BUS602: Marketing Management

The constructs used in the study are based on previously developed and used scales.

The respondents were asked to assess their firm on a Likert scale.

Environmental turbulence was used as a second order construct consisting of market turbulence and technology turbulence. Market turbulence is measured by considering the change in the composition of customers over a period of time and the change in preferences of the firm's customers over time. Technological turbulence is measured by taking into account the change in technology in an industry over a period of time.

Entrepreneurial orientation measures the innovative, proactive and risk seeking attributes of the firm. High entrepreneurial orientation indicates that the entrepreneur values innovation, proactiveness and has a high tolerance for risk. The items for this scale are based on the scale of Naman and Slevin.

Market orientation is measured using a modified scale based on the scale developed by Jaworski and Kohli. This scale consists of three sub constructs i.e. market intelligence generation, dissemination of market intelligence within the company, and responsiveness to market intelligence. The marketing capability construct was measured using the scale developed by Vorhies and Harker. Respondents were asked about various marketing capabilities in their firm ranging from new product development, pricing, promotion, and distribution of products along with marketing research capabilities and marketing management capabilities. Each of these sub-constructs was measured with multiple items.

Many researchers in the strategic management literature have measured the firm performance construct by keeping in view two dimensions i.e. financial performance (profitability, ROI, ROA, etc) and market performance (market share and sales growth, etc). This study has used the scale developed by Spanos and Lioukas that consists of market and financial performance. The market share and sales growth indicators measure the market performance. The return on investment and return on sales indicators measure financial performance. The respondents assessed their firm's performance relative to their main competitors.