Home Service Dominant Logic and Market Orientation: A Case Study of Brazilian Agribusiness Firms
Article
Licensed
Unlicensed Requires Authentication

Service Dominant Logic and Market Orientation: A Case Study of Brazilian Agribusiness Firms

  • Mariangela Duarte Soares Albuquerque and Tomas Sparano Martins ORCID logo EMAIL logo
Published/Copyright: April 22, 2022

Abstract

The purpose of this paper is to evaluate the Service Dominant Orientation (S-DO), Responsive Market Orientation (RMO) and Proactive Market Orientation (PMO) complementary effect on Brand Performance in the Brazilian agribusiness B2B context. We conducted a survey with 147 Brazilian agribusiness firms that sell supplies directly to farmers. The data were analysed through a three-model hierarchical regression analysis. The results indicated that S-DO complemented by PMO and RMO impacts and explains brand performance at more significant levels than S-DO by itself. The complementary effect is highlighted when firms give voice and partner up with their customers that leads the proactively innovative research based on their latent needs. The study allows agribusiness marketing managers to reflect on the insertion of the B2B customer in the firm’s value co-creation process through a guided innovative research process.


Corresponding author: Tomas Sparano Martins, Department of Business, Universidade Federal do Parana, Curitiba, 80060-000, Brazil, E-mail:

References

Aaker, D. A. 1996. Building Strong Brands. New York: The Free Press.Search in Google Scholar

Atuahene-Gima, K., and A. Ko. 2001. “An Empirical Investigation of the Effect of Market Orientation and Entrepreneurship Orientation Alignment on Product Innovation.” Organization Science 12 (1): 54–74, https://doi.org/10.1287/orsc.12.1.54.10121.Search in Google Scholar

Atuahene-Gima, K., S. F. Slater, and E. M. Olson. 2005. “The Contingent Value of Responsive and Proactive Market Orientations for New Product Program Performance.” Journal of Product Innovation Management 22 (6): 464–82, https://doi.org/10.1111/j.1540-5885.2005.00144.x.Search in Google Scholar

Baack, D. W., R. T. Wilson, M. M. van Dessel, and C. H. Patti. 2015. “Advertising to Businesses: Does Creativity Matter?” Industrial Marketing Management 55: 169–77.10.1016/j.indmarman.2015.10.001Search in Google Scholar

Boso, N., V. M. Story, and J. W. Cadogan. 2013. “Entrepreneurial Orientation, Market Orientation, Network Ties, and Performance: Study of Entrepreneurial Firms in a Developing Economy.” Journal of Business Venturing 28 (6): 708–27, https://doi.org/10.1016/j.jbusvent.2013.04.001.Search in Google Scholar

Cadogan, J. W. 2012. “International Marketing, Strategic Orientations and Business Success Reflections on the Path Ahead.” International Marketing Review 29 (4): 340–8, https://doi.org/10.1108/02651331211242656.Search in Google Scholar

Cano, R. C., F. A. Carrillat, and F. Jaramillo. 2004. “A Meta-Analysis of the Relationship between Market Orientation and Business Performance: Evidence from Five Continents.” International Journal of Research in Marketing 21 (2): 179–200, https://doi.org/10.1016/j.ijresmar.2003.07.001.Search in Google Scholar

Chang, Y., X. Wang, and D. B. Arnett. 2018. “Enhancing Firm Performance: The Role of Brand Orientation in Business-To-Business Marketing.” Industrial Marketing Management Journal 72: 17–25, https://doi.org/10.1016/j.indmarman.2018.01.031.Search in Google Scholar

Cepea - Centro de Estudos Avançados em Economia Aplicada. 2019. PIB Do Agronegócio Brasileiro. https://www.cepea.esalq.usp.br/br/pib-do-agronegocio-brasileiro.aspx (accessed May 15, 2019).Search in Google Scholar

Combs, J. G., T. R. Crook, and C. L. Shook. 2005. “The Dimensionality of Organizational Performance and its Implications for Strategic Management Research.” Research Methodology in Strategy and Management 2 (05): 259–86.10.1016/S1479-8387(05)02011-4Search in Google Scholar

