Jovanov, Tamara and Sofijanova, Elenica and Davcev, Ljupco and Temjanovski, Riste (2015) Inter-functional coordination and entrepreneurial firms’ financial performance: a developing economy. In: REDETE.
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Abstract
The main purpose of this paper is to verify the significance of the internal part of market orientation, i.e. inter-functional coordination (IFC) for the financial performance of the entrepreneurial firms in a developing economy. The objectives are: 1. To measure the level of each of the variables of the scale (IFC 1: Current and future needs of consumers are discussed in all of the concerned departments; IFC 2: When a department discovers something important about the consumers or the competition, it quickly informs the other concerned departments; IFC 3: There is extensive communication between different departments in terms of consumer experience and market changes); 2. To determine the average level of IFC and, 3. To confirm the effect IFC has on profitability. The methodology included both quantitative and qualitative methods and, the research was done in entrepreneurial firms from the food production industry. This research is a part of an ongoing project entitled: “Strengthening the business capacity of women entrepreneurs in Republic of Macedonia, as a developing country”. Primary data was derived from questionnaires and semi-structured follow-up interviews. Secondary data was collected from books, journals and academic articles. Data was analyzed with IBM SPSS19. The conclusions are given on the basis of descriptive and deductive statistics. The results show that firms of different sizes demonstrate diverse level of implementation of IFC i.e. medium – sized and large firms have higher average levels of IFC than small firms. The results also corroborate the significant relationship as well as the direct influence of the level of IFC on business profitability. The main limitation of this study is that it analyses a single industry in a given period of time and, the (small) size of the sample. However, the paper has some practical implications: to achieve higher financial performance and thus, higher success, firms must adopt and implement inter – functional coordination, as a part of the market orientation process. Also, the measurability of this internal part of market orientation on the basis of the MARKOR and MKTOR scales makes available a valuable tool for control of its implementation. The value of the paper derives from the verification of the significance of the relationship between IFC and profitability, in a different business sector and with a different research subject from those analyzed hitherto by the literature. It also demonstrates the relationship among the dimensions that form inter – functional coordination in the firm.
Keywords: Inter – functional coordination, market orientation, financial performance, entrepreneurship, developing economy
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Subjects: | Social Sciences > Economics and business |
| Divisions: | Faculty of Economics |
| Depositing User: | Tamara Jovanov |
| Date Deposited: | 09 May 2016 09:26 |
| Last Modified: | 19 Mar 2021 09:45 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/15777 |
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