Neil Morgan | Indiana University (original) (raw)

Papers by Neil Morgan

Research paper thumbnail of The Business Performance Outcomes of Market Orientation Culture and Behaviors

Review of Marketing Research, 2018

Abstract Purpose The marketing literature indicates that a firm’s organizational culture plays a ... more Abstract Purpose The marketing literature indicates that a firm’s organizational culture plays a critical role in determining its market orientation (MO) and thereby the firm’s ability to successfully adapt to its environment to achieve superior business performance. However, our understanding of the organizational culture of market-oriented firms and its relationship with business performance remains limited in a number of important ways. Drawing on the behavioral theory of the firm and the competing values theory perspective on organizational culture, our empirical study addresses important knowledge gaps concerning the relationship between firm MO culture, MO behaviors, innovation, customer satisfaction, and business performance. Methodology/approach We used a survey methodology with Clan Cultural Orientation, Adhocracy Cultural Orientation, Market Cultural Orientation, and Hierarchy Cultural Orientation Clan. Market Orientation Behaviors, Innovation, and Customer Satisfaction and CFROA t (Net Operating Income + Depreciation and Amortization – Disposal of Assets)/Total Assets. Findings The overall fit of the first Confirmatory Factor Analysis (CFA) containing the three MO behavior sub-scales, the four organizational culture scales, and the innovation and satisfaction performance measures was good with a χ 2 = 760.89, 524 df, p < 0.001; CFI = 0.916 and RMSEA = 0.055. The overall fit of the second CFA containing the business strategy, bureaucracy, and customer expectations control variables was also good with a χ 2 = 243.26, 156 df, p < 0.001; CFI = 0.937 and RMSEA = 0.061. We also subsequently ran a third CFA in which the MO behavior construct was modeled as a second-order factor comprising the three first-order sub-scales (generation of market intelligence, dissemination of market intelligence, and responsiveness to market intelligence) each of which in turn arose from the relevant survey indicants. This measurement model also fit well with the data with a χ 2 = 84.06, 63 df, p < 0.039; CFI = 0.955 and RMSEA = 0.047. Regressions using seemingly unrelated regressions (SUR) with control variables and with R 2 values ranging from 0.28 to 0.54. Practical implications MO culture has an important direct effect on firms’ financial performance as well as an indirect effect via MO behaviors and innovations. Importantly, our findings suggest that MO culture facilitates value-creating behaviors above and beyond those identified in the marketing literature as MO behaviors. In contrast to a series of studies by Deshpande and colleagues (1993, 1999, 2000, 2004), our empirical results suggest the value of the internally oriented Clan and to a lesser degree Hierarchy cultural orientations as well as the more externally oriented Adhocracy and Market cultural orientations. The benchmark ideal MO culture profile we identify is consistent with organization theory conceptualizations of strong balanced organizational cultures in which each of the four competing values orientations is simultaneously exhibited to a significant degree (e.g., Cameron & Freeman, 1991). Our findings indicate that the organizational culture domain of MO appears to be at least as important (if not more so) in explaining firm performance and suggest that researchers need to re-visit the conceptualization, and perhaps more importantly the operationalization, of MO as a central construct in strategic marketing thought. Originality/value In building an MO culture, an important first step is to assess the firm’s existing organizational culture profile (e.g., Goodman, Zammuto, & Gifford, 2001). Organization theory researchers have developed competing values theory-based organizational culture assessment tools that can provide managers with an easily accessible mechanism for accomplishing this (Cameron & Quinn, 1999). The profile of the firm’s existing culture and the profile of the ideal culture for MO from our study can then be plotted on a “spider’s web” graphical representation (e.g., Hooijberg & Petrock, 1993). This aids the comparison of the firm’s existing cultural profile with the ideal MO profile, enabling managers to easily diagnose the areas, direction, and magnitude MO culture profile “gaps” in their firm (Cameron, 1997). Specific gap-closing plans and tactics for gaps on each of the four cultural orientations can then be identified as part of the development of a change management program designed to create an MO culture profile (e.g., Chang & Wiebe, 1996). Cameron and Quinn’s (1999) workbook provides managers with an excellent operational resource for planning and undertaking such gap-closing organizational culture change initiatives.

