designing and Manufacturing Clean Rooms

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American Journal of Applied Sciences 6 (7): 1373-1379, 2009
ISSN 1546-9239
© 2009 Science Publications

The Effect of Market Orientation on Business Performance of the
Companies Designing and Manufacturing Clean Rooms

Amirhossein Amirkhani and Rasool Sanavi Fard
Payamnoor University, Garmsar, Iran

Abstract: Problem statement: Theatrically claimed that there is relationship between market
orientation and improvement of business performance of the companies, but the regular empirical
research is carried out to understand deeply and prove these claims especially in Iranian environment.
Considering the importance of market orientation, as well as lack of information on its effects, this
study considered its effect on the business performance of companies engaging in clean room industry
in Iran, while mentioning different viewpoints and theories on the market orientation. Approach: This
study was a descriptive-survey, correlation-based research. Its population includes 110 units, from which,
80 units were selected as sample with using simple random sampling. Finally all study hypotheses were
confirmed. At the present study, the different components were extracted for measuring business
performance contains: Company effectiveness on the market, including success of new product, attracting
the customer, keeping the customer and product quality. Domination over the market, including sale
volume, sale growth, market share, financial performance, including profit, cash flows and rate of capital
return. Results: The variables correlation coefficients in each of research hypothesis were respectively
0.671, 0.709, 0.659 and 0.517, which considering the acceptance criterion is 0.50 it can be concluded that
there is a high correlation coefficient between each one variables. Finally all study hypotheses were
confirmed. Conclusion: The positive and significant relationship between market orientation and
business performance of the companies designing and manufacturing clean rooms was established though
testing the principal hypothesis. In other words, it can be said that market orientation viewpoint on each
of companies manufacturing clean rooms had positive influence on their business performance.
Recommendations had been submitted as per market orientation components.

Key words: Customer orientation, competitor orientation and inter-department collaboration

INTRODUCTION
collaboration was viewed as a group culture aimed at

maintaining a high level of firm performance by

From a historical viewpoint, market orientation is
effectively and efficiently executing actions required
defined as a stage of organization growth or as a level
gaining customer value[3]. The clean room industry was
reflecting the organizational maturity-the definition
chosen for study in this research. By definition, “the
which is confirmed by different writers such as Baker,
clean room is a room with one or some region(s)
Kotler and Dalgic. Looking at the market orientation as
controlling the particles suspended in the environment”.
the final stage of business organization development,
Manufacturing the rooms of this kind which are widely
they believe market orientation has been created to
used in different industries (including electronics,
develop the different business trends[1] Market-
computer, precision instrumentation, pharmacology,
orientation culture is a group culture designed to create
medical equipments and food industry) has a
higher customer value by executing the required actions
remarkable growth in advanced countries during the
with the most efficient and effective means available.
recent years. The conditions without particle and
Thereby maintaining a high level of firm performance.
bacterial containments to be provided by clean rooms

Therefore, market-oriented firms seek ways to
are considered as the basis of many modern
provide added value to customers while simultaneously
manufacturing industries.
lowering the cost of the said product or service[2]

Today, the most important challenge for the
Market-oriented
culture
composed
of
customer
consuming industries which move according to
orientation, competitor orientation and inter-department
universally accepted standards is to inform from the
Corresponding Author: Rasool Sanavi Fard, Payamnoor University, Rahahan, Garmsar, Iran

Tel: +982324230993 Fax: +982324229991
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Am. J. Applied Sci., 6 (7): 1373-1379, 2009

latest achievements and technical knowledge in order to
• Proposing practical ways for developing the
offer customer-intended products with suitable quality
viewpoint on market orientation and its effects (for
in difficult conditions.
any of the companies engaging in clean room

Using the clean rooms enables the consuming
industry)
industries to produce their intended products with a

quality in conformity with the latest universally
Methods and approach: The present study is based on
accepted standards through creating environmental
an applied goal of which the method is considered as a
conditions without different contaminations.
descriptive-survey and correlation-based method. The

