Gábor NAGY PhD INSEEC Business School Paris Prof. József BERÁCS Kecskemét College, Corvinus University of Budapest

Transcription

1 Antecedents to the Market Orientation of Hungarian Higher Education Institutions and Their Performance Consequences: The Role of Managers in Fostering Market Orientation in the Organization Gábor NAGY PhD INSEEC Business School Paris Prof. József BERÁCS Kecskemét College, Corvinus University of Budapest Corvinus University of Budapest, 16th - 17th June, 2016

2 Agenda Introduction Research questions Theoretical background Hypotheses development Conceptual framework Scales Data and analysis Results Limitations and further research Gábor NAGY PhD, Prof. József BERÁCS 2

3 Introduction International markets far more complex than those of domestic markets: complexity of markets, increased need for information, difficulties related to information acquisition, diverse nature of products/services. orientation: proactiveness and risk taking in business and operational decisions (Kazem & Van der Heijden, 2006). Proactive approach to exporting success on export markets (Wood & Robertson, 1997). Universities: success on international markets requires managerial support and organizational systems that foster the process of internationalization. 3

4 Research questions 1) Will managements commitment and emphasis on export orientation increase export market orientation of a university? 2) Will export market oriented reward systems and export market oriented training systems boost export market oriented behavior of a university? 3) Will increased export market orientation of a university boost export market performance? 4

5 Theoretical background & hypotheses development main effects Favorable managerial attitudes towards exporting means greater allocation of time and resources to export activities (Gencturk et al., 1995), and also an increased need for export intelligence generation (Diamantopoulos & Cadogan, 1996). Management s emphasis on export market orientation is a signal about the importance of being responsive to export customer needs and the broader export environment (Cadogan et al., 2001). EMO = superior value for export customers (Day, 1999), positional advantage and long-term export performance (Day & Wensley, 1988; Hunt & Morgan 1995). EMO can also be employed in the higher education sector (Webster et al., 2006; Hammond et al., 2006; Kara et al., 2004; Küster & Avilés & Valenzuela, 2010). 5

6 Main effects hypotheses Hypotheses H1 The higher the management commitment s to exporting the higher the export market orientation of a university. H2 H3 The higher the top management s emphasis on export market orientation the higher the export market orientation of a university. The higher the export market orientation the higher the export performance of a university. 6

7 Moderation effects hypotheses Hypotheses H4a The greater the export market oriented rewards systems the stronger the relationship between management s commitment to exporting and export market orientation of a university. H4b The greater the export market oriented rewards systems the stronger the relationship between top management s emphasis on export market orientation and export market orientation of a university. H5a The greater the export market oriented training system the stronger the relationship between management s commitment to exporting and export market orientation of a university. H5b The greater the export market oriented training system the stronger the relationship between top management s emphasis on export market orientation and export market orientation of a university. 7

8 Conceptual model Management s Commitment to ing H 1 + Top Management s Emphasis on Market Orientation H 2 + Market Orientation H 3 + Performance H 4a,b H 5a,b Market- Oriented Reward Systems Market- Oriented Training Systems 8

9 Data and method 700 on-line and paper-based questionnaires sent out 156 responses (22% total response rate). Confirmatory factor analysis (CFA) was applied (χ 2 /df= , CFI= , RMSEA= ). By assessing discriminant validity the procedure outlined by Fornell and Larker (1981) was applied. Measurement scales: EMO (Cadogan et al., 2009); MCE (Gencturk et al., 1995); TMEEMO, EMORS and EMOTS (Jaworski & Kohli, 1993); EP (items from international marketing literature). Relationships in the conceptual model were analyzed with SmartPLS 2.0 (Ringle et al., 2005), moderation effects were assessed by product indicators approach (Hair et al., 2014). 9

