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Listening in and Out: Listening To Customers and Employees To Strengthen An Integrated Market-Oriented System.
Listening in and Out: Listening To Customers and Employees To Strengthen An Integrated Market-Oriented System.
Listening in and Out: Listening To Customers and Employees To Strengthen An Integrated Market-Oriented System.
Management, College of Business, Loyola University New Orleans, 6363 St. Charles Avenue, New Orleans, LA 70118, United States
Retired/Marketing, College of Business, Loyola University New Orleans, 6363 St. Charles Avenue, New Orleans, LA 70118, United States
a r t i c l e
i n f o
Article history:
Received 1 September 2014
Received in revised form 4 January 2016
Accepted 5 January 2016
Available online 19 January 2016
Keywords:
Market orientation
Listening to customers
Listening to employees
Organizational listening environment
Internal marketing orientation
a b s t r a c t
While volumes of research have been dedicated to listening to customers as part of a market-oriented strategy,
very little attention has been given to the mechanisms that disseminate the information internally to the
employees who need it to meet and exceed customer requirements. A multidisciplinary exploratory study was
initiated to investigate how an organization's listening environment facilitates both organizational and employee
outcomes. Building on theory from marketing, management, and communications, the impact employee beliefs
about the organization's listening environment was shown to relate to both the external market orientation and
the individual's performance and commitment to the organization. Focusing on a small number of representative
variable in lexicon theoretical linkages, a structural equation model was tested utilizing managerial data across a
wide range of management levels of a major retail organization, as a preliminary foray into a potential multiple
disciplinary research program.
2016 Published by Elsevier Inc.
http://dx.doi.org/10.1016/j.jbusres.2016.01.002
0148-2963/ 2016 Published by Elsevier Inc.
3592
that directs employees to use the market intelligence to take customerdriven actions that win sales and gain loyalty (Jaworski & Kohli, 1996;
Slater & Narver, 1995).
Clearly, the interaction between employees and customers is critical
to a successful market-oriented strategy (Lings & Greenley, 2005), and
emboldening employees to perform market-oriented behaviors
(Brown et al., 2002) creates linchpins for increasing customer loyalty
(Jaworski & Kohli, 1993; Larson & Sasser, 2000). With customer loyalty
mirrored in the level of employees commitment, Larson and Sasser
(2000) suggest, Highly satised employees exhibit a series of positive
behaviors which allow them to do a better job of delighting their
customers (p. 44). As a key part of MO strategy, the desire to satisfy
customers must be ingrained in the culture, so that employee attitudes
and behaviors align with the aim of creating superior competitive value
for the customer (Hartline & Ferrell, 1996). Unmistakably, leaving
to chance the internal management side of the MO equation naively
jeopardizes the full value of the MO strategy.
A cultural artifact under management control, the OLE can bolster
employeecustomer relationships because organizational effectiveness
depends on open and transparent internal communication (Bansal,
Mendelson, & Sharma, 2001; Lings, 2004; Lings & Greenley, 2005). As
stated succinctly by Jaworski and Kohli (1993), [the] greater the extent
to which individuals across departments are directly connected (or
networked), the more they are likely to exchange market intelligence
and respond to it in a connected fashion (p. 56). Empirical evidence
of this contention is provided by Conduit and Mavondo (2001), in
which internal communication and information sharing are shown to
drive internal customer and external market orientations. Lings and
Greenley (2005) highlighted the critical importance to future MO
research in linking employee needs with a company's MO, such that management should align market-driven needs with employee behaviors in a
mutually advantageous interaction. Thus, both inwardly and outwardly,
an MO strategy unies the organization and simultaneously increases
the likelihood of customer satisfaction and employee fulllment.
