Abstract

This study is to experientially verify that market orientation affect organizational performance toward social service marketization. social service marketization put pressure upon financial environment in nonprofit human service organizations and exacerbate competition between nonprofit human service organizations and profit organizations each other. For survival, nonprofit human service organizations in social service market where various supply organization participate needs sensitivity to the environment. For this purpose the need of introduction of market orientation is being raised. At this point this study is useful that measure the level of market orientation and analysis impact of market orientation toward organizational performance in nonprofit human service organizations. Data was collected from busan nonprofit human service organizations in participate voucher program, number of total organization is 92. The level of market orientation was 3.63. Analysis of the impact of market orientation to organizational performance used regression analysis through structural equation modelling. As a result of the analysis, market orientation was affected by organizational performance. Based on the results, this study suggests that nonprofit human service organizations should need market orientation centered organization management and sensitive response toward external environment.

Keywords

Nonprofit Human Service Organization;Marketization;Organizational Performance

File

Download PDF

References

1. 노연희, "비영리 사회복지조직의 시장지향성에 대한 탐색적 연구-장애인 직업재활시설을 중심으로", 한국행정학보, Vol.42, No.2, pp.305-326, 2008a.
2. 노연희, "사회복지조직의 자원동원성과에 영향을 미치는 요인의 구조적 관계-리더의 전문적 태도, 환경에 대한 인식, 그리고 시장지향성간의 관계", 사회복지연구, Vol.37, pp.91-116, 2008b.
3. 이견직, "장기요양시설의 시장지향성이 성과에 미치는 영향", 보건사회연구, Vol.29, No.1, pp.236-260, 2009.
4. S. Agarwal, M. K. Erramilla, and C. S. Dev, "Market orientation and performance in service firms: role of innovation," Journal of Services Marketing, Vol.17, No.1, pp.68-82, 2003. https://doi.org/10.1108/08876040310461282
5. G. Balabanis, R. E. Stables, and H. C. Phillips, "Market orientation in the top 200 british charity organizations and its impact on their performance," European Journal of Marketing, Vol.31, No.8, pp.583-603, 1997. https://doi.org/10.1108/03090569710176592
6. Y. Baruch and N. Ramalho, "Communalities and distinctions in the measurement of organizational performance and effectiveness across for-profit and nonprofit sectors," Nonprofit and Voluntary Sector Quarterly, Vol.35, No.1, pp.39-65, 2006. https://doi.org/10.1177/0899764005282468
7. R. Bennet and A. Sargeant, "The nonprofit marketing landscape: guest editor's introduction to a special section," Journal of Business Research Vol.58, pp.797-805, 2003.
8. R. Bennett, "Market orientation among small to medium sized UK charitable organizations: implications for fund-raising performance," Journal of Nonprofit & Public Sector Marketing, Vol.6, No.1, pp.31-45, 1999.
9. A. Boehm, E. Vigoda-Gadot, and N. Segev, "Market orientation in social services; an empirical study of motivating and hindering factors among israeli social workersm," Administration in Social Work, Vol.35, No.2, pp.138-160, 2011. https://doi.org/10.1080/03643107.2011.557593
10. A. Caruana, B. asesham, and M. T. Ewing, "The marketing orientation-performance link: some evidence from the public sector and universities," Journal of Nonprofit and Public Sector Marketing, Vol.6, No.1, pp.31-45, 1998. https://doi.org/10.1300/J054v06n01_03
11. R. Y. Chan and A. Chau, "Do marketing-oriented children and youth centers(CYCs) perform better: an exploratory study in hong kong," Journal of Professional Services Marketing, Vol.16, No.1, pp.15-28, 1998.
12. W. W. Clohesy, "Fund-raising and the articulation of common goods," Nonprofit and Voluntary Sector Quarterly, Vol.32, No.1, pp.128-149, 2003. https://doi.org/10.1177/0899764002250010
13. N. Collins and P. Butler, "When marketing models clash with democracy," Journal of Public Affairs, Vol.3, No.1, pp.52-62, 2002.
14. A. M. Eikenberry, "Refusing the market: a democratic discourse for voluntary and nonprofit organizations," Nonprofit and Voluntary Sector Quarterly, Vol.38, No.4, pp.582-596, 2009. https://doi.org/10.1177/0899764009333686