10 Sample characteristics Size Market directions University Mean std Mean std BCE BGF BME DE DF EJF EKF ELTE KE KRF 1.00 n.a n.a. LFZE 1.00 n.a n.a. ME MKE 1.00 n.a n.a. MOME 1.00 n.a n.a. NYF NYME OE PE PTE PTK 1.00 n.a n.a. SE SZE SZF 1.00 n.a n.a. SZIE SZTE N = 131 Market directions (1 = <178, 2 = , 3 = > 211) 3,00 2,00 1,00 0,00 LFZE, SZF KE MOME, PTK OE KRF, MKE EJF DF PE SE NYME ME EKF SZIE BCE PTE ELTE NYF BME 0,00 1,00 2,00 3,00 Size (1 = <1,894, 2 = 1,895 9,856, 3 = >9,857) Note: a) Market directions: Foreign students come from the following groups of countries (please distribute 100 points among the following options): 1) neighboring countries, 2) Europe, 3) outside Europe. Market direction = 1 x neighboring countries + 2 x Europe + 3 x outside Europe (min. = 54.00, max. = 295, perc. = 178, perc. = 210) b) Size: How many full-time students are studying at your institution in the 2011/2012 school year? (min. = 100, max. = 30,000, perc. = 1,894, perc. = 9,856) DE SZE SZTE BGF 10

11 Table 1 Results of the single effects analysis Main effects results Hypothesis Relationships β (t-value) Hypothesis supported H1(+) Management s Commitment to ing (MCE) Market Orientation (EMO) (3.355)** Yes H2(+) H3(+) Top Management s Emphasis on Market Orientation (TMEEMO) Market Orientation (EMO) (0.255) No Market Orientation (EMO) Performance (EP) (3.967)** Yes **p<

12 Moderation effects results Table 2 Results of the moderation effects analysis Hypothesis Single effects β (t-value) Interactions β (t-value) H4a (3.355)** (0.964) H4b Management s Commitment to ing (MCE) Market Orientation (EMO) Top Management s Emphasis on Market Orientation (TMEEMO) Market Orientation (EMO) (0.255) Market-Oriented Reward Systems (EMORS) x Management s Commitment to ing (MCE) Market-Oriented Reward Systems (EMORS) x Top Management s Emphasis on Market Orientation (TMEEMO) (0.380) Hypothesis supported No No H5a H5b Management s Commitment to ing (MCE) Market Orientation (EMO) Top Management s Emphasis on Market Orientation (TMEEMO) Market Orientation (EMO) (3.355)** (0.255) Market-Oriented Training Systems (EMOTS) x Management s Commitment to ing (MCE) Market-Oriented Training Systems (EMOTS) x Top Management s Emphasis on Market Orientation (TMEEMO) (0.898) (0.512) No No 12

13 Moderation effects results: Interactions Table 3 Results of the moderation effects analysis Hypothesis Interactions β (t-value) Hypothesis supported H4a Market-Oriented Reward Systems (EMORS) x Management s Commitment to ing (MCE) (0.964) No H4b H5a H5b Market-Oriented Reward Systems (EMORS) x Top Management s Emphasis on Market Orientation (TMEEMO) Market-Oriented Training Systems (EMOTS) x Management s Commitment to ing (MCE) Market-Oriented Training Systems (EMOTS) x Top Management s Emphasis on Market Orientation (TMEEMO) (0.380) No (0.898) No (0.512) No 13

14 Summary results of the hypotheses testing There is a positive relationship between management s commitment to exporting (MCE) and export market orientation (EMO). Top management s emphasis on export market orientation (TMEEMO) does not eventuate in higher export market orientation (EMO). Putting more emphasis on export market orientation (EMO) increases export performance (EP) of universities. No moderation by export market-oriented reward systems (EMORS) and export market-oriented training systems (EMOTS). 14

15 Conceptual model nr. 2 Market- Oriented Reward Systems H 1b (+) H 2b (+) Market- Oriented Training Systems H 1a (+) H 2a (+) Management s Commitment to ing Top Management s Emphasis on Market Orientation H 3 (+) H 4 (+) Market Orientation Control variable: Market directions (neighboring countries, Europe, outside Europe) H 5 (+) Performance H 6 H 7 H 8 Coordination Formalization Centralization 15

16 Data and method model nr on-line and paper-based questionnaires sent out 156 responses (22% total response rate). Confirmatory factor analysis (CFA) was applied (χ 2 /df= , CFI= , RMSEA= ). By assessing discriminant validity the procedure outlined by Fornell and Larker (1981) was applied. Measurement scales: EMO (Cadogan et al., 2009); MCE (Gencturk et al., 1995); TMEEMO, EMORS and EMOTS (Jaworski & Kohli, 1993); ECR, EF and ECN (Cadogan et al., 1999 and Jaworski & Kohli, 1993); EP (items from international marketing literature). Relationships in the conceptual model were analyzed with SmartPLS 2.0 (Ringle et al., 2005), moderation effects were assessed by product indicators approach (Hair et al., 2014). 16