Research paper thumbnail of Communications and the Reality of Marketing in Professional Service Firms

International Journal of Advertising, 1990

Research paper thumbnail of Behavioral Planning Problems in Explaining Market Planning Effectiveness

Journal of Business Research

Research paper thumbnail of Implementing Marketing

Journal of Professional Services Marketing, 1991

... The Product At the simplest level the 'product' is the marketing strategies and the... more ... The Product At the simplest level the 'product' is the marketing strategies and the marketing plan in which they are contained. ... This element of the internal marketing mix is concerned with what we are asking our internal customers to 'pay' when they buy into the marketing plan. ...

Research paper thumbnail of Managing Imitation Strategies: How Later Entrants Seize Market Share from Pioneers

Journal of Marketing, 1995

Research paper thumbnail of Upper echelons research in marketing

Journal of the Academy of Marketing Science, 2020

Research paper thumbnail of Marketing performance assessment and accountability: Process and outcomes

International Journal of Research in Marketing, 2021

Research paper thumbnail of Outside-in marketing: Renaissance and future

Industrial Marketing Management, 2020

Research paper thumbnail of Commentary on Shelby Hunt’s “The theoretical foundations of strategic marketing and marketing strategy: foundational premises, R-A theory, three fundamental strategies, and societal welfare”

AMS Review, 2015

Resource-Advantage theory has been an important addition to the marketing literature generally, a... more Resource-Advantage theory has been an important addition to the marketing literature generally, and the marketing strategy literature in particular. Twenty years after its introduction, this paper explores R-A theory in the context of marketing strategy research and considers three main issues. First, while R-A theory has clearly been impactful, why it has not been relatively more impactful. Second, it identifies and elaborates on some important marketing strategy phenomena and questions that have not been explicitly addressed by R-A theory. Third, it offers some suggestions for the further development of R-A theory.

Research paper thumbnail of Successful Growth by Acquisition

Journal of General Management, 1988

Growth, however one defines it, is a pervasive concept in the business world and particularly in ... more Growth, however one defines it, is a pervasive concept in the business world and particularly in the area of management. It is desired by managers who wish to be involved in growth companies for the personal stimulation and satisfaction they can provide and by the financial markets who identify 'growth stocks' and rate them highly, paying large premiums for equity in growth companies. Even economists arc generally in favour of growth with unusually wide agreement in the economic literature that there is a general relationship between growth and profitability [1]. In strategic terms growth can be accomplished in three main ways: internal development/organic growth which refers to expansion or diversification using internal corporate resources and can be achieved in an almost infinite number of ways from investment in marketing expenditure to increase market share to new product development programmes; jOint venture, which utilises a pool of inter-corporate resources to provide growth opportunities for the companies involved which each would find difficult, if not impossible, to pursue alone. This can take many forms including franchising, licensing and the appointment of agents. The third major option is acquisition whereby in order to grow one company simply buys another. In the academic literature the major debate on the methods of organisational growth has centred on the relative merits of organic growth and growth by acquisition. This area has received a great deal of attention in the past, usually coinciding with periods of unusually intense merger activity, or as they have become known, 'merger waves'. At the present time the public profile of growth by acquisition has reached possibly its highest ever level as Britain and America arc experiencing a very large 'merger wave'. The academic debate is in the process of being brought up-to-date in this present merger climate but little new work has yet filtered through. As a

Research paper thumbnail of The criticality of CMO-CIO alignment

Business Horizons, 2017

This year, chief marketing officers (CMOs) will spend more money on IT than chief information off... more This year, chief marketing officers (CMOs) will spend more money on IT than chief information officers (CIOs). This rapid shift in responsibility is creating a growing divide between CIOs and CMOs over firms’ IT investment decisions and actions, which is of increasing significance to firm performance. Understanding and managing this CIO-CMO divide is important in light of the magnitude of investment involved—global IT spending is estimated to exceed $4.1 trillion by 2018—and CEOs’ belief that technology is a critical success factor for future firm performance. Heretofore, there has been little investigation regarding the unique relationship between the CMO and CIO. The research reported herein addresses this shortcoming by revealing the results of in-depth interviews with CMOs and CIOs across multiple industries. The results identify the nature and sources of conflict between the two roles as well as the management-related mechanisms to overcome them, revealing the need for CEOs to focus on managing four specific sources of CMO-CIO conflict: perspective, goals, accountability, and structural conflict. While the CEO has the power to create the management-related mechanisms that promote greater CMO-CIO alignment, we also detail steps that the functional leaders can take to put the mechanisms in place should the CEO fail to do so.

