The Development of Market Orientation Based on Organizational Perspective for Creating Business Performance of Banking Industries in Indonesia

Transcription

1 Vol. 2 January 2012 International Peer Reviewed Journal Print ISSN Electronic ISSN doi: Asian Journal of Business and Governance Business Administration Section The Development of Market Orientation Based on Organizational Perspective for Creating Business Performance of Banking Industries in Indonesia TATIK SURYANI tatik@perbanas.ac.id President of STIE Perbanas Surabaya (College of Business and Banking) Indonesia Abstract - Less research in banking industries has focused on developing conceptual frame work of market orientation based on organizational perspective. Previous studies on market orientation that were conducted partially in manufacturing industries found that some of variables of organizational system have effect on market orientation and business performance. This research develops a conceptual framework for developing market orientation and its effect toward business performance in banking industries. It involve 128 branches of banks as the sample. All instruments used in the research had been tested for their validity and reliability. By using Structural Equation Modeling, it was found as follows: 1) Leadership style, specifically transformational leadership, formalization, and learning orientation have positive effect on market orientation, 2) learning orientation, rewards system (market-based), and centralization influence directly the business performance in banking industries, 3) market orientation has positive effect on business performance. It implies that it is very important for banking managers to develop market orientation by establishing organizational systems such as transformational leadership, formalization, and learning orientation. This paper passed the plagiarism detector, spelling and grammar checker, Gunning Fog Index, Flesch Reading Ease, reference checker, and formula checker. 1

2 Asian Journal of Business and Governance Besides that, market-based reward system and decision making style of management should be considered for facilitating their business performance. Keywords - transformational leadership, learning orientation, market orientation, business performance. 2 INTRODUCTION In line with banking policy of Indonesia in the Indonesian Banking Architecture, the degree of competition among banks in Indonesia has been sharply increasing. For example, during five years, the number of commercial banks in 2005 was 131 with 8236 branch offices, increasing by 13,633 with 8236 branch offices in 2010 (Indonesian Banking Statistics, 2010: 2). The competition, even, has been higher since the number of lending bank offices also increased from 1706 in 2005, into Another condition is the growth of other financial institutions which provide similar products and services as those offered by the banks. The competitive condition described above requires that the banks be more customer-oriented. So far, the programs have been oriented to customers, for example backlog, however, some aspects of services have not been fully well-performed. Not all of the branches of the banks provide quality services to satisfy consumers. Complaints about low quality of services are often broadcasted to the public through the media, like newspapers and radio (Suryani, 2008). This indicates that the bank services have not been significantly expected by the consumers recently. Such types of services cannot be separated from the fact that market orientation is not yet becoming an organizational culture. There are still relatively few banks that put customers, competitors, and environmental changes as the main foci of management activities. In fact, it is very important to maintain market orientation as part of organizational system and culture. Many previous studies found that market orientation as the organizational system and culture is still considered most effective and efficient in shaping behaviors to create superior value for customers and continuous superior business

3 The Development of Market Orientation Based on Organizational Perspective... Suryani performance (Jaworski and Kohli, 1996; Baker and Sinkula, 1999,). Market orientation has also increasingly become one of the important roles when the organization is in a highly-competitive industry in Indonesia s banking environment. Market orientation is considered important because it focuses on the organization to continuously gather information based on the needs of customers. This collected information will be used as consideration in creating values for customers (Slater and Narver, 1995). Market-oriented organization will formally conduct activities to generate market intelligence and disseminate the intelligence to all departments and respond to follow up on what is needed and expected by the customers (Baker and Sinkula, 1999). Market orientation is influenced by the factors of organizational systems, such as culture, leadership, organization structures and systems, and has some impacts on business performance and the employee s satisfaction and commitment (Jaworski and Kohli, 1993; Hurley and Hult, 1998, Suryani, 2003; 2006, Anwar and Sohail, 2003, Castro, et al., 2005, Azis and Yasin, 2004), and also influenced by learning orientation. Hence, this study aims to develop a conceptual model of the relationship among the variables of organizational systems that were done partially, to be integrated in the banking industry that have different characteristics from other industries. Market Orientation FRAMEWORK The development of market orientation is inseparable from that of a business philosophy that stresses on the importance of customeroriented company. Market orientation is considered important because it dose not only focus on the customers, but also on all stakeholders and the environment that affects business activity. From the perspective of culture, market orientation is seen as a business philosophy which is considered effective and efficient to create the necessary behaviors so that it can create superior value for buyers who will directly contribute to sustainable business performance (Naver and Slater, 1990). Market orientation consists of three essential components sush as customer orientation, competitor orientation and coordination among functions. 3