Costello, A. B., and J. Osborne. 2005. “Best Practices in Exploratory Factor Analysis: Four Recommendations for Getting the Most from Your Analysis.” Practical Assessment, Research and Evaluation 10 (7): 1–9.Search in Google Scholar

Day, G. 1999. “Misconceptions about Market Orientation.” Journal of Market Focused Management 4 (1): 5–16, https://doi.org/10.1023/a:1009882027377.10.1023/A:1009882027377Search in Google Scholar

Davis, D. F., S. L. Golicic, and A. J. Marquardt. 2008. “Branding a B2B Service: Does a Brand Differentiate a Logistics Service Provider?” Industrial Marketing Management 37 (2): 218–27, https://doi.org/10.1016/j.indmarman.2007.02.003.Search in Google Scholar

Deshpandé, R., and J. U. Farley. 1998. “Measuring Market Orientation: Generalization and Synthesis.” Journal of Market-Focused Management 2 (3): 213–32.10.1023/A:1009719615327Search in Google Scholar

Deutscher, F., F. B. Zapkau, C. Schwens, M. Baum, and R. Kabst. 2015. “Strategic Orientations and Performance: A Configurational Perspective.” Journal of Business Research 69 (2): 849–61.10.1016/j.jbusres.2015.07.005Search in Google Scholar

Fuller, C. M., M. J. Simmering, G. Atinc, Y. Atinc, and B. J. Babin. 2016. “Common Methods Variance Detection in Business Research.” Journal of Business Research 69 (8): 3192–8, https://doi.org/10.1016/j.jbusres.2015.12.008.Search in Google Scholar

Govindarajan, V., P. K. Kopalle, and E. Danneels. 2011. “The Effects of Mainstream and Emerging Customer Orientations on Radical and Disruptive Innovations.” Journal of Product Innovation Management 28 (s1): 121–32, https://doi.org/10.1111/j.1540-5885.2011.00865.x.Search in Google Scholar

Gronroos, C. 2006. “Adopting a Service Logic for Marketing.” Marketing Theory 6 (3): 317–33, https://doi.org/10.1177/1470593106066794.Search in Google Scholar

Hair, Jr. J. F., M. Gabriel, and V. Patel. 2014a. “AMOS Covariance-Based Structural Equation Modeling (CB-SEM): Guidelines on its Application as a Marketing Research Tool.” Brazilian Journal of Marketing 13 (2), https://doi.org/10.5585/remark.v13i2.2718.Search in Google Scholar

Hair, Jr. J. F., G. T. M. Hult, C. M. Ringle, and M. Sarstedt. 2014b. Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Los Angeles: SAGE.Search in Google Scholar

He, J., H. Huang, and W. Wu. 2018. “Influence of Interfirm Brand Values Congruence on Relationship Qualities in B2B Contexts.” Industrial Marketing Management 72 (July 2017): 161–73, https://doi.org/10.1016/j.indmarman.2018.02.015.Search in Google Scholar

Ho, J., C. Plewa, and V. Nhat. 2016. “Examining Strategic Orientation Complementarity Using Multiple Regression Analysis and Fuzzy Set QCA.” Journal of Business Research 69 (6): 2199–205.10.1016/j.jbusres.2015.12.030Search in Google Scholar

Homburg, C., M. Klarmann, and J. Schmitt. 2010. “Brand Awareness in Business Markets: When is it Related to Firm Performance?” International Journal of Research in Marketing 27 (3): 201–12, https://doi.org/10.1016/j.ijresmar.2010.03.004.Search in Google Scholar

Iyer, P., A. Davari, S. Srivastava, and A. K. Paswan. 2020. “Market Orientation, Brand Management Processes and Brand Performance.” The Journal of Product and Brand Management 30 (2): 197–214, doi:https://doi.org/10.1108/jpbm-08-2019-2530.Search in Google Scholar

Kandemir, D., A. Yaprak, and S. T. Cavusgil. 2006. “Alliance Orientation: Conceptualization, Measurement, and Impact on Market Performance.” Journal of the Academy of Marketing Science 34 (3): 324–40, https://doi.org/10.1177/0092070305285953.Search in Google Scholar