Research paper thumbnail of Marketing Capabilities Scale

Research paper thumbnail of Marketing Capabilities for B2B Firms

Handbook of Business-to-Business Marketing

Research paper thumbnail of Defining Quality: A Contingency Perspective

Developments in Marketing Science: Proceedings of the Academy of Marketing Science, 2014

Whilst quality is an issue that has become dominant in the strategies and operation of many organ... more Whilst quality is an issue that has become dominant in the strategies and operation of many organizations, the response of marketing academics has been relatively muted. It is possible to view the definitional problems and issues surrounding the concept of quality as a significant barrier to further conceptualization and empirical study. In the organizational context this may be one cause of the inter-functional co-ordination problems and conflict that are often associated with the operation of quality management. In an attempt to address these issues a basic contingency model is presented and the implications for the role of marketing in the management of quality discussed.

Research paper thumbnail of Process Issues in Customer Satisfaction Measurement and Management

Developments in Marketing Science: Proceedings of the Academy of Marketing Science, 2014

In the conventional literature of marketing the measurement of customer satisfaction, and the app... more In the conventional literature of marketing the measurement of customer satisfaction, and the appropriate reaction to these measurements by management, is central to the implementation of the marketing concept and implicit in recent conceptualizations of market orientation. This centrality is reflected in the widespread advocacy of customer satisfaction measurement in the prescriptive practitioner literature, and the adoption of customer satisfaction management approaches.

Research paper thumbnail of Examining Why and When Market Share Drives Firm Profit

Journal of Marketing, 2021

Many firms use market share to set marketing goals and monitor performance. Recent meta-analytic ... more Many firms use market share to set marketing goals and monitor performance. Recent meta-analytic research reveals the average economic impact of market share performance and identifies some factors affecting its value. However, empirical understanding of why any market share–profit relationship exists and varies is limited. The authors simultaneously examine the three primary theoretical mechanisms linking firm market share with profit. On average, they find that most of the variance in market share’s positive effect on firm profit is explained by market power and quality signaling, with little support for operating efficiency as a mechanism. They find a similar explanatory role of the three mechanisms in conditions where market share negatively predicts profit (for niche firms and those “buying” market share). Using these mechanism insights, the authors show that the value of market share differs in predictable ways between firms and across industries, providing new understanding o...

Research paper thumbnail of Firm Capabilities and Growth: The Moderating Effect of Market Conditions

Developments in Marketing Science: Proceedings of the Academy of Marketing Science, 2016

Research paper thumbnail of Which Competitive Advantage(s)? Competitive Advantage–Market Performance Relationships in International Markets

Journal of International Marketing, 2017

Business scholars and managers stress the importance of achieving and sustaining competitive adva... more Business scholars and managers stress the importance of achieving and sustaining competitive advantage as a critical strategic step in enabling superior firm performance. Yet which types of competitive advantage may yield the best performance outcomes—and what contingency factors may affect this—remains largely unexplored. This article examines the contribution of price, product, and service advantages to market performance in international ventures. Applying customer value logic to the literature on value creation and value capture, the authors posit that the symmetric achievement of all pairs of advantages leads to increased market performance. The findings confirm this conjecture, while for the product–service advantage pairing, even asymmetry in achievement has a positive market performance effect when the asymmetry is toward service. Using primary data from a sample of U.K. manufacturing exporters, the authors find that price advantage has a direct positive effect on market per...

Research paper thumbnail of Professional Services Marketing

Part Marketing and the professions: introduction to marketing marketing in professional service f... more Part Marketing and the professions: introduction to marketing marketing in professional service firms. Part 2 Market analysis and information: market analysis marketing information and research. Part 3 Strategic market planning: strategic marketing of professional services developing a strategic marketing plan environmental analysis strategy alternatives. Part 4 Marketing communications and advertising marketing communications personal selling and firm image. Part 5 Making marketing happen: developing a market orientation marketing and quality.