4 Asian Journal of Business and Governance Customer orientation requires a thorough understanding of the whole value chain of buyers in order to provide value-added of products offered. In that case, manufacturers need to struggle for increasing the benefits for buyers, especially those related to cost and quality of products in order to compose values to its buyers. Competitor orientation involves some activities in comprehending short-term s strengths and weaknesses and long-term s capability. The category of competitor itself is not merely the current competitor but also potential ones in the future. Coordination of resources among functions in the company should be performed to create superior value for customers. Each individual within each function in the company potentially has a contribution to the creation of value for the buyers. In addition, creating value for buyers is not simply a function of the marketing department but is a task of the whole organization through a harmonious coordination and cooperation. From the perspective of behavior, some research studies (Jaworski and Kohli, 1993, 1996; Matsuno and Mentzer, 2000, Megickes & Warnaby, 2008) state that market orientation involves three main activities: 1) to generate market intelligence, 2) to disseminate information from the results of market intelligence, and 3) responsiveness, in investigating the respondents of organization and in taking action of market information which have been received, will determine the level of organizational responsiveness. The Role of Organizational Systems Factors Market orientation as organizational culture in its development is inseparable from a variety of factors that exist in the organizational system. According to Jaworski and Kohli (1993), there are three important factors that affect the market orientation, such as: a) top management, b) interdepartmental dynamics, and c) organizational structure and system. One of the top managements factors that influence work behavior is a style of leadership. The results of Horng and Chen s research (1998) revealed that the employee-oriented style of leadership affects the activity of producing intelligence and responsiveness. Research conducted by Suryani (2003) on the media companies showed leadership styles affect the market orientation. 4

5 The Development of Market Orientation Based on Organizational Perspective... Suryani The second factor is the structure of organization and rewards system. Yet, every organization has a special characteristic of formalization and centralization aspects in decision-making. On the one hand, formalization which refers to the degree, of which rules, procedures, instructions and written communication standardized, will have an impact on the communication swiftness and positive influence on the information flow, thus expected to have positive impact towards market orientation (Pelham, 2000). On the other hand, centralization which shows the higher level of concentration in decision-making authority will hamper the communication swiftness. In this case, reward system is part of the organizational systems designed to direct a working behavior. More importantly, rewards which are based on market performance have proven the ability to influence the market orientation (Suryani, 2005). The Benefits of Market Orientation A number of empirical studies conducted previously indicate that market orientation provides four main benefits, specifically: Finance. The result of the researches showed that market orientation will improve business performance (Jaworski and Kohli, 1993, Megicks & Warnaby, 2008). In general, companies that focus on high market orientation would have a better profitability. Research conducted by Slater and Narver (1995), and Suryani (2003) signifies that market orientation affects the Return on Assets (ROA), in sales and new product s success. Customers. Market-oriented company will continuously make efforts to respond to the needs of each customer. Employees. The effect of market orientation on employees can be explained by the activities that occur in the market-oriented companies. Jaworski and Kohli (1993) state that the higher the company s market orientation, the higher the employees enthusiasm to achieve job satisfaction in the corporation. 5

6 Asian Journal of Business and Governance Innovation. Market-oriented companies will be encouraged to always seek new ideas and innovative thinking to meet the needs and desires of consumers. A research from Hurley and Hult (1998) found that market orientation affects the innovation from a company. Jaworski and Kohli (1993) developed a conceptual framework that explains that market orientation is influenced by factors that include organizational characteristics of top management, organizational structures and systems (formalization, centralization, departmentalization, and rewards system), and interdepartmental dynamics. Based on that framework, this research found that the top management factors that emphasize market-orientation have positive effect on developing market orientation while risk avoidance from top management insignificantly influences market orientation. The organizational system includes the formalization and centralization has insignificant effect on the market orientation. The research yielded findings different from Menon, Jaworski, and Kohli s research (1997) which proved that formalization and centralization affect the increase of organizational conflict, which in turn, also the behavior of producing, using, and disseminating information. Voss and Voss (2000) also stated that organizational characteristics which include decentralization, formalization, controlling system and coordination among functions are the variables related to market orientation. Research which has been conducted on small industries reveals that formalization has a positive influence on market orientation (Pelham, 2000). In addition, research which was conducted by Horng and Chen (1998) showed that educational level (in marketing experience) has a positive effect on market orientation, whereas risk avoidance and employees-oriented in leadership style are insignificant in influencing market orientation. Those variables are only significant to the half of market orientation variables (Intelligence development and market responsiveness). The effects of rewards system (market-based reward) from various researches have shown different results. For example, research by Jaworski and Kohli (1993) and Suryani (2003) revealed that rewards system has a positive effect on market orientation. On the contrary, research by Horng and Chen (1998) showed that rewards system has insignificant effect on the market orientation. 6