15. M. T. Ewing and J. Napoli, "Developing and validating a multidimensional nonprofit brand orientation scale," Journal of Business Research, Vol.58, pp.841-858, 2005. https://doi.org/10.1016/j.jbusres.2003.09.012
16. C. Flavian and F. J. Lozan, 'Market orientation in the spanish education sector'[CD-ROM]. In Farhangmehr(Ed.), Marketing in a changing world, proceeding of the European Marketing Acagemy, Braga, Portugal, 2002.
17. B. Gainer and P. Padanyi, "Applying the marketing concept to cultural organizations: an empirical study of the relationship between market orientation and performance," International Journal of Nonprofit and Voluntary Sector Marketing, Vol.7, No.2, pp.182-193, 2002. https://doi.org/10.1002/nvsm.178
18. B. Gainer and P. Padanyi, "The relationship between market-oriented activities and market-oriented culture: implications for the development of market orientation in nonprofit service organizations," Journal of Business Research, Vol.58, No.6, pp.854-862, 2005. https://doi.org/10.1016/j.jbusres.2003.10.005
19. W. R. George and F. Compton, "How to initiate a marketing perspective in a health services organization," Journal of Health Care Marketing, Vol.5, No.1, pp.29-37, 1985.
20. R. Glazer, "Marketing in an information-intensive environment: strategic implications of knowledge as an asset," Journal of Marketing, Vol.55, No.3, pp.1-19, 1991. https://doi.org/10.2307/1252143
21. L. I. A. Gonzalez, "The market orientation concept in the private nonprofit organization domain," International Journal of Nonprofit and Voluntary Sector Marketing, Vol.7, No.1, pp.55-67, 2002. https://doi.org/10.1002/nvsm.167
22. J. M. Gwin, "Constituent analysis: a paradigm for marketing effectiveness in the nonprofit organization," European Journal of Marketing, Vol.24, No.7, pp.43-48, 1990. https://doi.org/10.1108/03090569010139266
23. J. K. Han, N. Kim, and K. Srivastava, "Marketing orientation and organizational performance: is innovation a missing link?," Journal of Marketing, Vol.62, No.4, pp.30-45, 1998. https://doi.org/10.2307/1252285
24. H. Hansmann, "The role of nonprofit enterprise," Yale Law Journal, Vol.89, pp.835-901, 1980. https://doi.org/10.2307/796089
25. M. Harris, 'Voluntary management committees: the impact of contracting in the UK'. in Perri 6 and Kendall, J. (Ed.), The Contract Culture in Public Services, Arena, Aldershot, 1998.
26. L. C. Harris and E. Ogbonna, "Strategic human resource management, market orientation, and organizational performance," Journal of Business Research, Vol.51, No.2, pp.157-166, 2001. https://doi.org/10.1016/S0148-2963(99)00057-0
27. V. Hayden, "How to increase market orientation," Journal of Management in Medicine, Vol.7, No.1, pp.29-46, 1993. https://doi.org/10.1108/02689239310025730
28. R. D. Herman and D. O. Renz, "Nonprofit organizational effectiveness: Contrasts between especially effective and less effective organizations," Nonprofit Management and Leadership, Vol.9, No.1, pp.23-38, 1993.
29. R. D. Herman, "Methodological issues in studying the effectiveness of nongovernmental and nonprofit organizations," Nonprofit and Voluntary Sector Quartery, Vol.19, No.3, pp.293-306, 1990. https://doi.org/10.1177/089976409001900309
30. B. J. Jaworski and A. K. Kohli, "Marketing orientation: antecedents and consequences," Journal of Marketing, Vol.57, No.3, pp.53-70, 1993. https://doi.org/10.2307/1251854
31. A. Kara, J. E. Spillan, and O. W. DeShields, "An empirical investigation of the link between market orientation and business performance in nonprofit service providers," Journal of Marketing Theory and Practice, Vol.12, No.2, pp.59-72, 2004. https://doi.org/10.1080/10696679.2004.11658519
32. A. K. Kohli and B. J. Jaworski, "Market orientation: the construct, research propositions and managerial implications," The Journal of Marketing, Vol.54, No.2, pp.1-18, 1990. https://doi.org/10.2307/1251866
33. A. K. Kohli, B. J. Jaworski, and A. Kumar, A. "A measure of market orientation," Journal of Marketing Research, Vol.30, No.4, pp.467-477, 1993. https://doi.org/10.2307/3172691
34. P. Kotler and A. Andreasen, Strategic Marketing for Nonprofit Organizations, Englewood Cliffs, NY: Prentice-Hall, 1991.
35. M. Liao, S. Foreman, and A. Sargeant, "Market versus societal orientation in the nonprofit context," International Journal of Nonprofit and Voluntary Sector Marketing, Vol.6, No.3, pp.254-268, 2001. https://doi.org/10.1002/nvsm.151