Research paper thumbnail of Linking marketing capabilities with profit growth

International Journal of Research in Marketing, 2009

Research paper thumbnail of The Business Performance Outcomes of Market Orientation Culture and Behaviors

Review of Marketing Research, 2018

Abstract Purpose The marketing literature indicates that a firm’s organizational culture plays a ... more Abstract Purpose The marketing literature indicates that a firm’s organizational culture plays a critical role in determining its market orientation (MO) and thereby the firm’s ability to successfully adapt to its environment to achieve superior business performance. However, our understanding of the organizational culture of market-oriented firms and its relationship with business performance remains limited in a number of important ways. Drawing on the behavioral theory of the firm and the competing values theory perspective on organizational culture, our empirical study addresses important knowledge gaps concerning the relationship between firm MO culture, MO behaviors, innovation, customer satisfaction, and business performance. Methodology/approach We used a survey methodology with Clan Cultural Orientation, Adhocracy Cultural Orientation, Market Cultural Orientation, and Hierarchy Cultural Orientation Clan. Market Orientation Behaviors, Innovation, and Customer Satisfaction and CFROA t (Net Operating Income + Depreciation and Amortization – Disposal of Assets)/Total Assets. Findings The overall fit of the first Confirmatory Factor Analysis (CFA) containing the three MO behavior sub-scales, the four organizational culture scales, and the innovation and satisfaction performance measures was good with a χ 2 = 760.89, 524 df, p < 0.001; CFI = 0.916 and RMSEA = 0.055. The overall fit of the second CFA containing the business strategy, bureaucracy, and customer expectations control variables was also good with a χ 2 = 243.26, 156 df, p < 0.001; CFI = 0.937 and RMSEA = 0.061. We also subsequently ran a third CFA in which the MO behavior construct was modeled as a second-order factor comprising the three first-order sub-scales (generation of market intelligence, dissemination of market intelligence, and responsiveness to market intelligence) each of which in turn arose from the relevant survey indicants. This measurement model also fit well with the data with a χ 2 = 84.06, 63 df, p < 0.039; CFI = 0.955 and RMSEA = 0.047. Regressions using seemingly unrelated regressions (SUR) with control variables and with R 2 values ranging from 0.28 to 0.54. Practical implications MO culture has an important direct effect on firms’ financial performance as well as an indirect effect via MO behaviors and innovations. Importantly, our findings suggest that MO culture facilitates value-creating behaviors above and beyond those identified in the marketing literature as MO behaviors. In contrast to a series of studies by Deshpande and colleagues (1993, 1999, 2000, 2004), our empirical results suggest the value of the internally oriented Clan and to a lesser degree Hierarchy cultural orientations as well as the more externally oriented Adhocracy and Market cultural orientations. The benchmark ideal MO culture profile we identify is consistent with organization theory conceptualizations of strong balanced organizational cultures in which each of the four competing values orientations is simultaneously exhibited to a significant degree (e.g., Cameron & Freeman, 1991). Our findings indicate that the organizational culture domain of MO appears to be at least as important (if not more so) in explaining firm performance and suggest that researchers need to re-visit the conceptualization, and perhaps more importantly the operationalization, of MO as a central construct in strategic marketing thought. Originality/value In building an MO culture, an important first step is to assess the firm’s existing organizational culture profile (e.g., Goodman, Zammuto, & Gifford, 2001). Organization theory researchers have developed competing values theory-based organizational culture assessment tools that can provide managers with an easily accessible mechanism for accomplishing this (Cameron & Quinn, 1999). The profile of the firm’s existing culture and the profile of the ideal culture for MO from our study can then be plotted on a “spider’s web” graphical representation (e.g., Hooijberg & Petrock, 1993). This aids the comparison of the firm’s existing cultural profile with the ideal MO profile, enabling managers to easily diagnose the areas, direction, and magnitude MO culture profile “gaps” in their firm (Cameron, 1997). Specific gap-closing plans and tactics for gaps on each of the four cultural orientations can then be identified as part of the development of a change management program designed to create an MO culture profile (e.g., Chang & Wiebe, 1996). Cameron and Quinn’s (1999) workbook provides managers with an excellent operational resource for planning and undertaking such gap-closing organizational culture change initiatives.