7 The Development of Market Orientation Based on Organizational Perspective... Suryani Market orientation and learning orientation as variables of organizational culture can be observed from behaviors and activities. Furthermore, learning orientation as one of the company cultures, like market orientation, has strong bond with the on-going process and organizational system in the company (Plunkett and Attner, 1997: 278). Hence, it is most likely that learning orientation is influenced by centralization, formalization, and rewards system. According to George and Jones (2002: 567), decentralized structure will strongly affect the learning culture and learning innovation of a company. Therefore, in order to boost learning culture and learning innovation, the company should decentralize the structure. In addition to organizational structure and system, factor of the leaders and style of leadership play important roles in shaping corporate culture. One of the leadership styles that have been applied by executives in handling business situation can change transformational leadership style rapidly. Transformational leadership style is an important role of leadership behavior in transforming organizational cultures. This is due to the market orientation and learning orientation which become parts of a culture within the company. In general, it is most likely that the leadership style influences the market orientation and learning orientation (Nahavandi, 2000: 189). Transformational leadership benefits the job satisfaction to each staff, provides confidence and optimism, and encourages staffs to be more active, provides a clear vision, encourages creativity through empowerment, and creates a supportive environment for creativity and interpersonal relationships which are necessary conditions for the continuity of market orientation and learning orientation (Nahavandi, 2000: 189) There is a relationship between market orientation and learning orientation (Suryani, 2003). Previous research also found that learning orientation affects the behavior of processing information, as part of market orientation activities Sinkula, Baker and Noordewier (1997). Market orientation and learning orientation is seen as a source of competitive advantage that will affect the company s business performance (Narver and Slater, Many studies found that the market orientation affects business performance (Slater and Narver,1994); Jaworski and Kohli (1993); Suryani (2006). In depth, Pelham and Wilson s research (1996) proved that market orientation has a positive influence on the business performance, quality of the 7

8 Asian Journal of Business and Governance product, and success of new product and profitability. There is both direct and indirect relationship between market orientation and business performance (Pelham and Wilson, 1996). It is called indirect relationship because market orientation has a positive influence in advance on the positional advantages and can directly affect the profitability of the business because market orientation has a positive influence on profitability. Figure 1 presents conceptual framework of the effect of organizational system on market orientation and business performance. Figure 1 Conceptual framework of the effect of leadership, centralization, centralization, formalization, reward system, and learning orientation on market orientation and business performance in banking industry OBJECTIVES OF THE STUDY In relation to the research background and its framework, this research is pursued for the following objectives. (1) to determine the 8

9 The Development of Market Orientation Based on Organizational Perspective... Suryani direct impact of organizational factors (leadership styles, decisionmaking systems, formalization, reward systems, and learning orientation) on the market orientation of the banking institutions; (2) to determine the impact of organizational factors (leadership styles, decision-making systems, formalization, reward systems, and learning orientation) on the sustainable business performance in a banking institution; and, (3) to determine if market orientation has significant influence towards the sustainable business performance in a banking institution. Research Design and Sampling MATERIALS AND METHODS Research was conducted by survey, using the questionnaire as a means of basic data collection (Uma Sekaran, 2006). It also uses explanatory research design since the aim of this research is to explain the causal relationship among variables through hypothesis testing and build a suitable conceptual framework from various variables related to market orientation in the banking industry. The population of this research is banking industries in East Java, Indonesia. The sampling technique is proportional stratified random sampling, involving 128 respondents in the managerial levels. Variables and Measurement Leadership refers to transformational leadership style which is measured by the respondents assessment of the ways and behaviors for influencing the employees in which it is characterized by personal charisma, personal inspirations, personal intellectual stimulation, and personal considerations. This measurement is adapted from Multi Factor Leadership Questionnaire (MLQ) conducted by Bass (1990) in Likert scala with seven point-rating. Centralization is measured by the respondents assessment, by using decision-making concentration in determining the working policies and the working procedures. The measurement uses a modified Likert scale, developed by the instruments from Menon, Jaworski and Kohli 9

