Market Orientation Model in Indonesia Special Autonomy Regional Government

https://doi.org/10.35912/ijfam.v4i3.1241
Published: Dec 28, 2022

Abstract:

Purpose: This study aimed to inspect the effect of information technology infrastructure on market orientation. It also intended to examine the impact of market orientation on organizational achievement in Special Autonomy Regional Government.

Research methodology: The study adopted a quantitative research design and obtained samples using cluster and stratified random sampling. The samples were determined on the Gross Regional Domestic Product (GRDP) size of Indonesia's five Special Autonomy Regional Governments. Questionnaire items were distributed to the targeted sample from two clusters of Jakarta Special Capital Province and West Papua Province. The two provinces have the highest and lowest GRDP, respectively. Data were collected from 210 respondents comprising the deputy employers in the regional work units of West Papua Province and Jakarta Special Capital. The data were analyzed using Structural equation modeling (SEM) partial least square (PLS) with LISREL 8.80.

Results: The results showed that information technology infrastructure affects market orientation, which mediates the impact of organizational performance of Indonesia's Special Autonomy Regional Government.

Keywords:
1. Information Technology Infrastructure
2. Market Orientation
3. Organizational Performance
Authors:
Ahmad Hudalil
Lecture of Postgraduate Master of Management Sang Bumi Ruwa Jurai University (Saburai) and Widyaiswara at Lampung Province Human Resource Development Agency, Indonesia
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Hudalil, A. (2022). Market Orientation Model in Indonesia Special Autonomy Regional Government. International Journal of Financial, Accounting, and Management, 4(3), 349–363. https://doi.org/10.35912/ijfam.v4i3.1241
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Vol. 4 No. 3 (2022): December
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

    References

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    Agarwal, S., Erramilli, M. K., & Dev, C. S. (2003). Market orientation and performance in service firms: role of innovation. Journal of Services Marketing.

    Au, A. K., & Tse, A. C. (1995). The effect of marketing orientation on company performance in the service sector: A comparitive study of the hotel industry in Hong Kong and New Zealand. Journal of International Consumer Marketing, 8(2), 77-87.

    Bharadwaj, A. S. (2000). A resource-based perspective on information technology capability and firm performance: an empirical investigation. MIS quarterly, 169-196.

    Bhatt, G., Emdad, A., Roberts, N., & Grover, V. (2010). Building and leveraging information in dynamic environments: The role of IT infrastructure flexibility as enabler of organizational responsiveness and competitive advantage. Information & Management, 47(7-8), 341-349.

    Bovaird, T. (1995). Urban Governance and Quality'of Life'Marketing in Strategies for Competition Between Sustainable Cities. Paper presented at the Regional Studies Association Conference, Gothenberg, Sweden.

    Byrd, T. A., & Turner, D. E. (2001). An exploratory examination of the relationship between flexible IT infrastructure and competitive advantage. Information & Management, 39(1), 41-52.

    Cano, C. R., Carrillat, F. A., & Jaramillo, F. (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.

    Caruana, A., Ramaseshan, B., & Ewing, M. T. (1999). Market orientation and performance in the public sector: The role of organizational commitment. Journal of Global Marketing, 12(3), 59-79.

    Cervera, A., Mollá, A., & Calder $ oAn, H. (2000). Market orientation: A framework for public institutions. Journal of Nonprofit & Public Sector Marketing, 7(1), 3-23.

    Cervera, A., Mollá, A., & Sanchez, M. (2001). Antecedents and consequences of market orientation in public organisations. European Journal of Marketing.

    Cowell, D. W. (1991). Mercadeo de servicios: un nuevo enfoque; del operativo al perceptivo.

    Creswell, J. W. (2014). Research design: qualitative, quantitative, and mixed methods approaches.

    Day, G. S. (1994). The capabilities of market-driven organizations. Journal of marketing, 58(4), 37-52.

    Denhardt, J. V., & Denhardt, R. B. (2015). The new public service revisited. Public Administration Review, 75(5), 664-672.

    Diamantopoulos, A., & Hart, S. (1993). Linking market orientation and company performance: preliminary evidence on Kohli and Jaworski's framework. Journal of Strategic Marketing, 1(2), 93-121.