Research paper thumbnail of Communications and the Reality of Marketing in Professional Service Firms

International Journal of Advertising, 1990

Research paper thumbnail of Behavioral Planning Problems in Explaining Market Planning Effectiveness

Journal of Business Research

Research paper thumbnail of Implementing Marketing

Journal of Professional Services Marketing, 1991

... The Product At the simplest level the 'product' is the marketing strategies and the... more ... The Product At the simplest level the 'product' is the marketing strategies and the marketing plan in which they are contained. ... This element of the internal marketing mix is concerned with what we are asking our internal customers to 'pay' when they buy into the marketing plan. ...

Research paper thumbnail of Managing Imitation Strategies: How Later Entrants Seize Market Share from Pioneers

Journal of Marketing, 1995

Research paper thumbnail of Upper echelons research in marketing

Journal of the Academy of Marketing Science, 2020

Research paper thumbnail of Marketing performance assessment and accountability: Process and outcomes

International Journal of Research in Marketing, 2021

Research paper thumbnail of Outside-in marketing: Renaissance and future

Industrial Marketing Management, 2020

Research paper thumbnail of Commentary on Shelby Hunt’s “The theoretical foundations of strategic marketing and marketing strategy: foundational premises, R-A theory, three fundamental strategies, and societal welfare”

AMS Review, 2015

Resource-Advantage theory has been an important addition to the marketing literature generally, a... more Resource-Advantage theory has been an important addition to the marketing literature generally, and the marketing strategy literature in particular. Twenty years after its introduction, this paper explores R-A theory in the context of marketing strategy research and considers three main issues. First, while R-A theory has clearly been impactful, why it has not been relatively more impactful. Second, it identifies and elaborates on some important marketing strategy phenomena and questions that have not been explicitly addressed by R-A theory. Third, it offers some suggestions for the further development of R-A theory.

Research paper thumbnail of Successful Growth by Acquisition

Journal of General Management, 1988

Growth, however one defines it, is a pervasive concept in the business world and particularly in ... more Growth, however one defines it, is a pervasive concept in the business world and particularly in the area of management. It is desired by managers who wish to be involved in growth companies for the personal stimulation and satisfaction they can provide and by the financial markets who identify 'growth stocks' and rate them highly, paying large premiums for equity in growth companies. Even economists arc generally in favour of growth with unusually wide agreement in the economic literature that there is a general relationship between growth and profitability [1]. In strategic terms growth can be accomplished in three main ways: internal development/organic growth which refers to expansion or diversification using internal corporate resources and can be achieved in an almost infinite number of ways from investment in marketing expenditure to increase market share to new product development programmes; jOint venture, which utilises a pool of inter-corporate resources to provide growth opportunities for the companies involved which each would find difficult, if not impossible, to pursue alone. This can take many forms including franchising, licensing and the appointment of agents. The third major option is acquisition whereby in order to grow one company simply buys another. In the academic literature the major debate on the methods of organisational growth has centred on the relative merits of organic growth and growth by acquisition. This area has received a great deal of attention in the past, usually coinciding with periods of unusually intense merger activity, or as they have become known, 'merger waves'. At the present time the public profile of growth by acquisition has reached possibly its highest ever level as Britain and America arc experiencing a very large 'merger wave'. The academic debate is in the process of being brought up-to-date in this present merger climate but little new work has yet filtered through. As a

Research paper thumbnail of The criticality of CMO-CIO alignment

Business Horizons, 2017

This year, chief marketing officers (CMOs) will spend more money on IT than chief information off... more This year, chief marketing officers (CMOs) will spend more money on IT than chief information officers (CIOs). This rapid shift in responsibility is creating a growing divide between CIOs and CMOs over firms’ IT investment decisions and actions, which is of increasing significance to firm performance. Understanding and managing this CIO-CMO divide is important in light of the magnitude of investment involved—global IT spending is estimated to exceed $4.1 trillion by 2018—and CEOs’ belief that technology is a critical success factor for future firm performance. Heretofore, there has been little investigation regarding the unique relationship between the CMO and CIO. The research reported herein addresses this shortcoming by revealing the results of in-depth interviews with CMOs and CIOs across multiple industries. The results identify the nature and sources of conflict between the two roles as well as the management-related mechanisms to overcome them, revealing the need for CEOs to focus on managing four specific sources of CMO-CIO conflict: perspective, goals, accountability, and structural conflict. While the CEO has the power to create the management-related mechanisms that promote greater CMO-CIO alignment, we also detail steps that the functional leaders can take to put the mechanisms in place should the CEO fail to do so.