Furthermore by designing and manufacturing the
managing directors of Iranian companies designing and
different kinds of clean rooms through suitable quality
manufacturing clean rooms (as active plants during the
and classifying along with the used technology, the
study time), were selected as the study population and
consuming industries are able to pace according to the
110 companies were identified, after referring Tehran
customers’ opinions and demands, while observing the
Industries and Mines Office. Due to its low partiality
international standards. So the Iranian companies arrived
and high generalizablity, the random sampling method
in the newly established industry must have inter-
with size of 80 records was selected for sampling. In
organization collaboration in order to have presence in
order to calculate sample size, Bernoulli's binomial
the market and meet the important, future needs of
distribution which is expressed by the following
market and customers, while fulfilling their satisfaction.
equation, was used:

By identifying the market threats and opportunities

as well as the competitors’ strategies, they must be able
2
z NPq
=
to response in time to the competitors’ activities, while
n

2
2
d (N −1) + z Pq
having a continuous presence in the market. It seems

necessary to have a good viewpoint on market
Where:
orientation (with competitive advantage of fast response
z = 1.96 is the standard number at the confidence
to needs of market and customers).
coefficient of 95%

After the searches carried out, two papers under
p = 0.5, the proportion of people believing the
titles:
influence of market orientation on business


performance

The influence of market orientation culture on the
q = 0.5, the proportion of people without any belief
business performance of companies engaging in
about the influence of market orientation on
manufacturing automobile parts in Mashhad

business performance

A new model for determining the scope of the
d = 0.06, the degree of accuracy for generalization of
market orientation influence on the trade
the sample group’s results to the population
performance, with considering the marketing
N = 110, the number of population; p = 0.05 and q = 1-p
capabilities in chemical industries
n = The number of sample[5]



However considering the fact that the selected

At this study, two questionnaires were used for
industry in the study is recently arrived in the country,
gathering data: one for measuring market orientation
no research is carried out about and there is no history
and another for measuring business performance of the
on the subject above.
sample companies. The influence of market orientation

This study is intended to realize the market
on the company performance was surveyed by using the
orientation effects on the performance of the companies
Narver and Slater Questionnaire. The scale for
designing and manufacturing clean rooms in Iran,
measuring the mentioned questionnaires is Ligret’s
which subdivided the following goals:
five-point Scale (from very low to very high) while 25

and 10 questions were designed to be considered for
• Studying on the market orientation and familiarity
market
orientation
and
business
performance,
with its characteristics
respectively.
• Gathering a collection of theoretical concepts and

In addition to studying numerous books and papers
different models on the market orientation
as well as profiting the opinions of my tutor and
• Investigating the possible relationship between
educating consultant, twenty questionnaires-as pretest-
market orientation and domination on the market,
ere given to the managers of companies designing and
of the companies engaging in clean room industry
manufacturing clean rooms.
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Am. J. Applied Sci., 6 (7): 1373-1379, 2009


After gathering the questionnaires, the obtained
performance. The indexes related to the market
data were used to calculate kronbach alpha by using the
orientation are Customer orientation, Competitor
statistical analysis software (SPSS)[6] Kronbach alpha
orientation and inter-department collaboration while the
calculated for market orientation and business
business performance indexes consist of customer
performance questionnaires were respectively 0.079
performance, market performance and financial
and 0.094, which indicated high reliability of the
performance that all of them with their components
questionnaires.
were mentioned in Table 1[7].

At the present study, after reviewing most of the

studies in the prior literature and considering the type of
RESULTS
study population, the different components (as

following categories) were extracted for measuring

Considering the statistical results of the study,
business performance:
because the highest amount of correlation is related to the


variable of “domination over the market" for first sub-
Financial performance, including profit, cash
flows, rate of capital return
hypothesis, companies manufacturing clean rooms as
• Domination over the market, including sale
well as the related organizations are recommended that in
volume, sale growth and market share
order to obtain better and more suitable performance,
• Company effectiveness on the market, including
more attention must be drawn to the components of sale
success of new product, attracting the customer,
volume, sale growth and market share.
keeping the customer and product quality