    Duncan, N. B. (1995). Capturing flexibility of information technology infrastructure: A study of resource characteristics and their measure. Journal of management information systems, 12(2), 37-57.

    Ellis, P. D. (2006). Market orientation and performance: A meta?analysis and cross?national comparisons. Journal of Management studies, 43(5), 1089-1107.

    Fichman, R. G. (2004). Real options and IT platform adoption: Implications for theory and practice. Information systems research, 15(2), 132-154.

    Greenley, G. E. (1995). Market orientation and company performance: empirical evidence from UK companies. British journal of management, 6(1), 1-13.

    Hair, J. F. (2009). Multivariate data analysis.

    Han, J. K., Kim, N., & Srivastava, R. K. (1998). Market orientation and organizational performance: is innovation a missing link? Journal of marketing, 62(4), 30-45.

    Hayden, V. (1993). How to increase market orientation. Journal of Management in Medicine.

    Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing New challenges to international marketing: Emerald Group Publishing Limited.

    Indonesia, O. R. (2017). Laporan Hasil Inisiatif Ombudsman: Kepatuhan Penyelenggara terhadap Pemenuhan Komponen Standar Pelayanan sesuai Undang-Undang Nomor 25 Tahun 2009 tentang Pelayanan Publik

    Jas, P., & Skelcher, C. (2005). Performance decline and turnaround in public organizations: A theoretical and empirical analysis. British journal of management, 16(3), 195-210.

    Jaweng, R. E. (2011). Kritik Terhadap Desentralisasi Asimetris di Indonesia. Analisis CSIS, 160-176.

    Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: antecedents and consequences. Journal of marketing, 57(3), 53-70.

    Joseph, D., & Mehta, B. (2015). Market orientation and internal marketing. International Journal in Management & Social Science, 3(3), 76-84.

    Kara, A., Spillan, J. E., & DeShields Jr, O. W. (2004). An empirical investigation of the link between market orientation and business performance in nonprofit service providers. Journal of Marketing Theory and Practice, 12(2), 59-72.

    Kara, A., Spillan, J. E., & DeShields, O. W. (2005). The effect of a market orientation on business performance: a study of small?sized service retailers using MARKOR scale. Journal of small business management, 43(2), 105-118.

    Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market orientation: A meta-analytic review and assessment of its antecedents and impact on performance. Journal of marketing, 69(2), 24-41.

    Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of marketing, 54(2), 1-18.

    Kotler, P., & Keller, K. L. (2016). Marketing management (15th global ed.). England: Pearson.

    Macedo, I. M., & Pinho, J. C. (2006). The relationship between resource dependence and market orientation: The specific case of non?profit organisations. European Journal of Marketing.

    Min, S., Song, S., & Keebler, J. S. (2002). An Internet-mediated market orientation (IMO): Building a theory. Journal of Marketing Theory and Practice, 10(2), 1-11.

    Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of marketing, 54(4), 20-35.

    Nations, U. (2016). United Nations E-Government Survey 2016. Retrieved from https://publicadministration.un.org/egovkb/en-us/reports/un-e-government-survey-2016

    Newman, W. L. (2013). Metode Penelitian Sosial: Pendekatan Kualitatif dan Kuantitatif. PT. Indeks, 7.

    Nurrohmah, I., Dewi, M. A. A., & Sahadi, N. (2017). Measuring the e-Government Maturity in Indonesia using the Ranking of e-Government of Indonesia (PeGI). American Academic Scientific Research Journal for Engineering, Technology, and Sciences, 32(1), 49-63.

    Ogbonna, B. U., & Ogwo, O. E. (2013). Market orientation and corporate performance of insurance firms in Nigeria. international Journal of Marketing studies, 5(3), 104.

    Olavarrieta, S., & Friedmann, R. (2008). Market orientation, knowledge-related resources and firm performance. Journal of Business Research, 61(6), 623-630.

    Overby, E., Bharadwaj, A., & Sambamurthy, V. (2006). Enterprise agility and the enabling role of information technology. European Journal of Information Systems, 15(2), 120-131.

    Piercy, N. F., Harris, L. C., & Lane, N. (2002). Market orientation and retail operatives' expectations. Journal of Business Research, 55(4), 261-273.

