Innovation and Communication as Dimensions of the Marketing Culture: Their Influence on Financial Performance in Slovenia’s Insurance and Construction Industries

Only available on StudyMode
  • Download(s) : 133
  • Published : April 1, 2012
Open Document
Text Preview
Innovation and Communication as Dimensions of the Marketing Culture: Their Influence on Financial Performance in Slovenia’s Insurance and Construction Industries

Natalija Postružnik, M.Sc. Trčova 211, 2229 Malečnik, Slovenia, natalija.postruznik@amis.net

Melita Moretti, M.Sc. Trebinjska ulica 2, 1000 Ljubljana, Slovenia, melita.moretti@amis.net

(JEL): M30

1

Innovation and Communication as Dimensions of the Marketing Culture: Their Influence on Financial Performance in Slovenia’s Insurance and Construction Industries

Natalija Postružnik, M.Sc., and Melita Moretti, M.Sc.

Izvleček V pričujočem prispevku sta opredeljena pomen in vloga marketinške kulture organizacije ter njenih kategorij inovativnost in interno komuniciranje, ki pomembno vplivata na finančno uspešnost poslovanja organizacij. Na podlagi teoretičnih spoznanj je izvedena kvalitativna raziskava v gospodarskih panogah zavarovalništvo in gradbeništvo v R Sloveniji. Na osnovi ugotovitev raziskave so podana priporočila za prakso in nadaljnje raziskovanje. Ključne besede: marketinška kultura, finančna uspešnost, inovativnost, interno komuniciranje, zavarovalništvo, gradbeništvo.

2

Article Natalija Postružnik, M.Sc., and Melita Moretti, M.Sc. Abstract This study explores the meaning and role of the marketing culture within organizations, specifically innovativeness and internal communications, both of which have a significant impact on an organization’s financial performance. A qualitative study in the insurance and construction industries in Slovenia was conducted based on theoretical insight, in which 11 semi-structured interviews were conducted with top and middle managers of medium-sized and large organizations. Recommendations to be applied in practice and for further research are given based on the findings. Keywords: Marketing culture, Financial performance, Innovation, Internal communications, Insurance industry, Construction industry

3

1

Introduction

Macroeconomic indicators (gross domestic product, inflation, gross capital expenditure, registered unemployment, and real value of performed work) affect the efficiency and effectiveness of individual industries. Within these industries, the efficiency and effectiveness of individual organizations need to be examined in light of the 2008 economic crisis, recession and economic stagnation. Garelli (2010: 5) called this period a “tragedy in three acts”; that is, the convergence of a financial crisis, an economic crisis, and a social crisis. In such circumstances, companies must adapt and learn constantly to understand and develop their competitive edge, shifting their focus from emphasizing long-term relationships (social processes) between the organization and stakeholders linking all the factors of mutual relationships to increasingly take into account the partner’s needs, desires, and expectations (Moretti 2011, Barney 1991, Fahy 2000). The assets of such features, which are important for creating competitive advantage, include the organization’s marketing culture (Kasper 2002:1049, Ross-Wooldridge and Minsky 2002:30). Competitive edge leads the organization to above-average market performance and consequently improved financial performance (Day, Wensley 1981:14). Indeed, the presence or absence of a marketing culture (comprising six dimensions: service quality, interpersonal relationships, sales tasks, organization, internal communications, and innovativeness) plays an important role in financial performance (Webster 1995:7). Despite the strong influence of a marketing culture on organizational performance, only two studies on the topic of have been conducted in the context of Slovenia: one in the education sector and another in the food processing industry. Studies that have examined the dimensions of marketing culture show that the category of innovation is the most important for the organization’s competitiveness (Simon 2010), with radical innovation1 being crucial to...
tracking img