MATERIALS AND METHODS


In order to answer the study questions and test the
hypotheses, it is necessary to distinguish the variables,
which are considered as principal idea and changeable
concept in any scientific research. These variables
which can be divided into four categories in terms of
their relationships and types are as the following
variables at this study:

• Dependent variables (factors whose value is
influenced by one or several independent variables)
• Independent variables or varied variables (by
which
the
independent
variables
can
be
described)[5]



According to Fig. 1, the principal variables of the

model include the market orientation and the business
Fig. 1: Research theatric

Table 1: Principle index of model[8]
Indexes
Components
indexes
Components
Customer orientation
Studying customer satisfaction regularly
Firm effectiveness
keeping the customer-

Recognition of customer needs
on the market
attracting the custom

Firm obligation against customers-

Product quality



Success of new product
Competitor orientation
Reaction against competitor
Domination over
Sale volume

Choosing market opportunity
the market
Market share

Base on competition power

Sale growth

Distributing policy in firm


Inter-department
Compiling marketing strategies and
financial performance
Firm profit
Collaboration
plants through of department's collaboration

Cash flows

Distributing customer experience among

Rate of capital return

Departments

Inter-department collaboration for

Satisfying customer needs
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Am. J. Applied Sci., 6 (7): 1373-1379, 2009

DISCUSSION
Table 2: The static of T test-Correlation coefficient between market

orientation and the components of “domination over the
market” variable

The discussion will be followed by investigating

Research
Accepted
and analyzing the study findings concerning the
Item
result
criterion
Result
principal hypotheses and sub-hypotheses.
Level of significance
0.000
<0.05%
Ok

Sale volume
0.712
>0.50
Ok
First sub-hypothesis: There is a positive relationship
Sale growth
0.692
>0.50
Ok
between market orientation and Domination over the
Market share
0.723
>0.50
Ok
market, of companies manufacturing clean room.


Table 3: The statistic of T test- Correlation coefficient between market
orientation variable and the components of effectiveness in
Hypotheses:
market for index of the effectiveness in market
Ho: ρ = 0 there is an independent relationship between

Research
Accepted
market orientation and domination over the market, of
Item
result
criterion
Result
companies manufacturing clean rooms.
Level of significance
0.000
<0.05%
Ok

Success of new product
0.568
>0.50
Ok
Keeping customer
0.772
>0.50
Ok
H1: ρ ≠ 0 there is a positive relationship between
Attracting customer
0.684
>0.50
Ok
market orientation and domination over the market, of
Product quality
0.576
>0.50
Ok
companies manufacturing clean rooms.


The statistical analysis of two variables shows that
Hypotheses:
correlation coefficient between them is 0.709. On the
Ho: ρ = 0 there is an independent relationship between
other hand, by using T test, we tested the statistical
market orientation and effectiveness of companies
significance of the relation for the level of significance
manufacturing clean rooms in market.
of 0.05%, which was confirmed.


Degree of freedom is 78 and the statistic of test is
H1: ρ ≠ 0 there is a positive relationship between
8.04 and because the level of significance is lesser
market orientation and effectiveness of companies
than 0.05%, the opposite hypothesis suggesting the
manufacturing clean rooms in market.
existence of a relationship between two factors will be

The Correlation coefficient, obtained from the
accepted.
statistical analysis, between them is 0.659. On the other

Many statistical analyses are performed on the
hand, On the other hand, by using the T test, we tested
variable of “domination over the market”. In this
the statistical significance of this relation for level of
manner the relationship between market orientation.
significance of 0.05, which was confirmed.

