Mind Your Product-Market Strategy on Selecting Marketing Inputs: An Uncertainty Approach in Indian Context

Authors: Susmita Ghosh, Bhaskar Bhowmick

Abstract:

Market is an important factor for start-ups to look into during decision-making in product development and related areas. Emerging country markets are more uncertain in terms of information availability and institutional supports. The literature review of market uncertainty reveals the need for identifying factors representing the market uncertainty. This paper identifies factors for market uncertainty using Exploratory Factor Analysis (EFA) and confirmed the number of factor retention using an alternative factor retention criterion ‘Parallel Analysis’. 500 entrepreneurs, engaged in start-ups from all over India participated in the study. This paper concludes with the factor structure of ‘market uncertainty’ having dimensions of uncertainty in industry orientation, uncertainty in customer orientation and uncertainty in marketing orientation.

Keywords: Uncertainty, market, orientation, competitor, demand.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1107559

References:

[1] McMullen, J. S., & Shepherd, D. A. Entrepreneurial Action and the Role of Uncertainty in the Theory of the Entrepreneur. Academy of Management Review, 2006.31(1): 132–152,
[2] Ghosh, S., Bhowmick, B., & Guin, K. K. Perceived Environmental Uncertainty for Startups: A Note on Entrepreneurship Research from an Indian Perspective. Technology Innovation Management Review, 2014.4(8): 27–35,
[3] Duncan, R. B. Characteristics of organizational environments and perceived environmental uncertainty. Administrative Science Quarterly, 197217:313-327
[4] Casson, M,. The Entrepreneur: An Economic Theory, 2nd ed. Martin Robertson, Oxford.1982
[5] Milliken, J. F., Three types of perceived uncertainty about the environment: State, effect, and response uncertainty. Academy of Management Review, 1987.Vol.12, 133–143,
[6] Miles, R. E., and Snow, C. C. Organizational strategy, structure, and process. New York: McGraw-Hill1978.
[7] Song, M. X. and Montoya-Weiss M. The effect of perceived technological uncertainty on Japanese new product development. Academy of Management, 2001.Vol. 44(1), 6.1-80.
[8] Matthews, C. H., & Scott, S. G. Uncertainty and Planning in Small and Entrepreneurial Firms: An Empirical Assessment. Journal of Small Business Management, 1995.33(4): 34.
[9] Starbuck, W. H. Organizations and their environments. In M. Dunnette (Ed.), Handbook of industrial and organizational Chicago: Rand McNally: 1069-1124.1976.
[10] Porter, M.E., How competitive forces shape strategy. Harvard Business review, 1979.57(2), 137-145
[11] Xu, F., & Wang, C., New Product Development, Strategy Crafting, and the Performance of Entrepreneurial Firms, International Conference on E-Business and E-Government. 2010.
[12] Lumpkin, G. T., and Dess, G.G. Clarifying the entrepreneurial orientation construct and linking it to performance, Academy of Management Review, 1996.21(1):135–172.
[13] Pelham A. M., and Wilson, D. T., Longitudinal study of the impact of market structure, firm structure, strategy and market orientation culture on dimensions of small-firm performance, journal of the Academy of Marketing Science, 1996.24(1),27-43.
[14] Abernathy, W. J., & Clark, K. B. Innovation: Mapping the winds of creative destruction. Research Policy 1985, 14: 3–22.
[15] Zirger, B. J. & Maidique M. A. A model of new product development: an empirical test’, Management Science, 1990. vol.36, p. 867-883
[16] Slovik, P., Market uncertainty and market instability, IFC Bulletin No 34,2011
[17] Chen, J., Reilly, R. R, and Lynn, S. G., The Impacts of Speed-to-Market on New Product Success: The Moderating Effects of Uncertainty, IEEE Transactions on Engineering Management, 2005.vol. 52(2)
[18] Leifer, R. and Mills, K. P., An information processing approach for deciding upon control strategies and reducing control loss in emerging organizations. Journal of Management, 1996.Vol. 22: 113-137
[19] Daft, R.L. Organization Theory & Design, Fifth Edition. New York: West. 1995
[20] Jaworski, B. J. and Kohli, K. A. Market Orientation: Antecedents and Consequences, Journal of Marketing, 1993.57, 53-70.
[21] Moriarty, R. T. and Kosnik, T. J., High-tech marketing: Concepts, continuity, and change, IEE Engineering Management Review, 1990,25– 35.
[22] Slovik, P., Market uncertainty and market instability, IFC Bulletin No.34, 2011
[23] Zhou, Kevin Z., David K. Tse, and Li J. J. Organizational Changes in Emerging Economies: Drivers and Consequences,” Journal of International Business Studies, 2006.Vol.37, pp. 248–63.
[24] Deshpande, R., and Farley U. J., and Webster Jr. E. F. Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis, Journal of Marketing, 1993.57, 23-27.
[25] Lawton, L., and Parasuraman A. The Impact of the Marketing Concept on New Product Planning, Journal of Marketing, 1980.44,19-25.
[26] Pierce J.L. and A.L. Delbecq. Organizational Structure, Individual Attitudes, and Innovation, Academy of Management Review, 1977. 2, 26-37.
[27] Han, K.J., Kim, N., and Srivastava, K. R. Market Orientation and Organizational Performance: Is Innovation a Missing Link? Journal of Marketing, 1998.Vol.62, 30-45.