    Pinho, J. C., Rodrigues, A. P., & Dibb, S. (2014). The role of corporate culture, market orientation and organisational commitment in organisational performance: the case of non-profit organisations. Journal of management development.

    Prasad, V. K., Ramamurthy, K., & Naidu, G. M. (2001). The influence of Internet–marketing integration on marketing competencies and export performance. Journal of international marketing, 9(4), 82-110.

    Rodrigues, A. P. (2010). Market orientation, job satisfaction, commitment and organisational performance: the specific case of local public sector. Transforming Government: People, Process and Policy.

    Sandvik, I. L., & Sandvik, K. (2003). The impact of market orientation on product innovativeness and business performance. International Journal of research in Marketing, 20(4), 355-376.

    Sargeant, A., & Mohamad, M. (1999). Business performance in the UK hotel sector-does it pay to be market oriented? Service Industries Journal, 19(3), 42-59.

    Shang, S., & Seddon, P. B. (2002). Assessing and managing the benefits of enterprise systems: the business manager's perspective. Information systems journal, 12(4), 271-299.

    Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. Journal of marketing, 59(3), 63-74.

    Vieira, V. A. (2010). Antecedents and consequences of market orientation: a Brazilian meta-analysis and an international mega-analysis. BAR-Brazilian Administration Review, 7, 40-58.

    Wahyuningdyah, R. Y., Dharmmesta, B. S., & Purwanto, B. (2017). Anteseden dan Konsekuensi Orientasi Pasar pada Instansi Pemerintah Kabupaten dan Kota.

    Walker, R. M., Brewer, G. A., Boyne, G. A., & Avellaneda, C. N. (2011). Market orientation and public service performance: new public management gone mad? Public Administration Review, 71(5), 707-717.

    Wang, Y., Chen, Y., Nevo, S., Jin, J., Tang, G., & Chow, W. (2013). IT capabilities and innovation performance: the mediating role of market orientation. Communications of the Association for Information systems, 33(1), 9.

    Wanna, J., O'Faircheallaigh, C., & Weller, P. M. (1992). Public sector management in Australia: Macmillan.

    Weill, P., Subramani, M., & Broadbent, M. (2002). IT infrastructure for strategic agility. Available at SSRN 317307.

    Wibisono, Y. (2003). Konvergensi di Indonesia, Beberapa Temuan Awal dan Implikasinya: University of Indonesia.

    Widiartanto, S. (2013). The effect of transformational leadership on market orientation, learning orientation, organization innovation and organization performance. IOSR J. Bus. Manag, 12, 8-18.

    Zebal, M. A., & Ali Quazi, A. (2011). Investigating the determinants and outcomes of market orientation: evidence from Bangladesh banks. International Journal of Management and Marketing Research, 4(2), 35-47.