And all factors forming the variable of domination

Degree of freedom is 78 and the test statistic is
over the market was measured and shown in Table 2.
equal to 9.494 and because the level of significance is
The correlation coefficient between market orientation
lesser than 0.05%, the opposite hypothesis suggesting
and each one of the variables related to domination
the existence of a relationship between two factors will
over the market (including sale volume, sale growth
be accepted.
and market share) were respectively 0.712, 0.692 and

The relationship between market orientation and
0.723, which considering the acceptance criterion of
the components of effectiveness, in the market, of the
0.50 it can be concluded that there is a high
companies designing and manufacturing clean rooms
correlation
coefficient
between
each
one
of
(including success of new product, attracting customer,
dimensions of the dependent variable of domination
keeping customer and product quality) has correlation
over the market.
coefficients equal to 0.568, 0.772, 0.684 and 0.576,

Therefore, it was concluded that for Iranian
respectively than was shown in Table 3. Considering
companies designing and manufacturing clean rooms
the acceptance criterion of 0.50, it can be concluded
(as population of the present study), higher attention to
that there is a high correlation coefficient between each
market orientation implies an improvement on company
one of the dimensions of dependent variable of
performance concerning its domination over the clean
domination on market.
room market.

Therefore, it was concluded that, for the companies

designing and manufacturing clean rooms, higher
Second
sub-hypothesis:
There
is
a
positive
attention to market orientation implies an increase in
relationship
between
market
orientation
and
their effectiveness (success of new product, keeping the
effectiveness of companies manufacturing clean
present and future customers, attracting new customers
rooms.
and quality of offer able products.
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Am. J. Applied Sci., 6 (7): 1373-1379, 2009

Table 4: The statistic of T test-correlation coefficient between market
Table 5: The statistic of T test-Correlation coefficient between market
orientation variable and the components of financial
orientation and business performance variables
performance variable

Research
Accepted

Research
Accepted
Item
result
criterion
Result
Item
result
criterion
Result
Level of significance
0.000
<0.05%
Ok
Level of significance
0.008
<0.05
Ok
Business performance
0.671
> 0.50
Ok
Profit
0.501
>0.50
Ok

Cash flows
0.529
>0.50
Ok
Rate of capital return
0.522
>0.50
Ok
Hypotheses:

Ho: ρ = 0 there is an independent relationship between
market orientation and business performance of
Third sub-hypothesis: There is a positive relationship
between market orientation and financial performance
companies manufacturing clean rooms.
of companies manufacturing clean rooms.


H1: ρ ≠ 0 there is a positive relationship between
Hypotheses:
market orientation and business performance of
H
companies manufacturing clean rooms.
o: ρ = 0 there is an independent relationship between
market orientation and financial performance of

The statistical analysis established the positive and
companies manufacturing clean rooms.
significant relationship between market orientation and

business performance and the correlation coefficient
between these two variables is determined to be
H1: ρ ≠ 0 there is a positive relationship between
market orientation and financial performance of
0.671.as shown in Table 5. On the other hand, by using
companies manufacturing clean rooms.
T test, we tested the statistical significance of the

The Correlation coefficient obtained from the
relation for level of significance of 0.05%, which was
statistical analysis between two mentioned variables,
confirmed.
i.e., market orientation and financial performance, is

The discussion will be followed by computing the
0.517. On the other hand, by using t test, we tested the
correlation coefficient between market orientation and
statistical significance of the relation for level of
business performance and considering the fact that the
significance of 0.05, which was confirmed.
calculated value is higher than acceptance criterion, it

Degree of freedom is 78 and the test statistic is
indicates the strong correlation coefficient between
equal to 9.494 and because the level of significance, is
them.
lesser than 0.008 (as per Table 4), the opposite

Degree of freedom is 78 and the statistic of test is
hypothesis suggesting the existence of a relationship
equal to 8.04 and because the level of significance is
between two factors will be accepted.
lesser than 0.05 too, the opposite hypothesis suggesting

According to Result of Table 4, the relationship
the existence of a relationship between two factors will
between market orientation variable and all above-
be accepted.
mentioned factors forming the financial performance

was analyzed, on which the correlation coefficient
CONCLUSION
between the variables of profit, cash flows and rate of

capital return were respectively 0.501, 0.529 and 0.522.

