Pratik Modi

Market orientation in nonprofit organizations: innovativeness, resource scarcity, and performance

The theory of market orientation, emerging from the context of for-profit organizations, has potential application and use in the nonprofit sector. This research proposes links between market orientation, innovativeness, resource scarcity, funding source, and performance related variables in the nonprofit context. Based on the empirical data from 579 nonprofit organizations in India engaged in service delivery to beneficiaries, the study shows that market orientation in nonprofit organizations improves peer reputation, beneficiary satisfaction, and innovativeness. However, market orientation alone is not enough. Innovativeness is the missing link that mediates the market orientation and effectiveness relationship. The study shows that market orientation does not help in attracting resources in the Indian context, a finding which runs counter to the evidences from previous studies carried out in the context of developed countries. The study finds that resource scarcity and funding sources do not moderate the market orientation and performance relationship. The implications for practitioners are discussed.

Rural Marketing Its Definition and Development Perspective

Definition and domain related issues of ‘rural marketing’ need further clarification and revision. Often, rural marketing is equated with marketing by multinationals in rural India. The extant literature on rural marketing has uncritically used the same theories, models, concepts and frameworks as have been used in the mainstream marketing discipline. So far, rural marketing has not produced its own unique theories, concepts, frameworks and distinct vocabulary. As a result, rural marketing cannot claim the status of a separate subdiscipline within the broader marketing discipline. This article provides a critique of the extant work in rural marketing and its dependence on the mainstream business marketing. It is argued that rural marketing must find its own distinct perspective before theory construction can begin in the field. After reviewing the literature on marketing and economic development, it is proposed that development of rural people should be the perspective of rural marketing. In this article, an outcome based definition and domain of rural marketing is proposed and a few potential areas for theory construction work to begin in the subject are suggested.

Uttarakhand State Cooperative Federation: Can it Help the Horticulture Farmers?

Uttarakhand state had a unique advantage of hilly weather that was suitable for cultivation of some fruits and vegetables, which were in great demand in plains during off-seasons there. Out of the total net margin accruing to the entire supply chain of these fruits and vegetables, only 25% went to the farmers despite they bearing disproportionately high market risk and the entire production risk. The Uttarakhand State Cooperative Federation (UCF) was created with a mandate to strengthen the cooperative structure in the state. The organisation had to decide a course of action that would improve the returns for the fruits and vegetable farmers in the state. The managing director of the federation had identified three alternative courses of action: first, to take up the primary value addition activity of an aggregator; second, to take up the higher value addition activities of processing fruits and vegetables; and third, to take up retailing of fruits and vegetables on behalf of the farmer members. The chairman of the federation was wondering which alternative was appropriate; or was there some other option too.

Toward a greater understanding of the market orientation and internal market orientation relationship

Abstract The study explores the relationship between market orientation (MO) and internal market orientation (IMO) using the process model of MO development. Data from 370 nonprofit organizations were analyzed using structural equation modeling with maximum likelihood estimation technique. The comprehensive CFA marker method was used to partial out the influence of social desirability bias on the substantive relationships. The study finds that MO works through IMO to elicit desirable employee outcomes, which also contributes to performance outcomes. IMO does not offer direct performance benefits, but it partially mediates the effect of MO on employee-related outcomes. Competing models offering alternative explanations are ruled out empirically by the superior fit of the theoretical model with the data. The study integrates IMO in Kohli and Jaworski’s model of antecedent and consequences of MO and encourages practitioners to embed IMO in their MO development plans.

