Mind Your Product-Market Strategy on Selecting Marketing Inputs: An Uncertainty Approach in Indian Context
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.
[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
[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
@article{"International Journal of Business, Human and Social Sciences:70403", author = "Susmita Ghosh and Bhaskar Bhowmick", title = "Mind Your Product-Market Strategy on Selecting Marketing Inputs: An Uncertainty Approach in Indian Context", 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.", volume = "9", number = "5", pages = "1771-7", }