[28] Kohli, K.A., and Jawaroski, J. B., Market orientation: The Construct , Research Propositions and Managerial Implications, Journal of Marketing, 1990.54, 1-18.
[29] Day, G. S. and Wensley, R. Assessing Advantage: A Framework for Diagnostic Competitive Superiority, Journal of Marketing, 1988,52, 1- 20.
[30] Slater, S. F. and Narver C. J., Market Orientation, Customer Value, and Superior Performance, Business Horizons, 1994b.37, 22-28.
[31] Dong, M. C., Y., Tse, D. K., and Cavusgil, S. T. Efficiency of Governance Mechanisms in China’s Distribution Channels, International Business Review, 2008.Vol.17, pp.509–519.
[32] Lau, C. M., Tse, K. D. and Zhou, N. Institutional Forces and Organizational Culture in China: Effects on Change Schemas, Firm Commitment and Job Satisfaction, Journal of International Business Studies, 2002.Vol. 33(3), pp.533–50.
[33] Makino, S., C.M. Lau, and R.S. Yeh , Asset-Exploitation Versus Asset- Seeking: Implications for Location Choice of Foreign Direct Investment from Newly Industrialized Economies, Journal of International Business Studies, Vol.33(3), pp. 403–4212002
[34] Buchko, A. A. Conceptualization and Measurement of Environmental Uncertainty: An Assessment of the Miles and Snow Perceived Environmental Uncertainty Scale. The Academy of Management Journal, 1994.37(2), 410 425.
[35] Downey, H. K., & Slocum, J. W. Uncertainty: Measures, research and sources of variation. Academy of Management Journal, 1975.18, 562- 578,
[36] Krause, D.R., The antecedents of buying firms’ efforts to improve suppliers, Journal of Operations Management. 1999.17 (2), 205–224.
[37] Lawrence, R. P. and Lorsch, W. J. Organization and Environments. Cambridge, MA: Harvard University Press,1967
[38] Gerloff, A. E., Muir, K. N., and Bodensteiner D. W., Three Components of Perceived Environmental Uncertainty: An Exploratory Analysis of the Effects of Aggregation, Journal of Management, 1991. 17(4), 749- 768
[39] Miller, D. K., Industry and Country Effects on Manager’s Perceptions of Environmental Uncertainties, Journal of International Business Studies, 1993.Fourth Quarter
[40] Jackson, S. E., Schuler S. R., and Vredenburg, J. D., Managing stress in turbulent times. In Anne W. Riley & Stephen J. Zaccaro, editors, Occupational stress and organizational effectiveness, 141-66; New York: Praeger.1987,
[41] Peng, M. W. The Resource-Based View and International Business. Journal of Management, 2001. 27(6): 803–829.
[42] Child, J. and Tse DK., China’s transition and its impact on international business. Journal of International Business Study, 2001.32(1),8-21
[43] Anastasiadou, D. S., Reliability and validity testing of a New scale for measuring attitudes toward learning statistics with technology. Acta Didactica Napocensia, 2011.Vol.4, No.1, :1-10
[44] Anastasiadou, D. S., Factorial validity evaluation of a measurement through principal components analysis and implicative statistical analysis. In Xatzidimou, D.X., Mpikos, K., Stravakou, P.A., & Xatzidimou K.D. (eds), 5th Hellenic Conference of Pedagogy Company, Thessaloniki: 341-348.2006.
[45] O’Connor P.B. SPSS and SAS programs for determining the number of components using parallel analysis and Velicer’s MAP test. Behavior Research Methods, Instruments, & Computers. 2000.32 (3): 396-402
[46] Patil, H. V., Singh, N. S., Mishra, S., and Donavan D. T., Efficient theory development and factor retention criteria: Abandon the ‘Eigen value greater than one’ criterion. Journal of Business Research. 2008. 61: 162–170
[47] Zwick, W. R., & Velicer, W. F., Comparison of five rules for determining the number of components to retain. Psychological Bulletin, 1986, 99:432-442.
[48] Wood, M. J., Tataryn, J. D., and Gorsuch, L. R., Effects of under- and over extraction on principal axis factor analysis with varimax rotation, Psychological Methods, 1996, Vol.1, 354-365
[49] Crawford, C. B., & Koopman, P. Inter-rater reliability of scree test and mean square ratio test of number of factors. Perceptual & Motor Skills, 1979. 49: 223-226.
[50] Streiner, D. L. Factors affecting reliability of interpretations of scree plots. Psychological Reports, 1998.83: 687-694.
[51] Horn, J. L. A rationale and test for the number of factors in factor analysis. Psychometrika. 1965. 30: 179-185.
[52] Hair, F. J., Black, C. W., Badin, N. J., Anderson, E. R., & Tatham, R. L. Multivariate Data Analysis. New Joursey, Pearson Education Inc., Chapter 3, 2005.
[53] Beckham, W. H., Competitive Strategy, Researcher Starters-Academic Topic Overview .2013.
[54] Han, K. J., Kim, N., and Srivastava, K. R. Market Orientation and Organizational Performance: Is Innovation a Missing Link? Journal of Marketing, 1998. Vol.62, 30-45
[55] Sexton, D L., and Van Auken P. A. Longitudinal study of Small business Strategic Planning. Journal of small Business Management. 1985. 23, 7-15
[56] Avlonitis, J. G., and Gounaris, P. S., Marketing orientation and its determinants: an empirical analysis. European Journal of Marketing, 1999. Vol.33 (11/12).1003-1037
[57] Felton, A., Making the marketing concept work, Harvard Business Review, 1959. Vol. 37(4), 55-56