Enhancing corporate social responsibility through market orientation practices in bottom of pyramid markets: with special reference to microcredit institutionsby Charles Jebarajakirthy, Paramaporn Thaichon, Dhanushanthini Yoganathan

Journal of Strategic Marketing

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Year
2015
DOI
10.1080/0965254X.2015.1063680
Subject
Marketing / Strategy and Management

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Enhancing corporate social responsibility through market orientation practices in bottom of pyramid markets: with special reference to microcredit institutions

Charles Jebarajakirthya, Paramaporn Thaichonb & Dhanushanthini

Yoganathanc a Faculty of Business and Law, Swinburne University of Technology,

Corner Wakefield Street, Hawthorn3122, Australia b S.P. Jain School of Global Management, 5, Figtree Drive, Sydney

Olympic Park2127, Australia c Faculty of Business Studies, University of Jaffna, Vavuniya, Sri

Lanka

Published online: 31 Jul 2015.

To cite this article: Charles Jebarajakirthy, Paramaporn Thaichon & Dhanushanthini Yoganathan (2015): Enhancing corporate social responsibility through market orientation practices in bottom of pyramid markets: with special reference to microcredit institutions, Journal of Strategic Marketing,

DOI: 10.1080/0965254X.2015.1063680

To link to this article: http://dx.doi.org/10.1080/0965254X.2015.1063680

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D ow nl oa de d by [N ew

Y or k U niv ers ity ] a t 0 4:3 5 0 2 A ug us t 2 01 5

Enhancing corporate social responsibility through market orientation practices in bottom of pyramid markets: with special reference to microcredit institutions

Charles Jebarajakirthya*, Paramaporn Thaichonb and Dhanushanthini Yoganathanc aFaculty of Business and Law, Swinburne University of Technology, Corner Wakefield Street,

Hawthorn 3122, Australia; bS.P. Jain School of Global Management, 5, Figtree Drive, Sydney

Olympic Park 2127, Australia; cFaculty of Business Studies, University of Jaffna,

Vavuniya, Sri Lanka (Received 10 February 2015; accepted 4 June 2015)

Market-oriented organizations are committed to understanding and serving customer needs. Customers become socially conscious, so market-oriented firms need to carry out ‘Corporate Social Responsibility’ (CSR) initiatives. The main aim of this study was to investigate the influence of market orientation on CSR among microcredit institutions. The findings of this study are useful for microcredit institutions and marketers operating in bottom of pyramid (BOP) market to enhance their CSR through market orientation practices. The sample comprised 250 managers of microcredit institutions operating in the rural areas of Sri Lanka. The surveys were administered for data collection. All the three components of market orientation, that is, customer orientation, competitor orientation, and inter-functional coordination significantly and positively influenced the CSR involvement. Adaptation to BOP Market Culture enhanced the positive influences of both customer orientation and inter-functional coordination, on CSR. From these findings, implications for theory and practice have been discussed.

Keywords: market orientation; customer orientation; competitor intelligence; CSR; bottom of pyramid market; microcredit 1. Introduction

Ensuring customer satisfaction is a primary objective of marketers. Customers expect value addition from their marketers, so marketers have the responsibility to ensure superior value to their customers (Fang, Chang, Ou, & Chou, 2014). It is suggested that organizations need to become market-oriented to provide customers with satisfaction and sustainable and superior value. Narver and Slater (1990) defined market orientation as ‘the organizational culture that most effectively and efficiently creates the necessary behaviours for the creation of superior value for buyers and, thus, continuous superior performance for the business’ (p. 21). Although there are other definitions for market orientation, this is considered a seminal definition for this term, which is applied even in recent research studies (Kibbeling, Van der bij, & Van weele, 2013; Urde, Baumgarth, &

Merrilees, 2013). Market-oriented businesses are committed to understanding both the expressed and latent needs of their customers, sharing this understanding broadly throughout the organization, and coordinating all the activities of business to create superior customer value (Fang et al., 2014). q 2015 Taylor & Francis *Corresponding author. Email: cjebarajakirthy@swin.edu.au

Journal of Strategic Marketing, 2015 http://dx.doi.org/10.1080/0965254X.2015.1063680

D ow nl oa de d by [N ew

Y or k U niv ers ity ] a t 0 4:3 5 0 2 A ug us t 2 01 5

Along the line of this argument, it is suggested that customers expect businesses to operate in a socially responsible manner (Powell, Podnar, & Golob, 2007). This was evidenced in a study conducted by Cone (2010) who revealed that 83% of consumers in the