36. C. H. Lovelock and C. B. Weinberg, Marketing for public and nonprofit managers, New York: John Wiley, 1984.
37. G. Lumpkin and G. Dess, "Clarifying the entrepreneurial orientation and linking it to performance," Academy of Management Review, Vol.21, No.1, pp.135-172, 1996.
38. L. E. Lynn, "Social services and the state: the public appropriation of private charity," Social Service Review, Vol.76, No.1, pp.58-82, 2002. https://doi.org/10.1086/324608
39. I. M. Macedo, J. C. Pinho, "The relationship between resource dependence and market orientation," European Journal of Marketing, Vol.40, No.5, pp.533-553, 2006. https://doi.org/10.1108/03090560610657822
40. M. H. Morris, S. Coombes, Schindehutte and J. Allen, "Antecedents and outcomes of entrepreneurial and market orientations in a nonprofit context: theoretical and empirical insights," Journal of Leadership & Organizational Studies, Vol.13, No.4, pp.14-38, 2007.
41. J. C. Narver and S. F. Slater, "The effect of marketing orientation on business profitability," Journal of Marketing, Vol.54, pp.20-35, 1990. https://doi.org/10.2307/1251757
42. R. P. Ormond, "A conceptual model of political market orientation," Journal of Nonprofit and Public Sector Marketing, Vol.14, No.1, pp.47-64, 2005. https://doi.org/10.1300/J054v14n01_04
43. P. Padanyi and B. Gainer, "Market orientation in the nonprofit sector; taking multiple constituencies into consideration," Journal of Marketing Theory and Practice, Vol.12, No.2, pp.43-58, 2004.
44. C. Pollitt, "Bringing consumers into performance management," Policy and Politics, Vol.16, No.2, pp.77-87, 1998.
45. N. M. Riccucci and M. K. Meyers, "Comparing welfare service delivery among public, nonprofit and porfit work agencies," International Journal of Public Administration, Vol.31, No.12, pp.1441-1454, 2008. https://doi.org/10.1080/01900690701756444
46. M. Sherer, "National service in Israel: Motivations, volunteer characteristics and levels of content," Nonprofit and Voluntary Sector Quarterly, Vol.33, No.1, pp.94-108, 2004. https://doi.org/10.1177/0899764003260659
47. A. Shoham, "Market orientations in the nonprofit and voluntary sector : a meta-analysis their relationships with organizational performance," Nonprofit and Voluntary Sector Quarterly, Vol.35, No.3, pp.453-476, 2006. https://doi.org/10.1177/0899764006287671
48. D. Sirmon, M. Hitt, and R. D. Ireland, "Managing firm resources in dynamic environments to create values: inside the black box," Academy of Management Review, Vol.32, No.1, pp.273-292, 2007. https://doi.org/10.5465/AMR.2007.23466005
49. S. F. Slater and J. C. Narver, "Does Competitive Environment Moderate the Market Orientation-Performance Relationship?," Journal of Marketing, Vol.58, No.1, pp.46-55, 1994. https://doi.org/10.2307/1252250
50. P. Smith, "Outcome-related performance indicators and organizational control in the public sector," British Journal of Management, Vol.4, No.3, pp.135-151, 1993. https://doi.org/10.1111/j.1467-8551.1993.tb00054.x
51. S. Toepler, "Conceptualizing nonprofit commercialism: a case study," Public Administration and Management: An International Journal, Vol.9, No.4, pp.1-14, 2004.
52. E. Vigoda-Gadot and F. Yuval, "The State of Bureaucracy: Public Opinion about the Performance of Government Agencies in Israel and the Role of Socioeconomic and Demographic Variables," International Journal of Public Opinion Research, Vol.16, No.1, pp.63-80, 2004. https://doi.org/10.1093/ijpor/16.1.63
53. G. B. Voss and Z. G. Voss, "Strategic orientation and firm performance in an artistic environment," Journal of Marketing, Vol.64, pp.67-83, 2000. https://doi.org/10.1509/jmkg.64.1.67.17993
54. V. R. Wood, S. Bhuian, P. Kiecker, "Market orientation and organizational performance in nonprofit hospitals," Journal of Business Research, Vol.48, No.3, pp.213-226, 2000. https://doi.org/10.1016/S0148-2963(98)00086-1

Cited by

1. Exploratory study on Structural Causal Relation of Market Orientation, Learning Orientation, and Organizational Performance in Social Welfare Organizations : Focused on Voucher Program Organizations vol.13, pp.6, 2013, https://doi.org/10.5392/JKCA.2013.13.06.212
2. The Effect of Market Orientation on Social Media Marketing Performance in Korean Financial Institutions vol.14, pp.5, 2014, https://doi.org/10.5392/JKCA.2014.14.05.332