10 Asian Journal of Business and Governance (1997). The indicator and the dimension: The policies (the dimensions: the improvement of the product and fixing price), and decisions regarding procedures (the dimensions: the working procedures of each department or office, the working procedures business goals and the working procedures objectives every year). Formalization is measured from the respondents assessment, in which the rules, procedures, instructions, and written communications are standardized. These are measured by Likert scale with seven alternatives or seven point-rating consisting of four items. The indicators are set based on the instruments by Menon, Jaworski and Kohli (1997), such as: employment disciplines and employment regulations, working procedures, duty instructions/technical implementations, written reports, and correspondences. Reward system is measured from the respondents perceptions, in which the ability of composing a good relationship with customers, customers satisfaction, selling performances, and the ability to provide information about the market as the background in giving rewards to the employees are taken into account. Learning orientation is the perceptions from branch office management on the organizational commitment to the importance of learning within the organization, togetherness in vision, and organization s openness to accept new ideas. This measurement instrument is modified from an instrument developed by Sinkula, Barker and Noordewier (1997) and Grinstein (2008). Market Orientation takes place when the company applies the marketing concept shown by the activity in generating market intelligence, disseminating the results of intelligence and information about the market throughout the whole organization, and the result of responsiveness. Sustainable business performance is measured from the respondents rating from the growing number of customers, revenue, customers satisfaction and employees commitments. Research Instruments All instruments are measured using a modified Likert scale with seven point rating. First, the validity testing is by the internal 10

11 The Development of Market Orientation Based on Organizational Perspective... Suryani consistency approach to obtain the validity of items/higher value of the items. The testing is performed using a confirmatory factor analysis. In addition, this research uses a significance level of a 0.05 valid point. All tests are performed using SPSS version 13. Second, the reliability testing is conducted using the alpha coefficient in internal consistency, commonly known as Cronbach Alpha. It is performed with 13, 00 SPSS version. Measuring instrument is considered reliable when the coefficient value is > 0, 6 (Malhotra, 2009). Data Analysis Technique In accordance with the purpose of research, data analysis is done using SEM (Structural Equation Modelling) which is one of statistical techniques that allows the testing of a relatively complicated and simultaneous relationship. Structural equality model has the equation: Y1 = β 1 X 1 + β 2 X 2 + β 3 X 3 + β 4 X 4 + β 5 X 5 + ς 1 Y2 = Ύ 1 Y 1 + ς 2 Notes: Y1 = market orientation; Y2 = business performance; X 1 = leadership style; X 2 = centralization; X 3 = formalization; X 4 = rewards system; X 5 = learning orientation β 1. 5 = intercepts; = error factor. ς 1.2 RESULTS AND DISCUSSION The analysis is conducted by SEM through AMOS 4.0. Based on the Critical Ratio value (CR) and the significant probability of df = 220 at level of significance 0, 05. It is found that variables which have significant effects on the other variables in accordance with the 11

12 Asian Journal of Business and Governance developed conceptual framework, are as follows: 1. The significant effects on market orientation are leadership style, formalization, and learning orientation. 2. The significant effects on the performance of banking business are market orientation, learning orientation, and rewards system. From the analysis for determining the direct effect, indirect effect, and total effect, the results can be seen as in Table 1. Table 1. The coefficient, critical ratio, significance probability test results of the variables affecting market orientation and business performance Variables Coefficient Estimation Standard CR Error Standard Probability (p) Results Market Orientationß Leadership Style Market Orientationß Centralization Market Orientation ß Formalization Market Orientationß Learning orientation Market Orientationß Rewards System Performance ß market orientation Performance ß Learning Orientation Performance ß leadership style Significant Insignificant Significant Significant Insignificant Significant ,272 0,023 Significant -0,198-0,207 0,198-1,050 0,294 Insignificant 12