The positive and significant relationship between
So considering the acceptance criterion of 0.50 it can be
market orientation and business performance of the
concluded that there is a high correlation coefficient
companies designing and manufacturing clean rooms
between each one of dimensions of the dependent
was established though testing the principal hypothesis.
variable of financial performance.
The summery of research hypothesis was shown in

Therefore,
higher
attention
drawn
by
the
Table 6. That all of hypotheses were confirm.
companies designing and manufacturing clean rooms to

In other words, it can be said that market
market orientation implies an improvement on financial
orientation
viewpoint
on
each
of
companies
performance of the companies, not be to the extent of
manufacturing clean rooms has positive influence on
the improvement of company’s domination over market
their business performance. By analyzing the output
and improvement of effectiveness in market.
resulting from testing the sub-hypotheses, it can be

concluded that the market orientation viewpoint has
The principal hypothesis: There is a positive
positive
influence
on
domination
over
active
relationship between market orientation and business
companies, effectiveness in market and their financial
performance.
performance in the clean room industry.
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Am. J. Applied Sci., 6 (7): 1373-1379, 2009

Table 6: Summery of research hypothesis
In the area of customer orientation:

Correlation
Accepted

Hypothesis
coefficient
criterion
Result
• The companies engaging in clean room industry
Principal hypothesis
0.671
0.5
OK
First sub-hypothesis
0.709
0.5
OK
must
done
proper
measures
on
how
to
Second sub-hypothesis
0.659
0.5
OK
communicate with the consumers in the area of
Third sub-hypothesis
0.517
0.5
OK
market
orientation
and
marketing
through
∗: High correlation coefficient is (0.65-0.85), Suitable correlation
obtaining the customers’ opinions, participating
coefficient is (0.35-0.65) and weak correlation coefficient is (0.00-
closely with each one of the costumers, creating
0.35)[4]
commitment and confidence in them

• Maintenance of system for following dynamically

As it was mentioned before, market orientation
the customers’ complaints and special attention to
focuses on the three sectors, i.e., customer, competitors
after sale services must be considered as very
and collaboration inter-department, for which the
important case concerning the customers
following suggestions can be proposed.
• Offering service via personal attention to the

customers, affability to them and having regular
In the area of competitor orientation:
communication

• Knowing the customers’ viewpoints, studying
• The companies engaging in this industry must
environmental
changes
and
the
consuming
consider the necessary measures for removing all
industries’ preferences
weaknesses related to Competitor orientation (in
• Paying attention to dissatisfactions of the
the area of market orientation) through faster,
customers as well as trying to solve them, along
suitable response to competitors’ measures,
with perceiving the importance of the subject by
identifying the strategies of competitors in each
organization sectors
one of the consuming industries markets as well as

identifying present opportunities in clean room
In the area of inter-department collaboration:
market, based on their competitive strength



Considering the fact that the clean room industry is
• The personnel of different sections of the
counted as a newly established industry and there
organization and other company resources must be
is increasing attack of new competitors to this
coordinated in the manner that can create value for
industry, as well as intense competition between
the customers through collaboration and help
companies engaging in, identifying regularly the
together
competitors’ strengths and weaknesses can provide
• Emphasis on the importance of inter-department
worthy help for the companies
collaboration
must
be
considered
through
• Studying marketing variables (including price,
participation of the organization sections in
advertisements, how to market product and so
compiling the company plans and strategies,
forth) in a regular and periodic manner, can yield
balanced state on how to utilize the recourses
suitable information to the companies in order to
Between sections, distribution of information
identify measures of the competitors
obtained from customer experiences between
• Considering the fact that in order to increase the
sections, as well as knowledge on offering the
competitive strength on market, all required factors
superior value to the customer
must
be
mobilized,
distributing
competitor
• After collecting, analyzing and organizing the
information between other sections of the
information, they which can be about market
organization, along with holding regular sessions
(customers, competitors and environment), must be
of senior managers concerning the competitors, can
given to different sections and offices of the
provide worthy help for the companies
company to be utilized and used in their own
• Creating pattern from the competitors’ strengths
decisions
(considering it own competitive power), using

optimally from their weaknesses as well as timely
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ISBN: 964-96964-0-7, pp: 45-47.
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