Karpen, I. O., L. L. Bove, B. A. Lukas, and M. J. Zyphur. 2015. “Service-Dominant Orientation: Measurement and Impact on Performance Outcomes.” Journal of Retailing 91 (1): 89–108, https://doi.org/10.1016/j.jretai.2014.10.002.Search in Google Scholar

Karpen, I. O., L. L. Bove, and B. A. Lukas. 2011. “Linking Service-Dominant Logic and Strategic Business Practice: A Conceptual Model of a Service-Dominant Orientation.” Journal of Service Research 15 (1): 21–38, https://doi.org/10.1177/1094670511425697.Search in Google Scholar

Keller, K. L. 1993. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of Marketing 57 (1): 1–22, https://doi.org/10.1177/002224299305700101.Search in Google Scholar

Kohli, A. K., B. J. Jaworski, and A. Kumar. 1993. “MARKOR: A Measure of Market Orientation.” Journal of Marketing Research 30 (4): 467, https://doi.org/10.2307/3172691.Search in Google Scholar

Kumar, V., E. Jones, R. Venkatesan, and R. P. Leone. 2011. “Is Market Orientation a Source of or Simply the Cost of Competing.” Journal of Marketing 75: 16–30, https://doi.org/10.1509/jmkg.75.1.16.Search in Google Scholar

Levitt, T. 1980. “Marketing Success Through Differentiation-of Anything.” Harvard Business Review 58 (1): 83–91.Search in Google Scholar

Lynch, J., and L. De Chernatony. 2004. “The Power of Emotion: Brand Communication in Business-to-Business Markets.” Journal of Brand Management 11 (5): 403–19, https://doi.org/10.1057/palgrave.bm.2540185.Search in Google Scholar

Markus, G., D. P. Mertens, and R. O. Murphy. 2005. “Customers as Good Soldiers: Extending Organizational Citizenship Behavior Research to the Customer Domain.” Journal of Management 31 (1): 415–33.10.1177/0149206304271375Search in Google Scholar

Marra, R., G. S. Souza, and E. R. A. Alves. 2013. “Papel da embrapa no desenvolvimento Do agronegócio.” Revista de Economia e Agronegócio 11 (1): 73–114.10.25070/rea.v11i1.214Search in Google Scholar

Mele, C., and F. Polese. 2011. “Key Dimensions of Service Systems in Value-Creating Networks.” In The Science of Service Systems, 37–59. Boston: Springer.10.1007/978-1-4419-8270-4_3Search in Google Scholar

Michell, P., J. King, and J. Reast. 2001. “Brand Values Related to Industrial Products.” Industrial Marketing Management 30 (5): 415–25, https://doi.org/10.1016/s0019-8501(99)00097-8.Search in Google Scholar

Monaco Neto, L. C. 2019. “Uma proposta de método de inteligência competitiva para empresas de insumos do agronegócio. 194 f. Thesis (PhD in Business). Ribeirão Preto: Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto, Universidade de São Paulo.Search in Google Scholar

Montiel-Campos, H. 2018. “Entrepreneurial Orientation and Market Orientation Systematic Literature Review.” Journal of Research in Marketing and Entrepreneurship 20 (2): 292–322, doi:https://doi.org/10.1108/JRME-09-2017-0040.Search in Google Scholar

Morgan, N., D. Vorhies, and C. Mason. 2009. “Market Orientation, Marketing Capabilities, and Firm Performance.” Strategic Management Journal 30 (8): 909–20, https://doi.org/10.1002/smj.764.Search in Google Scholar

Narver, J. C., and S. F. Slater. 1990. “The Effect of a Market Orientation on Business Profitability.” Journal of Marketing 54 (4): 20, https://doi.org/10.2307/1251757.Search in Google Scholar

Narver, J. C., and S. F. Slater. 1998. “Additional thoughts on the measurement of market orientation: a comment on Deshpande and Farley.” Journal of market-focused management 2 (3): 233–6, doi:https://doi.org/10.1023/A:1009747516235.Search in Google Scholar

Narver, J. C., S. F. Slater, and D. L. Maclachlan. 2004. “Responsive and Proactive Market Orientation and New-Product Success.” Journal of Product Innovation Management 21 (5): 334–47, https://doi.org/10.1111/j.0737-6782.2004.00086.x.Search in Google Scholar