17 Main effects results control variable: market directions (model nr. 2) Table 4 Results of the single effects analysis (market directions) Hypothesis H1a(+) Relationships Market-Oriented Reward Systems (EMORS) Management s Commitment to ing (MCE) Market directions Neighb. count. Europe Outside Europe β (t-value) (1.293) (0.408) (2.089)** Hypoth. supported Yes H1b(+) Market-Oriented Reward Systems (EMORS) Top Management s Emphasis on Market Orientation (TMEEMO) Neighb. count. Europe Outside Europe (3.750)** (1.647) (1.218) No H2a(+) Market-Oriented Training Systems (EMOTS) Top Management s Emphasis on Market Orientation (TMEEMO) Neighb. count. Europe Outside Europe (1.925) (11.836)** (7.157)** Yes H2b(+) Market-Oriented Training Systems (EMOTS) Management s Commitment to ing (MCE) Neighb. count. Europe Outside Europe (6.221)** (6.127)** (4.312)** Yes **p<

18 Main effects results control variable: market directions (model nr. 2) Table 5 Results of the single effects analysis (market directions) Hypothesis H3(+) H4(+) H5(+) **p<0.05 Relationships Management s Commitment to ing (MCE) Market Orientation (EMO) Top Management s Emphasis on Market Orientation (TMEEMO) Market Orientation (EMO) Market Orientation (EMO) Performance (EP) Market directions Neighb. count. Europe Outside Europe Neighb. count. Europe Outside Europe Neighb. count. Europe Outside Europe β (t-value) (1.694) (4.782)** (4.525)** (1.290) (1.401) (1.812) (1.026) (2.532)** (8.117)** Hypoth. support ed Yes No Yes 18

19 Moderation effects results control variable: market directions (model nr. 2) Table 6 Results of the moderation effects analysis (market directions) Hypothesis H6 H7 H8 Market directions Single effects β (t-value) Interactions β (t-value) Neighb. Market (1.026) (3.236)** count. Orientation (EMO) (2.532)** Coordination (2.503)** (8.117)** Europe (ECR) x (3.552)** Outside Performance (EP) Market Europe Orientation (EMO) Neighb. count. Europe Outside Europe Neighb. count. Europe Outside Europe Market Orientation (EMO) Performance (EP) Market Orientation (EMO) Performance (EP) (0.615) (2.532)** (8.117)** (0.489) (2.532)** (8.117)** **p<0.05 Formalization (EF) x Market Orientation (EMO) Centralizatio n (ECN) x Market Orientation (EMO) (1.044) (0.949) (1.289) (1.284) (2.576)** (1.160) Hypoth. supported Yes No No 19

20 Summary results of the hypotheses testing (model nr. 2) I. When universities focus more on international markets export market-oriented rewards systems motivate managers to commit to exporting, but they don t boost top management s emphasis on exporting. training systems positively affect management s commitment to exporting, and top management s emphasis on EMO when the universities take an incentive to go to international markets. Commitment to exporting enforces management s willingness to enhance organization s international objectives, while top management s emphasis on EMO may not eventuate in increased EMO behavior. 20

21 Summary results of the hypotheses testing (model nr. 2) II. Reinforcing EMO in the organization eventuates in increased export performance when universities orient more towards international markets. Only export coordination moderates the EMO-export performance relationship. 21

22 Study limitations Relatively low sample size. Constraints stemming from cross sectional data. Lack of objective measures to track/assess universities export market activities/performance. Asymmetric data analysis (focusing on net effects) (Woodside, 2016). Size Small Medium Large Total Market Orientation Total

23 Future research Relying on multiple respondents from one organization (Cheng et al., 2013): Rector or deputy rector: 16 (12.31%), Dean or deputy dean: 86 (66.15%), Head of international office: 28 (21.54%). Using symmetric modeling (set-theoretic approach, fsqca) for studying complex organizational configurations (Ragin, 2008; Fiss, 2007). Multiple sources of information (collecting/reporting real-life contextual data) (Woodside, 2016). Studying organizational behavior dynamically (longitudinal data). 23

