Market-oriented Decision Factors, Output Factors And Covariates: The Evidence Of The Chinese Market

According to literature review and the result of the author's research, the study of market-orientation theory is yet to be developed and perfected. In China particularly, research on the market orientation has just made its move and is unsophisticated theoretically and practically. At present China is in a critical moment for economical transformation and marketization. The capability of fitting into marketization, gaining competitiveness and development in line with the requirement of market orientation is a key issue concerned by Chinese local enterprises as well as joint ventures and foreign enterprises.Therefore the purposes of the paper are as following:1 Perfecting the system of market orientation (covering six aspects) : 1) Study the theoretical basis of and framework of market orientation, analyze two perspectives concerning market orientation; 2) Compare and summarize the theoretical study and empirical analysis of market orientation accomplished nationally and internationally to set theoretical and practical ground for research conducted in the paper; 3) Study and design the mode and the framework of market orientation; 4) Analyze and compare the classification and assessment of market orientation activities; 5) Make analysis on determinants of market orientation, design the index and carry out empirical study; 6) Based on the core relationship of market orientation - business performance, study and analyze the outcomes of market orientation, make design for the index and carry out empirical study.2 Explore the study methods of market orientation (Covering seven aspects): 1) Try the empirical study on moderator of market orientation and make theoretical differentiation for moderator in terms of feature and nature; 2) Study and demonstrate the degree of influence upon various types of market orientation structures by different moderator; 3) Set strict data testing methods, including credibility test, validity test and factor analysis; 4) Study the principles of SEM (structural equation modeling, SEM) and techniques of enhancing goodness fit index based on LISREL software; 5) Design multi-phase study of(confirmatory factor analysis, CFA), including data, index, sample and model; 6) Design and develop feasible factors and indexes, conduct EFA(exploratory factor analysis)study; 7) Set up rational and comprehensive criteria for business performance assessment and future activities assessment.3 Study the actual conditions of Chinese enterprises and provide proper suggestions (Covering six aspects): 1) Collect data and information about Chinese market enterprises based on structured and controlled samples; 2) Design and develop rational determinants and outcomes of market orientation, including indexes, to enable enterprises to recognize the features of Chinese market and to ensure that data provided reflects true situation of Chinese market; 3) Analyze the level, restraining factors and outcome factors under Chinese cultural, economic and political background; 4) Study the correlation between the level of Chinese enterprise market orientation and business performance and future activities; 5) Analyze the restraining factors of Chinese enterprises; 6) Study the stabilityof market orientation - business performance correlation and market orientation - future activities and its change under different circumstances.The significance of the paper lies in: 1) It is a summarization and comparison to the study of market orientation; 2) It is a step to develop and perfect market orientation. This paper will propose the framework and model for the study of market orientation; 3) It brings advancement and breakthrough for the significance of market orientation; 4) It is a complete empirical study for market orientation, including the process of providing strict data testing, multi-phase and multi-sample testing; 5) It is a move to approach to the real market on the ground of moderator study; 6) It furnishes a series of new evidences and experience to the study of market orientation for enterprises in China; 7) It provides a new angle into market orientation study from the perspectives of government, policies and politics.The paper starts from general overview of the theory and comparison, specifying the current situation, problems, core content, major methods and conclusion of market orientation study in and out of China. Based on the research goal, the paper makes proper design for methodology, investigation procedures, data collection process, data process techniques and modeling, conducting further analysis on the results of statistics and measurement. The study frame of the paper is to divide the market orientation system into three layers in the analyzing process, namely, the determinants, the components and the outcomes of market orientation. Various determinants and outcomes are designed based on literature review and needs of the paper. Three different market orientation models are constructed by the combination of different determinants:â–¡ COPA stands for correlations among Capabilities-Market Orienation-Performances&Future Activities;â–¡ EOPA stands for correlations amongBusiness Environment-Market Orienation-Performances&Future Activities; andâ–¡ SOPA stands for correlations amongCorperate Strategy-Market Orienation-Performances&Future Activities. Major content of this research: Chapter one first analyzes the research background of this paper and brings out the questions of market orientation in theory and in practice. Then it presents the purpose and significance of this paper in research. Later, it gives the topic, major assumption and the frame of this paper, stating the methods being used, samples and data. At the end of chapter one it gives a general description on the research content and the expected conclusion. Chapter two makes an overview, summarization and comparison on the research experience and conclusion for domestic and foreign market orientation. Firstly it presents the theoretical background and basis that brings out market orientation, and makes a brief introduction to the evolvement of market orientation. Secondly, it carries out a detailed comparison to the research and opinions of Narver, Slater and Kohli, Jaworski, and based on their research, it summarizes achievements of other researchers in terms of school, method and conclusion. Thirdly, it conducts detailed analysis on the theoretical frame of market orientation, including the determinants of market orientation, the measuring of market orientation, the outcome of market orientation, the differentiated conclusion for different areas and industries, and the influence of moderator. Chapter three follows the ideas of chapter two and develops them. It combinesthe research goal and the methods of this paper with reference to various theories and opinions. It brings out assumptions according to the relation between particular models, structures and factors of different modes based on the three samples in two phases. It gives sub-assumptions according to the index of each factor and construct different model. In chapter four it mainly introduces and studies the data, methods used in this paper, including research design, questionnaire design, scale development, sample control, sample fundamental features statistics, reliability & validity testing methods and SEM principles in the two phases. Chapter five adopts the order of the two phases and three samples, and conducts basic statistics analysis, reliability testing, validity testing and factor analysis on the factors in different structures, obtaining the fundamental data and proving some of the assumptions. Chapter six is mainly about SEM analysis. Based on specific assumptions and sub-assumption of different models in different modes, it will use LISREL to analyze and justify the assumptions and sub-assumptions. It also contains the demonstration of different moderator. Chapter six is the core of this paper and it will answer to the assumptions proposed in chapter three through strict verifying process. Chapter seven is the summary to chapter six and chapter five. It further compares the contents and results in different phases, modes and models. Chapter seven also states the limitation and fields of future research.Empirical research is adopted in this paper based on Chinese enterprise data. It is divided into two phases and three samples. The second phase is the complement and reconfirmation to the first phase. This two-phase study greatly helps the development of market orientation and overcomes the defects of traditional single phase study. As to research frame, this paper proposes methods of mode-based and model-based research. As to data collecting, this paper firstly designs structured indexes and questionnaires, collecting data by means of market survey. Furthermore, this research of this paper sets strict control on sample structure, and the qualification of responders. As to data analysis, this paper adopts SEM method to analyze each model and its assumptions based on strict testing of credibility and validity. In the end, it summarizes and brings out conclusions.The conclusion of the paper falls on three aspects: theory, methodology and empirical research. As to the theoretical aspect, firstly, the paper maintains that the theoretical foundation of market orientation is the enterprise philosophy and culture view, but the content of market orientation and its measuring should be of behavior system and the market orientation should be done from a practical angle. Secondly, market orientation has a multi-layer and multi-factor structure. The paper starts from the triple layer of determinants, components and outcomes, and carries out analysis on different models for each layer with different factors. There are three major modes concluded in the paper: CORA, EOPA and SORA. Various models are brought out based on combination of different factors. Thirdly, market orientation is closely linked to corporate strategy, enterprise organizational behavior, capability theory and business environment.As to the methodology aspect, firstly the SEM analysis is reliable because of the good credibility and validity of enterprise data. Secondly, the influence of moderator can be studied by splitting samples. Thirdly, the analysis of different modes and models ensure the goodness-fit index and a deeper analysis on different structure of market orientation.