Interdepartmental Dynamics and Firms’ Market Orientation: An Empirical Evidence from Service Firms in Tanzania

Abstract

This paper examines the relationship between interdepartmental dynamics and
market orientation of service firms in Tanzania. The study used a sample of 177
hotels, insurance agents, tour operators and travel agents from seven regions in
Tanzania. Complex random sampling was used to select 177 firms. It involved
purposive sampling to ensure inclusion in the sample of hotels, insurance
agents, tour operators and travel agents. Simple random sampling was used to
pick final firms that constituted the sample.  Analysis of Moment Structures was
used to estimate the structural equation model using Maximum Likelihood
Method. The study used MARKOR to measure market orientation of service
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Diana-Bupe Philemon Mwiru
firms in Tanzania while interdepartmental dynamics were measured by a scale
developed and tested by Jaworki and Kohli (1993). Findings indicated that
interdepartmental dynamics (defined as interdepartmental conflict and
interdepartmental connectedness) relate to market orientation of service firms in
Tanzania. Specifically, results showed that interdepartmental conflict negatively
influences on intelligence dissemination and organizational responsiveness
components of market orientation but has no influence on intelligence
generation component. Furthermore, findings from the study showed that
interdepartmental connectedness influences positively on intelligence
dissemination and organizational responsiveness components of market
orientation but has no influence on intelligence generation.  On the basis of
findings, the paper recommends to organizations to manage interdepartmental
conflicts at the earliest possible stage and nurture teamwork among departments
for them to implement market orientation. Empirical findings from the study
contribute to theory of antecedents to market orientation.

Key words: interdepartmental dynamics, market orientation, strategic orientation