24 Symmetric modeling for studying complex organizational configurations ecr coordination Organizational systems configuration size Size ef formalization ee experience ecn centralization dint Degree of internationa -lization emors tmeemo Top management s emphasis on export market orientation marketoriented reward systems emors marketoriented training systems mce Management s commitment to exporting Management systems configuration eig information generation eid information dissemination cr Concentrated response market orientation configuration performance Organizational demographics configuration 24

25 Thank you for your attention! 25

26 Scales Market- Oriented Training Systems Market- Oriented Reward Systems Management s Commitment to ing Items APPENDIX I. scales 1) Our management supports training courses that help employees to become more oriented towards foreign students. 2) We tell to our new colleagues that serving international students is a top priority. 3) New member of our staff will learn the importance of exploring the needs of foreign students. 4) The performance of crew commissioned with foreign student recruitment is measured on how strong connections they build with foreign students. 5) Our crew commissioned with foreign student recruitment is evaluated on the bases of surveys among foreign students. 6) With our reward systems we encourage our employees to step up their efforts to meet the needs of foreign students. 7) The management of our higher education institution considers efforts related to the recruitment of foreign students important. 8) The management of our higher education institution considers an important goal to increase the activity related to the recruitment of foreign students. 9) The management of our higher education institution is actively seeking international market opportunities. Cr. Alpha

27 Scales Top Management s Emphasis on Market Orientation Market Orientation Items APPENDIX II. scales 10) It is essential to adjust to observed changes in foreign markets. 11) Our employees must react to the steps of our main competitors in foreign markets sensitively. 12) All our employees should seek to meet the emerging needs of our international students. 13) In our higher education institution we generate a lot of information concerning trends (e.g., regulations, technological developments, political, economic) in our export markets. 14) We constantly monitor our level of commitment and orientation to serving foreign student needs. 15) We slowly perceive changes taking place in foreign markets (e.g., regulatory, technological, and economic changes). 16) We regularly evaluate the effects of foreign market changes (e.g., regulatory, technological, and economic changes). 17) We collect a lot of information to understand the factors influencing foreign students' needs and expectations. Cr. Alpha

28 Scales Market Orientation Items APPENDIX III. scales 18) Too much information concerning our foreign competitors is discarded before it reaches decision makers. (R) 19) Information which can influence the way we serve our foreign students takes forever to reach the staff that deals with foreign student issues. (R) 20) Important information about our foreign students is often lost in the system. (R) 21) Information about our foreign competitors activities often reaches relevant personnel too late to be of any use. (R) 22) Important information concerning export market trends (regulation, technology) is often discarded as it makes its way along the communication chain. (R) 23) Our export business strategies are driven by our beliefs about how we can create greater value for foreign students. 24) Our export strategy for competitive advantage is based on our understanding of foreign students needs. 25) Our export business objectives are driven primarily by student satisfaction. Cr. Alpha

29 Scales Centralization Formalization Coordination Items APPENDIX IV. scales 26) The staff dealing with foreign students should seek the approval of superiors even in seemingly most insignificant questions. 27) The staff dealing with foreign students must request permission from superiors before every action. 28) The staff dealing with foreign students must obtain the approval of superiors in the first round before initiation any action. 29) The staff dealing with foreign students decides themselves on most issues. 30) The staff dealing with foreign students is free to make decisions without having to consult with any one in the organization. 31) The way things are going with foreign students are left on the staff dealing with foreign students. 32) In our higher education institution the international office and other functional units (e.g., economic directorate, departments, institutes, faculties etc.) help each other. 33) In our higher education institution faith in a team spirit is observed throughout the whole organization. Cr. Alpha

30 APPENDIX V. scales Scales Coordination Performance Items 34) Strong cooperation is observed among the international office and the functional units responsible for production. 35) In our higher education institution the different functional units (e.g., economic directorate, departments, institutes, faculties etc.) are driven by the same goal. 36) In our higher education institution the different functional units (e.g., economic directorate, departments, institutes, faculties etc.) are integrated to serve one purpose. 37) Conflicts in our organization are dissolved through communication and group problem solving methods. 38) To what extend are you satisfied with the tuition fee foreign students are paying for their education? 39) To what extent are you satisfied with the pace of entering the most important foreign markets in terms of student recruitment? 40) To what extent are you satisfied with the pace of entering new markets for student recruitment? 41) To what extent are you satisfied with the pace of entering new markets for student recruitment compared to main competitors? Cr. Alpha