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Journal of Management Research ISSN 1941-899X 2012, Vol. 4, No. 1: E6

An Analysis of Antecedents and Consequences of Market Orientation for Iran’s Insurance Industry Bahram Ranjbarian Management Department, University of Isfahan, Iran E-mail: bahram1r@yahoo.com

Majid Rashid Kaboli Management Department, University of Isfahan, Iran E-mail:majidkaboli@yahoo.com

Morteza Rojuee (corresponding author) Business Administration, University of Isfahan, Iran E-mail: mortezarojui@gmail.com

Received: April 30, 2011 doi:10.5296/jmr.v4i1.642

Accepted: August 18, 2011

Published: January 1, 2012

URL: http://dx.doi.org/10.5296/jmr.v4i1.642

Abstract Purpose- Present empirical study intends to address antecedents and consequences of market orientation in Iranian insurance industry Design/methodology/approach – Multiple regression models are employed to analyze the data in order to verify the hypotheses corresponding to the causal relationships proposed research model. Findings – The findings supported the hypotheses of the study and confirmed applicability of the proposed market orientation framework. The findings indicate that the extent of market orientation in Iranian insurance corporations is determined by top management emphasis, risk taking of top management, centralization, political behavior, market based reward system, and interdepartmental conflict as internal factors and management perception of environmental changes as external factor. The study also identified significant effect of market orientation on both the economic and noneconomic business performance.

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Journal of Management Research ISSN 1941-899X 2012, Vol. 4, No. 1: E6

Research limitations/implications – Since the study focused only on insurance corporations and the measurement scale was adapted accordingly, valid conclusions can be drawn for that particular service sector, and with due caution for service providers in general. The Iranian setting limits international applicability of the results, but contains potentially transferable insights. Originality/value – The study reported here applies the market orientation concept in a practitioner context which so far has been ignored by researchers, in a developing country. Keywords: Market orientation, Insurance industry, Business performance, Iran

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Journal of Management Research ISSN 1941-899X 2012, Vol. 4, No. 1: E6

1. Introduction Marketing concept can be defined as a consumer orientation represented by the ability to recognize targeted customers’ generic wants, needs, and preferences and satisfy them by continuously creating and delivering superior value backed by an organization-wide integrated effort of all functional areas within the organization in order to achieve long-term corporate goals and objectives (zebal, 2003). Despite the importance of this concept, it was not until the 1970s and 1980s that attempts were made to clarify implementation issues (Kotler, 1977; Shapiro, 1988). Since then, a new perspective for viewing marketing concept as implementation has emerged within the marketing literature that is called market orientation. In the recent years, market orientation has been considered to be a critical issue for business success (Narver & Slater, 1990; Jaworski & Kohli, 1993; Matsuno et al., 2005; Morris et al., 2007). In this connection, Narver and Slater’s (1990) study was the first to identify market orientation as the determinant of a company’s profitability and later (Slater and Narver, 1994) even identified a stronger relationship between the market orientation and business performance (profitability, customer retention, sales growth, and new product success). Jaworski and Kohli (1993) also found market orientation to be an important determinant of business success and declared it to be the key to business success. Webster (1994) proposed market orientation as the survival element of the competitive...
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