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  3. Agarwal, S., Erramilli, M. K., & Dev, C. S. (2003). Market orientation and performance in service firms: role of innovation. Journal of Services Marketing.
  4. Au, A. K., & Tse, A. C. (1995). The effect of marketing orientation on company performance in the service sector: A comparitive study of the hotel industry in Hong Kong and New Zealand. Journal of International Consumer Marketing, 8(2), 77-87.
  5. Bharadwaj, A. S. (2000). A resource-based perspective on information technology capability and firm performance: an empirical investigation. MIS quarterly, 169-196.
  6. Bhatt, G., Emdad, A., Roberts, N., & Grover, V. (2010). Building and leveraging information in dynamic environments: The role of IT infrastructure flexibility as enabler of organizational responsiveness and competitive advantage. Information & Management, 47(7-8), 341-349.
  7. Bovaird, T. (1995). Urban Governance and Quality'of Life'Marketing in Strategies for Competition Between Sustainable Cities. Paper presented at the Regional Studies Association Conference, Gothenberg, Sweden.
  8. Byrd, T. A., & Turner, D. E. (2001). An exploratory examination of the relationship between flexible IT infrastructure and competitive advantage. Information & Management, 39(1), 41-52.
  9. Cano, C. R., Carrillat, F. A., & Jaramillo, F. (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.
  10. Caruana, A., Ramaseshan, B., & Ewing, M. T. (1999). Market orientation and performance in the public sector: The role of organizational commitment. Journal of Global Marketing, 12(3), 59-79.
  11. Cervera, A., Mollá, A., & Calder $ oAn, H. (2000). Market orientation: A framework for public institutions. Journal of Nonprofit & Public Sector Marketing, 7(1), 3-23.
  12. Cervera, A., Mollá, A., & Sanchez, M. (2001). Antecedents and consequences of market orientation in public organisations. European Journal of Marketing.
  13. Cowell, D. W. (1991). Mercadeo de servicios: un nuevo enfoque; del operativo al perceptivo.
  14. Creswell, J. W. (2014). Research design: qualitative, quantitative, and mixed methods approaches.
  15. Day, G. S. (1994). The capabilities of market-driven organizations. Journal of marketing, 58(4), 37-52.
  16. Denhardt, J. V., & Denhardt, R. B. (2015). The new public service revisited. Public Administration Review, 75(5), 664-672.
  17. Diamantopoulos, A., & Hart, S. (1993). Linking market orientation and company performance: preliminary evidence on Kohli and Jaworski's framework. Journal of Strategic Marketing, 1(2), 93-121.
  18. Duncan, N. B. (1995). Capturing flexibility of information technology infrastructure: A study of resource characteristics and their measure. Journal of management information systems, 12(2), 37-57.
  19. Ellis, P. D. (2006). Market orientation and performance: A meta?analysis and cross?national comparisons. Journal of Management studies, 43(5), 1089-1107.
  20. Fichman, R. G. (2004). Real options and IT platform adoption: Implications for theory and practice. Information systems research, 15(2), 132-154.
  21. Greenley, G. E. (1995). Market orientation and company performance: empirical evidence from UK companies. British journal of management, 6(1), 1-13.
  22. Hair, J. F. (2009). Multivariate data analysis.
  23. Han, J. K., Kim, N., & Srivastava, R. K. (1998). Market orientation and organizational performance: is innovation a missing link? Journal of marketing, 62(4), 30-45.
  24. Hayden, V. (1993). How to increase market orientation. Journal of Management in Medicine.
  25. Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing New challenges to international marketing: Emerald Group Publishing Limited.
  26. Indonesia, O. R. (2017). Laporan Hasil Inisiatif Ombudsman: Kepatuhan Penyelenggara terhadap Pemenuhan Komponen Standar Pelayanan sesuai Undang-Undang Nomor 25 Tahun 2009 tentang Pelayanan Publik
  27. Jas, P., & Skelcher, C. (2005). Performance decline and turnaround in public organizations: A theoretical and empirical analysis. British journal of management, 16(3), 195-210.
  28. Jaweng, R. E. (2011). Kritik Terhadap Desentralisasi Asimetris di Indonesia. Analisis CSIS, 160-176.
  29. Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: antecedents and consequences. Journal of marketing, 57(3), 53-70.
  30. Joseph, D., & Mehta, B. (2015). Market orientation and internal marketing. International Journal in Management & Social Science, 3(3), 76-84.
  31. Kara, A., Spillan, J. E., & DeShields Jr, O. W. (2004). An empirical investigation of the link between market orientation and business performance in nonprofit service providers. Journal of Marketing Theory and Practice, 12(2), 59-72.
  32. Kara, A., Spillan, J. E., & DeShields, O. W. (2005). The effect of a market orientation on business performance: a study of small?sized service retailers using MARKOR scale. Journal of small business management, 43(2), 105-118.