Payne, A. F., K. Storbacka, and P. Frow. 2008. “Managing the Co-creation of Value.” Journal of the Academy of Marketing Science 36 (1): 83–96, https://doi.org/10.1007/s11747-007-0070-0.Search in Google Scholar

Persson, N. 2010. “An Exploratory Investigation of the Elements of B2B Brand Image and its Relationship to Price Premium.” Industrial Marketing Management 39 (8): 1269–77, https://doi.org/10.1016/j.indmarman.2010.02.024.Search in Google Scholar

Ranjan, K. R., and S. Read. 2016. “Value Co-creation: Concept and Measurement.” Journal of the Academy of Marketing Science 44 (3): 290–315, https://doi.org/10.1007/s11747-014-0397-2.Search in Google Scholar

Schweiger, S. A., T. R. Stettler, A. Baldauf, and C. Zamudio. 2019. “The Complementarity of Strategic Orientations: A Meta‐analytic Synthesis and Theory Extension.” Strategic Management Journal 40 (11): 1822–51, https://doi.org/10.1002/smj.3042.Search in Google Scholar

Tan, M., and Z. Liu. 2014. “Paths to Success: An Ambidexterity Perspective on How Responsive and Proactive Market Orientations Affect SMEs’ Business Performance”. Journal of Strategic Marketing 22 (5): 420–41, https://doi.org/10.1080/0965254x.2013.876084.Search in Google Scholar

Tynan, C., S. Mckechnie, and C. Chhuon. 2010. “Co-creating Value for Luxury Brands.” Journal of Business Research 63 (11): 1156–63, https://doi.org/10.1016/j.jbusres.2009.10.012.Search in Google Scholar

Vargo, S. L., and R. F. Lusch. 2004. “Evolving to a New Dominant Logic for Marketing.” Jornal of Marketing 68 (1): 1–17, https://doi.org/10.1509/jmkg.68.1.1.24036.Search in Google Scholar

Vargo, S. L., and R. F. Lusch. 2008. “From Goods to Service(s): Divergences and Convergences of Logics.” Industrial Marketing Management 37 (3): 254–9, https://doi.org/10.1016/j.indmarman.2007.07.004.Search in Google Scholar

Vargo, S. L., and R. F. Lusch. 2017. “Service-dominant Logic 2025.” International Journal of Research in Marketing 34 (1): 46–67, https://doi.org/10.1016/j.ijresmar.2016.11.001.Search in Google Scholar

Vargo, S. L., K. Koskela-Huotari, and J. Vink. 2020. Service-dominant Logic: Foundations and Applications. The Routledge handbook of service research insights and ideas, 3–23. Abingdon: Routledge.10.4324/9781351245234-1Search in Google Scholar

Wang, Y., H. Zhang, and M. Song. 2020. “Pure or Ambidextrous Strategy? A Study of Responsive and Proactive Market Orientations in Industrial Firms.” Journal of Business & Industrial Marketing 35 (6): 1001–10, doi:https://doi.org/10.1108/JBIM-04-2019-0152.Search in Google Scholar

Wilden, R., M. A. Akaka, I. O. Karpen, and J. Hohberger. 2017. “The Evolution and Prospects of Service-Dominant Logic: An Investigation of Past, Present, and Future Research.” Journal of Service Research 20 (4): 345–61, https://doi.org/10.1177/1094670517715121.Search in Google Scholar

Wilden, R., and S. Gudergan. 2017. “Service-dominant Orientation, Dynamic Capabilities and Firm Performance.” Journal of Service Theory and Practice 27 (4): 808–32, https://doi.org/10.1108/jstp-04-2016-0077.Search in Google Scholar

Yiu, H. L., E.W.T. Ngai, and C. F. Lei. 2020. “Impact of Service‐Dominant Orientation on the Innovation Performance of Technology Firms: Roles of Knowledge Sharing and Relationship Learning.” Decision Sciences 51 (3): 620–54.10.1111/deci.12408Search in Google Scholar

Received: 2021-07-22
Accepted: 2022-03-29
Published Online: 2022-04-22

© 2022 Walter de Gruyter GmbH, Berlin/Boston

Downloaded on 24.10.2025 from https://www.degruyterbrill.com/document/doi/10.1515/roms-2021-0054/html
Scroll to top button