Abdulmonem M. Al-Shirawi and Said El Hajjar, Ahlia University, Kingdom of Bahrain
Charles Dennis, University of Lincoln, UK
Purpose: This paper attempts to empirically develop a validated structural equation model (SEM) to measure the level of market orientation in a resource-based economy among the financial services providers.
Design/methodology/approach: A structural equation model has been developed and validated with four constructs, namely: corporate culture, strategy formulated and implemented, structure and systems employed, and market-orientated activities. Each of these identified constructs is measured by three items apart from the ‘strategy formulated and implemented’ construct, which is measured by four items. In addition, four hypotheses were tested.
Findings: This study provides evidence that market-oriented corporate culture mediates the strategy formulated and implemented in response to the customers’ needs and expectations.
Originality/value: Despite the fact that several models were developed and tested in different contexts, this model has been validated through the development of a structural equation model. However, although several researchers have argued the importance of the role played by the market-oriented corporate culture, this study provides evidence that the major role of such constructs is the mediation of the business organizations designed and implemented response to meet the identified customers’ needs and expectations.
Keywords: Market orientation, Service marketing, Resource-based economy, Structural Equation Model