The Interrelationship ofthe Market-Driving Approachand the Organizational Culture : A qualitative study of the market-driving companies

University essay from Umeå universitet/Handelshögskolan vid Umeå universitet; Umeå universitet/Handelshögskolan vid Umeå universitet


Thee market-driving approach has been cited by several business academic scholars (Jaworski,Kohli, & Sahay, 2000; Carpenter, Glazer, & Nakamoto, 2000; Kumar, Scheer, & Kotler, 2000;Harris & Cai, 2002; Hills & Sarin, 2003; Carrillat, Jaramillo, & Locander, 2004; Schindehutte,Morris, & Kocak, 2008) as a significant approach of the market-oriented company that canprovide a sustainable competitive advantage. Moreover, the organizational cultures developed bythe transformational leadership behavioral style are likely to play an important role in themarket-driving approach (Carrillat et al., 2004). Hence, it is necessary for the market-orientedfirm to understand the interrelationship between these two elements in order to develop asuccessful competitive position in the long-run.The main purpose of our thesis is to create a framework for understanding the interrelationshipbetween the market-driving approach and the organizational culture, which is applicable for amarket-oriented firm. To achieve this objective, we have to identify the types of organizationalcultures and leadership behavioral styles, which are occupied in a market-driving company.Furthermore, we also have to define the relationship between the market-driving approach andthe organizational culture; whether the market-driving approach or the organizational culture isthe origin of effect to the other.To answer our research question, a qualitative approach was applied by conducting semistructuredinterviews with two case studies, which are well-known market-driving companiesoperating in Thailand, IKEA Thailand and Land and Houses. We scope the area of study only inThailand according to our ability of understanding, analyze and access the sources of informationregarding Thai companies.From the research findings, both IKEA and Land and Houses share a similarity of theirorganizational culture, adhocracy and market cultures, and their leadership behavioral style,transformational leaderships. The relationship between the organizational culture and the marketdrivingapproach within these two companies reveals only one direction; their organizationalcultures led by transformational leadership stimulate their market-driving approach. Moreover,we also found that transformational leadership itself can directly generate the market-drivingapproach.Hence, this result provided us with a new conceptual framework that indicates thetransformational leadership as the main factor, which directly and indirectly develops themarket-driving approach.

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