Examining the Impact of Market Orientation and Michael Porter's Five Forces of Competitiveness on the Performance of Imported Car Assembly Companies (Case Study: Kerman Motor)
Keywords:
Commercialism, Competitiveness, Michael Porter, Performance, Kerman MotorAbstract
Based on research conducted in recent decades on market orientation, positive and desirable results have been achieved, and researchers now believe that in addition to marketing, market orientation plays a major role in enhancing organizational performance. Despite the lack of attention from organizations and service companies to customers, competitors, and market orientation, this has led to a reduction in competitive advantage and consequently, poor organizational performance. How a firm can enhance its competitive capability is the issue this article addresses. The purpose of this research is to examine the impact of market orientation and Michael Porter's five forces of competitiveness on the performance of Kerman Motor. This study is a descriptive and applied research, utilizing a questionnaire as the data collection tool. After studying books, articles, and conducting interviews with experts, the identified indicators were established. Following the inferential data analyses, which included testing the significance of the questionnaire items based on the factors, examining the relationship between observable and latent variables, the validity of the research hypotheses was confirmed, and the relationships between independent and dependent variables were modeled using structural equation modeling. Finally, all the proposed hypotheses were validated, and the competitiveness components based on Michael Porter's model and market orientation based on Narver and Slater's model were evaluated. The factors influencing the performance of the company were identified as follows: suppliers (0.78), new entrants (0.71), competitive rivalry (0.69), substitute products (0.66), customer orientation (0.61), buyers (0.51), interdepartmental coordination (0.43), and existing competitors (0.41). Therefore, the company can improve its performance and increase its competitive capability by focusing on variables with higher priority.
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