While the literature is replete with methods for listening to customers, much less is known about engendering a proper internal listening culture. That is, while much is written about applying resources to
listen externally (e.g., Hernon & Matthews, 2011), parallel processes
for listening to employees has escaped researchers' attention. Drawing
from the communications literature, specically the work of Brownell
(1994); Gilchrist and van Hoeven (1994); Jacob and Coghlan (2005);
and Johnston, Reed, and Lawrence (2011), OLE captures a critical aspect
of organizational performance and employee perceptions. Recent empirical research suggests the more employees believe the organization
listens to their feedback the more likely they are to commit to the
organization (Reed, Goolsby, & Johnston, 2014). Heretofore silent in
MO management theory, listening to employees yields a powerful
internal factor for implementing a holistic MO.
Employee
Organizational
Commitment
Organizational
Listening
Environment
MarketOrientation
Employee
Performance
Fig. 1. Structural research model of the impact of listening environment on market orientation and employee outcomes.
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6. Methods
A global retailer hosting a company leadership conference in the
United States, the sample allowed for a single corporate-level communication environment with inter-location variance, a range of management
status, and a stable industry context in which listening to customers
clearly drives organization's success. Surveys were completed by 101
conference participants. Demographics validate the desired diversity,
including 43% female and 52% male; 60% were Caucasian, 28% were
African American, 3% were Hispanic, and 2% were other, and ages ranging from 25 to 61 years, with a mean and median near 40. Further analysis
revealed diversity across job characteristics with titles grouped as 15%
store managers, 9% co-managers, 35% assistant manager, and 25% specialty area managers. With respect to length of tenure, years in current jobs
ranged from 2 months to 30 years with a mean of 9 years and a median
slightly lower than 8 years. The signicantly long tenure of the respondents reinforces the sustainability of the organization's management
workforce and, assumedly, corporation's strategy and culture.
Based on the research objectives and sample characteristics (Byrne,
2013; Davik, 2013; Gefen, Straub, & Rigdon, 2011; Gefen, Straub, &
Boudreau, 2000), hypotheses were tested using structural equation
modeling (SEM). Additionally, bootstrapping analysis was utilized for
mediation analysis due to the small sample size and desire to reduce
the effects of random sampling error (Kenny, 2014; Shrout & Bolger,
2002). Following the two-step SEM approach (Anderson & Gerbing,
1988) using AMOS V22.0.0 software, a conrmatory factor analysis
(CFA) assessed the psychometric properties of the latent constructs
because CFA allows an evaluation of t of measured items to latent theoretical constructs, recognizing measurement error in the observed
measures (Gefen, Straub, & Rigdon, 2011; Schreiber, Nora, Stage,
Barlow, & King, 2006). The results showed the reliability and validity
of the measurement model being satisfactory for further structural analysis. Thus, we performed a structural model analyses to evaluate the direct, indirect, and total effects between employees' perceptions of the
Table 1
Conrmatory factor analysis: maximum likelihood dimensions, standardized loadings,
item means and standard deviations, and goodness of t summary by factor.
Factor
Mean Standard
loading
deviation
Dimensions
Employee performance
Employee organizational commitment
EC1
EC2
EC3
EC4
Market orientation
CO1
CO2
CO3
CO4
Organization listening environment
LE1
LE2
LE3
LE4
Goodness of t summary
CFI = .98
2(51, N = 101) = 61.86, p = .142
RMSEA =.046 with 90% condence
interval (.000, .083) and PCLOSE = .53
EEPerf
EECmt
4.05
4.44
.68
.55
n/a
.86
4.24
.49
.77
4.13
.62
.92
.86
.81
.75
.74
MO
.76
.65
.56
.79
OLE
.81
.87
.90
.87
Employee performance
Employee organizational
commitment
Organizational market orientation
Organizational listening environment
Note: N = 101.
p b .01.
EEPerf
EECmt
MO
OLE
.27
.11
.37
.34
.42
.41
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Table 3
Results of structural model analysis: direct effect of listening environment on market
orientation.
Parameter
Structural path
H1: OLE MO
Standardized coefcients
.47
Variance
R2 = .22
Note: N = 101.
p b .01.
Fig. 2. Finalized structural model (N = 101) of the impact of listening environment on customer orientation and employee outcomes.