Rural Marketing: Marketing to the Rural, Poor or Disadvantaged Consumers

The meaning of the word ‘rural’ is multi-dimensional. ‘Rural’ has been viewed in at least four different ways (see Halfacree 1993, 1995; Pandey 1996): urban–rural dichotomy view; census view; socio-cultural view; and rural as a state-of-mind. Most of the emerging economies of the world are predominantly ‘rural’ in charac-teristics. The meaning of rural and urban in the marketing context was debated as early as 1938 in a short paper which appeared in the Journal of Marketing by Meserole (1938). The author argues that the rural–urban is not a dichotomy but a continuum, and the Census classification of ‘rural’ on the basis of population number is not helpful to marketers as it gives no consideration to the overlapping ‘rural’ and ‘urban’ characteristics. This was also probably the call for marketing researchers to incorporate ‘rural’ in their research and knowledge building. Unfortunately, this has not happened. Marketing researchers continued to build marketing tools, techniques, concepts, frameworks and theories keeping the urban markets and western consumers in focus.

The meaning and relevance of internal market orientation in nonprofit organisations

ABSTRACT A large number of nonprofit organisations (NPOs) deliver welfare services in developing countries. Many find it difficult to retain their staff and to increase beneficiary satisfaction, which negatively affect their mission achievement activities. This research shows that internal market orientation (IMO) can help field-based NPOs address the managerial challenges. Towards this end, this research validates Lings and Greenley’s [(2005). Measuring internal market orientation. Journal of Service Research, 7(3), 290–305.] scale to measure IMO in field-based NPOs and establishes IMO’s relevance for them. Data from 370 NPOs were analysed using confirmatory factor analysis to validate the IMO construct in the nonprofit context, and structural equation modelling to show that IMO improves beneficiary satisfaction and staff retention rates in NPOs. The study enhances our understanding of IMO in NPOs and offers important managerial implications.

Market Separations for BOP Producers The Case of Market Development for the Chanderi Cluster Weavers in India

In this article, we study the Chanderi handloom cluster as a case of market development by applying and extending Bartels’ (1968) theory of market separations. We conduct 12 in-depth semi-structured interviews of various stakeholders involved in the process of market development and validate four market separations suggested by Bartels. Additionally, we also find evidence of a new (fifth) market separation, which we label as ‘social market separation’. We empirically argue that social separation is an equally important market separation that inhibits market development at the Bottom of Pyramid (BOP), often acting as a barrier to market development. It may manifest in various forms such as overbearing social customs and regressive socio-cultural practices that may adversely impact the BOP producers’ capacity to produce or reduce their access to the markets. The implications of our study for development organizations as well as for marketers include recognizing the importance of conducting market linkages programmes for BOP producers by efficient reduction of five market separations to accelerate market development at BOP, leading to developmental gains.

Message from the New Editorial Team

IJRM has entered its eighth year of publication. During this period it has established itself as a pioneering international journal of repute globally. It has attracted articles from both the developed and developing world and has made its due contribution towards creating a field of rural management. It has also been recognized as an important journal in the field of management internationally. All this has been made possible by the efforts of contributors, reviewers and the earlier editors Saswata Biswas and Debiprasad Mishra. We also thank the editorial board and the editorial advisory board for making significant contributions towards building quality in and the reputation of this journal. As a result, the journal has enjoyed wider circulation and readership from across the globe. From the next issue, the new editorial team is taking over the responsibility of editing this journal. This is an onerous task but we hope to put our best at it. The journal would broadly remain the same with its focus on rural issues and its commitment to build knowledge that helps the poor and marginalized sections of society. However, we are adding a few sections to the existing format of the journal. Since the focus of the journal is on rural management it is important to allow voices from the field to be heard. For this we are offering a platform to practitioners/researchers to discuss the problems and issues encountered in the field. This section would be known as ‘Notes from the Field’. Editorial

Vanraj Mini-Tractors: Is Small Beautiful?

This case presents the dilemma of the decision maker in selecting the most appropriate market segment for Vanraj 10 HP mini-tractors — an innovation from a small farmer in Gujarat, India. Four market segments were identified: small and marginal farmers, large farmers, industries, and horticulture farmers. Vanraj was economical and possessed all the features of a big tractor. Mr. Trivedi, the decision maker, believed that the tractor would serve the needs of small and marginal farmers better, but his colleagues wanted him to think further before selecting any particular market segment for targeting. This case is useful for exploring segmentation and targeting decisions in marketing.