  33. Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market orientation: A meta-analytic review and assessment of its antecedents and impact on performance. Journal of marketing, 69(2), 24-41.
  34. Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of marketing, 54(2), 1-18.
  35. Kotler, P., & Keller, K. L. (2016). Marketing management (15th global ed.). England: Pearson.
  36. Macedo, I. M., & Pinho, J. C. (2006). The relationship between resource dependence and market orientation: The specific case of non?profit organisations. European Journal of Marketing.
  37. Min, S., Song, S., & Keebler, J. S. (2002). An Internet-mediated market orientation (IMO): Building a theory. Journal of Marketing Theory and Practice, 10(2), 1-11.
  38. Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of marketing, 54(4), 20-35.
  39. Nations, U. (2016). United Nations E-Government Survey 2016. Retrieved from https://publicadministration.un.org/egovkb/en-us/reports/un-e-government-survey-2016
  40. Newman, W. L. (2013). Metode Penelitian Sosial: Pendekatan Kualitatif dan Kuantitatif. PT. Indeks, 7.
  41. Nurrohmah, I., Dewi, M. A. A., & Sahadi, N. (2017). Measuring the e-Government Maturity in Indonesia using the Ranking of e-Government of Indonesia (PeGI). American Academic Scientific Research Journal for Engineering, Technology, and Sciences, 32(1), 49-63.
  42. Ogbonna, B. U., & Ogwo, O. E. (2013). Market orientation and corporate performance of insurance firms in Nigeria. international Journal of Marketing studies, 5(3), 104.
  43. Olavarrieta, S., & Friedmann, R. (2008). Market orientation, knowledge-related resources and firm performance. Journal of Business Research, 61(6), 623-630.
  44. Overby, E., Bharadwaj, A., & Sambamurthy, V. (2006). Enterprise agility and the enabling role of information technology. European Journal of Information Systems, 15(2), 120-131.
  45. Piercy, N. F., Harris, L. C., & Lane, N. (2002). Market orientation and retail operatives' expectations. Journal of Business Research, 55(4), 261-273.
  46. Pinho, J. C., Rodrigues, A. P., & Dibb, S. (2014). The role of corporate culture, market orientation and organisational commitment in organisational performance: the case of non-profit organisations. Journal of management development.
  47. Prasad, V. K., Ramamurthy, K., & Naidu, G. M. (2001). The influence of Internet–marketing integration on marketing competencies and export performance. Journal of international marketing, 9(4), 82-110.
  48. Rodrigues, A. P. (2010). Market orientation, job satisfaction, commitment and organisational performance: the specific case of local public sector. Transforming Government: People, Process and Policy.
  49. Sandvik, I. L., & Sandvik, K. (2003). The impact of market orientation on product innovativeness and business performance. International Journal of research in Marketing, 20(4), 355-376.
  50. Sargeant, A., & Mohamad, M. (1999). Business performance in the UK hotel sector-does it pay to be market oriented? Service Industries Journal, 19(3), 42-59.
  51. Shang, S., & Seddon, P. B. (2002). Assessing and managing the benefits of enterprise systems: the business manager's perspective. Information systems journal, 12(4), 271-299.
  52. Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. Journal of marketing, 59(3), 63-74.
  53. Vieira, V. A. (2010). Antecedents and consequences of market orientation: a Brazilian meta-analysis and an international mega-analysis. BAR-Brazilian Administration Review, 7, 40-58.
  54. Wahyuningdyah, R. Y., Dharmmesta, B. S., & Purwanto, B. (2017). Anteseden dan Konsekuensi Orientasi Pasar pada Instansi Pemerintah Kabupaten dan Kota.
  55. Walker, R. M., Brewer, G. A., Boyne, G. A., & Avellaneda, C. N. (2011). Market orientation and public service performance: new public management gone mad? Public Administration Review, 71(5), 707-717.
  56. Wang, Y., Chen, Y., Nevo, S., Jin, J., Tang, G., & Chow, W. (2013). IT capabilities and innovation performance: the mediating role of market orientation. Communications of the Association for Information systems, 33(1), 9.
  57. Wanna, J., O'Faircheallaigh, C., & Weller, P. M. (1992). Public sector management in Australia: Macmillan.
  58. Weill, P., Subramani, M., & Broadbent, M. (2002). IT infrastructure for strategic agility. Available at SSRN 317307.
  59. Wibisono, Y. (2003). Konvergensi di Indonesia, Beberapa Temuan Awal dan Implikasinya: University of Indonesia.
  60. Widiartanto, S. (2013). The effect of transformational leadership on market orientation, learning orientation, organization innovation and organization performance. IOSR J. Bus. Manag, 12, 8-18.
  61. Zebal, M. A., & Ali Quazi, A. (2011). Investigating the determinants and outcomes of market orientation: evidence from Bangladesh banks. International Journal of Management and Marketing Research, 4(2), 35-47.