Research paper thumbnail of Marketing Capabilities Scale

Research paper thumbnail of Marketing Capabilities for B2B Firms

Handbook of Business-to-Business Marketing

Research paper thumbnail of Defining Quality: A Contingency Perspective

Developments in Marketing Science: Proceedings of the Academy of Marketing Science, 2014

Whilst quality is an issue that has become dominant in the strategies and operation of many organ... more Whilst quality is an issue that has become dominant in the strategies and operation of many organizations, the response of marketing academics has been relatively muted. It is possible to view the definitional problems and issues surrounding the concept of quality as a significant barrier to further conceptualization and empirical study. In the organizational context this may be one cause of the inter-functional co-ordination problems and conflict that are often associated with the operation of quality management. In an attempt to address these issues a basic contingency model is presented and the implications for the role of marketing in the management of quality discussed.

Research paper thumbnail of Process Issues in Customer Satisfaction Measurement and Management

Developments in Marketing Science: Proceedings of the Academy of Marketing Science, 2014

In the conventional literature of marketing the measurement of customer satisfaction, and the app... more In the conventional literature of marketing the measurement of customer satisfaction, and the appropriate reaction to these measurements by management, is central to the implementation of the marketing concept and implicit in recent conceptualizations of market orientation. This centrality is reflected in the widespread advocacy of customer satisfaction measurement in the prescriptive practitioner literature, and the adoption of customer satisfaction management approaches.

Research paper thumbnail of Examining Why and When Market Share Drives Firm Profit

Journal of Marketing, 2021

Many firms use market share to set marketing goals and monitor performance. Recent meta-analytic ... more Many firms use market share to set marketing goals and monitor performance. Recent meta-analytic research reveals the average economic impact of market share performance and identifies some factors affecting its value. However, empirical understanding of why any market share–profit relationship exists and varies is limited. The authors simultaneously examine the three primary theoretical mechanisms linking firm market share with profit. On average, they find that most of the variance in market share’s positive effect on firm profit is explained by market power and quality signaling, with little support for operating efficiency as a mechanism. They find a similar explanatory role of the three mechanisms in conditions where market share negatively predicts profit (for niche firms and those “buying” market share). Using these mechanism insights, the authors show that the value of market share differs in predictable ways between firms and across industries, providing new understanding o...

Research paper thumbnail of Firm Capabilities and Growth: The Moderating Effect of Market Conditions

Developments in Marketing Science: Proceedings of the Academy of Marketing Science, 2016

Research paper thumbnail of Which Competitive Advantage(s)? Competitive Advantage–Market Performance Relationships in International Markets

Journal of International Marketing, 2017

Business scholars and managers stress the importance of achieving and sustaining competitive adva... more Business scholars and managers stress the importance of achieving and sustaining competitive advantage as a critical strategic step in enabling superior firm performance. Yet which types of competitive advantage may yield the best performance outcomes—and what contingency factors may affect this—remains largely unexplored. This article examines the contribution of price, product, and service advantages to market performance in international ventures. Applying customer value logic to the literature on value creation and value capture, the authors posit that the symmetric achievement of all pairs of advantages leads to increased market performance. The findings confirm this conjecture, while for the product–service advantage pairing, even asymmetry in achievement has a positive market performance effect when the asymmetry is toward service. Using primary data from a sample of U.K. manufacturing exporters, the authors find that price advantage has a direct positive effect on market per...

Research paper thumbnail of Professional Services Marketing

Part Marketing and the professions: introduction to marketing marketing in professional service f... more Part Marketing and the professions: introduction to marketing marketing in professional service firms. Part 2 Market analysis and information: market analysis marketing information and research. Part 3 Strategic market planning: strategic marketing of professional services developing a strategic marketing plan environmental analysis strategy alternatives. Part 4 Marketing communications and advertising marketing communications personal selling and firm image. Part 5 Making marketing happen: developing a market orientation marketing and quality.

Research paper thumbnail of Linking marketing capabilities with profit growth

International Journal of Research in Marketing, 2009