13 The Development of Market Orientation Based on Organizational Perspective... Suryani Continuation of Table 1 Performance ß Centralization Performance formalization ß Performance ß Rewards system Significant 0, Insignificant 0, Significant Table 2. The direct, indirect and total effects of interrelationship of variables Direct Effects Variable Reward system Learning Orientation Formalization Centralization Leadership style Market orientation Business performance Market orientation Business Performance Indirect Effects Market orientation Business Performance Tota effects Market Orientation Business Performance Variables that Influence Market Orientation Leadership It is found that transformational leadership has significant effect on market orientation. It can be proved from the value of CR that is 13

14 Asian Journal of Business and Governance of 3,421 with significant probability (p) = in the significant level of Thus, the hypothesis that leadership style has a positive and significant effect on market orientation is accepted. This also means that the more often leaders apply the transformational leadership style, the higher market orientation is in the banking environment. The degree of the direct influence of leadership style towards market orientation is 51.2 percent. The results of this study support the previous research conducted by Suryani (2002) which revealed that the transformational leadership style has a positive effect on encouraging the employees to be more active in developing market orientation culture. Transformational leadership style of being able to communicate vision, to generate ideas, and to give inspiration to the employees is also effective in developing market orientation. Generally, leadership style also shapes value, behavior, and other factors related to the organizational culture (Nahavandi, 2000). Centralization The effect of centralization on market orientation is positive but insignificant. This is shown by the value of CR that is of 0.916, p = From the significant probability of 0,05, it is larger than significant level. The degree of the direct influence of centralization towards market orientation is 6.4 percent. Thus, the results support the research by Pelham and Wilson (1996) asserting that the effect of decentralization is insignificant on the market orientation. These results are similar to the findings of Jaworski and Kohli (1993) which also proves that centralization has insignificant effect on market orientation. The insignificant effect of centralization based on several empirical findings, is caused by a formal or informal communication that is well-formed, although the organization applies a high standard of centralization. Yet, it has no impact on the dissatisfaction of working and interdepartmental conflicts that are dysfunctional (Menon, et al., 1997). Therefore, it does not impede the flow of information for the continuity of market orientation. 14

15 The Development of Market Orientation Based on Organizational Perspective... Suryani Formalization The results show that formalization has a significant and positive effect on market orientation. This is indicated by the CR value of and significant probability of It means this hypothetical research which states that formalization has a positive effect on market orientation is acceptable. Thus, the higher the formalization is, the higher the market orientation is. The results of this study support the previous research conducted by Pelham and Wilson (1996) and Pelham (2000) stating that the formalization has a positive effect towards market orientation. Based on such findings, it is recommended that market-oriented banking institutions possess several clear procedures and good communication among divisions and employees. The existence of high formalization allows banks to implement the procedures more easily and quickly so that they can respond to the customers needs. The degree of total effect of formalization on market orientation is percent. Learning Orientation This analysis indicates that the learning orientation has positive and significant effects on market orientation. This is shown by the CR value of with significant probability of (p) of This result supports the research from Sinkula, et al. (1997) which stated that learning orientation has a positive effect on organizational responsiveness in the market and the velocity in responding the market changes. The degree of the total effect of learning orientation on the market orientation is 32.5 percent. In banking industries with high competition with the customers increasing demands, learning orientation is vital for encouraging the development of market orientation culture. Reward System Information reveals that the effect of rewards system on market orientation is insignificant. All the results are inconsistent with previous research by Horng and Chen (1998) in Taiwan, stating that reward system has a positive effect but the effect is insignificant (1998). The degree of the total effect of reward systems on the market 15

16 Asian Journal of Business and Governance orientation is 5.6 percent. In banking environment, reward system based on marketing performance has long been applied so that it can be unusual as well as not fairly able to encourage the employees to develop market orientation. The Variables Influencing Business Performance Leadership Style The effect of leadership style towards business performance is statistically insignificant. This is shown by the CR value that is of -1,050 with significant probability (p) = 0,294. It also indicates that, although leadership has an important role in achieving organizational aim, as a sustainable business performance in banking industries, it still shows indirect aspect. Thus, this is relevant to that by Bass (1990), stating that transformational leadership style has a positive effect on the teamwork, but, later on, it also has a positive effect on business performance. Thus, the leadership style has an indirect effect on business performance. Centralization The result implies that decision-making system (centralization) has a negative and significant effect on business performance, as shown that the CR value is and significant probability (p) of Therefore, that result is relevant to the previous research. Centralization has a contribution to a solid teamwork, communication and conflict, in which, later on, it finally has an effect on business performance. The more centralized the leadership is, the longer time for banking management in the branch and sub-branch level is to rapidly respond to the market requirements and market needs, and it will provide a bad effect on business performance. Formalization This analysis indicates that the direct influence of formalization on business performance is positive but insignificant. This draws 16