3596
Table 4
Results of structural model analysis: direct effects model of listening environment on employee outcomes and mediation model of market orientation.
Parameter
Structural path
H2: OLE EECmt
H4: OLE MOEECmt
H3: OLE EEPerf
H5: OLE MO EEPerf
Goodness of t summary:
CFI = .978
2(61, N = 101) = 75.59, p = .099
RMSEA = .049 with 90% condence interval
(.000, .082) and PCLOSE .497
Standardized coefcients
.47
Variance
R2 = .22
.39
R2 = .22
Mediation, indirect
effect
Standardized coefcients
Variance
Signicance (p-value)
.36
R2 = .13
p = .05
.41
R2 = .17
p = .51
Note: N = 101.
p b .01, p b .05.
Table 5
Results of bootstrapping mediation analysis: market orientation as a mediator between
IMO-listening environment and employee commitment.
Parameter
H4: OLE MO EECmt
a
Estimates
.076a
(0.01, 0.34)
While the results of this study suggest a signicant mediated relationship between OLE and employee commitment via employee marketoriented beliefs, the same was not true for employee performance. Nevertheless, OLE did have a direct impact on employee performance, further
highlighting its importance. Only future research in a broader research
context can clarify why this relationship did not materialize, as in other
research (e.g., Jyoti & Sharma, 2012; Ahmed & Raq, 2003). Additionally,
while our study clearly lacks generalizability, given the infantile nature of
the OLE as a managerial construct, the highly controlled nature of our
study provides assurance and encouragement to those who have worked
cross-disciplines toward understanding listening as a resounding component of the organizational internal climate (e.g., Brownell, 1994; Gilchrist
& van Hoeven, 1994).
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9. Conclusion
Despite the limitations, the results of this study provide initial
evidence for only previously theorized ideas, including (1) listening to
employees can be studied as an important organizational culture characteristic, paralleling the studies on listening to customers; (2) by
listening in, managers can positively inuence perceptions of an
organization's MO that, in turn, inuence higher organizational commitment; and (3) a positive OLE can directly inuence employee performance. Through superior market knowledge and marketplace
responses, creating a positive OLE can build synergistic employeeemployee and employeecustomer connectedness and effective customer
solutions needed for sustainable organizational success. Often underappreciated and easily overlooked, even discounted, creating a work environment in which listening to employees holds equal value to listening
to customers can ignite a contagious need to satisfying customers that,
in turn, creates a hunger for more listening.
Appendix A
Summary of literature most relevant to key constructs.
Key construct
Primary disciplines
Prototypical research
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Management and marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Management and Marketing
Marketing
Marketing
Contribution
Market orientation
1990
1990
1992
1993
1993
1993
1994
1995
1995
1997
1998
1999
2000
2000
2000
2001
2002
2003
2004
2005
2008
Construct development
Protability
Organizational strategy
Antecedents/consequences
Scale development
Customer voice
Organizational competition
Construct development
Construct development
Customer voice
Innovation
Organizational results
Protability
Customer focus
Market driven
Organizational competition
Account management
Customer orientation
Innovation
Antecedents/consequences
Construct development
(continued on next page)
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Appendix
A (continued)
(continued)
Key construct
Primary disciplines
Prototypical research
2012
2013
Customer mind-set
Organizational results
Contribution
1994
1995
1999
2000
2001
2001
2002
2002
2002
2003
2004
2004
2005
2005
2010
2012
Employee burnout
Employee management
Construct development
Internal culture
Employee behaviors
Culture
Employee performance
Employee behaviors
Customer mind-set
Management behaviors
Employee behaviors
Construct development
Scale development
Employee behaviors
Employee behaviors
Employee behaviors
2011
Multiple stakeholders
1992
1994
1994
2000
2005
2008
2011
2014
Organizational listening
Listening environments
Listening organizations
Employee trust
Organizational listening
Organizational results
Group listening scale
Employee behaviors
Stakeholder orientation
Organizational listening environment
a
b
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