17 The Development of Market Orientation Based on Organizational Perspective... Suryani from CR value = 0,281 with significant probability (p) = 0,779. This result supports the research conducted by Menon, et al. (1996) which portrays the 0, 08 low correlation with formalization towards business performance which is measured from market performance. Rewards System This result shows that the effect of rewards system towards business performance in banking institutions is significantly positive. This can be proven by the CR value that is with p of The existence of reward system based on marketing performance has a positive effect on encouraging the success of banking business performance. Reward system is generally designed by the organization to support and achieve a better performance. Such findings have compromised the previous researches, merely relating reward system to market orientation. However, they do not investigate its direct effect on business performance. Hence, in certain situations, by the time the reward system has been well-arranged, it is proven to improve business performance, especially in banking industries. Learning Orientation The testing results using AMOS 4.0 program have shown that the effect of learning orientation is significant and positive. Therefore, it strengthens the previous opinions and theories stating that learning orientation is the pre-eminent competitive source has impact on business performance (Baker and Sinkula, 1999). In a conceptual framework--which has not empirically been tested such as by Hurley and Hult (1998) stated that market orientation and learning orientation have important roles in shaping innovation so that it affects business performance. When related to the research results, it has finally proven that research conducted by Hurley and Hult was correct and, therefore, it strengthens the view that learning orientation has also important role. Besides that, it also has positive effect on business performance. All in all, learning orientation is valuable because it permits organization to exploit opportunities and neutralize threat from the environment (Farrel, et.al, 2008). 17

18 Asian Journal of Business and Governance Market Orientation It shows that market orientation has a positive significant effect on business performance. This is proven by the CR value of with significant probability (p) of 0,001. This finding is relevant to and consistent with the previous research by Slater and Narver (1994), Jaworski and Kohli (1993), Pelham and Wilson (1996), Pelham (2000), Horng and Chen (1998) Voss and Voss (2000), proving that market orientation has a positive effect on business performance. Research conducted by Jaworski and Kohli (1993) also concluded that market orientation has a positive effect on business performance. Pelham and Wilson (1996) in small industries with the same result stating that market orientation has a positive effect towards relative product quality, the successful of new products, market needs which are the indicator of business performance. A research by Suryani (2006) also indicates that the significant effect of market orientation towards business performance in the media company. This research is done specifically on banking industries supporting the previous researches which were conducted in different industrial settings, with a different measurement of business performance. The direct effect of a number of market orientation on business performance is 54,9 percent. CONCLUSIONS Organization system is a very important condition for developing market orientation. Leadership style particularly transformational leadership, formalization, and learning orientation have direct effect significantly on market orientation in the banking industry. The variables that have significant effect to business performance are market orientation, rewards system, and centralization. In this research, market orientation has a significant effect towards business performance. Through a conceptual model which has been produced in this research, the implication is that transformational leadership, accurate formalization, and learning orientation need to be well-designed in order to facilitate the development of market orientation. Besides, 18

19 The Development of Market Orientation Based on Organizational Perspective... Suryani rewards system (market-based reward system), centralization, market orientation are the important factors in the banking industry that has impacted on the accomplishment of a sustainable business performance. LITERATURE CITED Anwar, SA. and M S. Sohail, 2003 Testing market orientation of bank managers in the emerging economy of Brunei, International Journal of Bank Marketing, pp Aziz, N.A and N.M. Yasin The influence of market orientation on marketing competency and the effect of internet marketing integration, Asia Pacific Journal of Marketing and Logistics, pp Baker, W., J. Sinkula 1999 The synergetic effect of market orientation and learning orientation on organizational performance, Journal of the Academy of Marketing Science, 27: Bass,B.M From Transactional to transformational leadership: learning to share the vision, Organizational Dynamics, Winter, pp Castro, C.B., E.M. Armarion, and MES, Del Rion 2005 Consequences of market orientation for customers and employees, European Journal of Marketing, 39: Farrel, M.A., W. Oczkowski, and Radwan Kharabcheh Market orientation, learning orientation and organizational performance in International Joint venture, Asia Pacific Journal Of Marketing And Logistics, 20 (3): George, J.M, Jones, and Jones G.R Organizational Behavior. New Jersey: Pearson Education, Inc. 19

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