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The role of market orientation in public housing companies: A study of MO’s effect on construction strategies
University of Gävle, Faculty of Education and Business Studies, Department of Business and Economic Studies, Business administration. KTH, Bygg- och fastighetsekonomi.ORCID iD: 0000-0003-0084-007x
2018 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The development of public housing companies in Sweden is strongly influenced by legal, economic, and demographic changes. The companies long tradition of taking responsibility for customer welfare in living have recently been criticized for excessive dominance over price setting, which is claimed to give them competitive advantages in the housing market. New legislation in 2011 requires financial return on investment, implying increased competition with radical changes for the companies. Because of the law, they find themselves transitioning from the role of being responsible for living conditions in Sweden to having to work in a businesslike manner with increased competition.The purpose of this dissertation is to analyze how the public housing companies’ deal with market orientation constructs and what their impact is on construction strategy choices. Theoretically, the market orientation concept is seen as a tool for companies to create superior value for the customers and influence strategic performance, which is a relationship tested and analyzed in this dissertation.The research was conducted through data collection stages using qualitative and quantitative methods. In the first stage, a qualitative pilot study was conducted with interviews of 15 managers in 11 public housing companies in central Sweden. In the second stage, two quantitative comparative studies of public and private housing companies in declining markets in central Sweden were conducted, collecting data from 23 (22 survey respondents) public and 37 private housing companies (16 respondents). In the third and final stage, two quantitative studies were conducted, collecting data from all 289 public housing companies (165 respondents) in Sweden.Results of the five studies show, firstly, that economic condition in the municipality have a major impact on the housing companies’ construction strategies, causing them to act innovatively in order to create superior customer value. Secondly, market orientation efforts contribute to competitive advantages in growing markets, while weak economic conditions limit the companies’ construction strategy choices in declining markets. After analyzing the link between market orientation constructs and construction strategy in declining markets, results showed that the public housing companies demonstrate higher responsiveness to customer demands compared to the private sector, but these have no effects on construction strategy. Thirdly, the analysis of moderating (external) and mediating (corporate social responsibility) effects on the market orientation and construction strategy relationship confirms that economic conditions in society influence construction strategy planning and decisions. The results of the mediating effects of CSR indicate that environmental and social issues have a positive influence on the market orientation and construction strategy relationship.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2018. , p. 72
Series
TRITA-ABE-DLT ; 1833
Keywords [en]
Public housing companies, market orientation, construction strategies, innovation, moderating and mediating effects, strategic performance
National Category
Business Administration
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:hig:diva-27973ISBN: 978-91-7729-930-1 (electronic)OAI: oai:DiVA.org:hig-27973DiVA, id: diva2:1251035
Public defence
2018-10-15, Kollegiesalen, KTH, Stockholm, 13:00 (Swedish)
Opponent
Supervisors
Available from: 2018-09-26 Created: 2018-09-26 Last updated: 2018-09-26Bibliographically approved
List of papers
1. Market and innovation orientation typology: proposition and illustrations
Open this publication in new window or tab >>Market and innovation orientation typology: proposition and illustrations
2016 (English)In: Marketing Intelligence & Planning, ISSN 0263-4503, E-ISSN 1758-8049, Vol. 34, no 3, p. 376-393Article in journal (Refereed) Published
Abstract [en]

Purpose – The purpose of this paper is to develop a typology based on the market orientation (MO) and innovation orientation (IO) of firms, and to illustrate the extent to which public housing companies (PHCs) fit into this framework.

Design/methodology/approach – A qualitative study of 11 PHCs in central Sweden was conducted to classify their positions in the typology. Interviews with semi-structured and open-ended questions were used to collect the data.

Findings – Four PHC types were identified by combining high and low MO and IO. This study offers insights on the importance of combining MO and IO. The overall findings show that MO and IO combination is not static and must be handled according to context. The MO-IO typology developed could be tested in a quantitative study on a larger sample of public or combined public and private housing companies.

Research limitations/implications – An empirical study comparing public and private housing companies on the basis of the proposed typology in relation to economic contingencies in the environment would further knowledge in this area.

Practical implications – The current study gives managers an indication of their position in the typology, which can be used as a tool for improving performance.

Originality/value – This paper describes PHCs within a proposed typological framework.

Keywords
market orientation, innovation orientation, customer-led, responsiveness, economy, public housing, typology
National Category
Economics and Business
Identifiers
urn:nbn:se:hig:diva-20702 (URN)10.1108/MIP-04-2015-0081 (DOI)000376201200005 ()2-s2.0-84964203131 (Scopus ID)
Available from: 2015-11-30 Created: 2015-11-30 Last updated: 2019-10-14Bibliographically approved
2. The market intelligence impact on strategic performance in declining markets
Open this publication in new window or tab >>The market intelligence impact on strategic performance in declining markets
2017 (English)In: International Journal of Applied Business and Economic Research, ISSN 0972-7302, Vol. 15, no 15, p. 457-473Article in journal (Refereed) Published
Abstract [en]

This study examines how companies in declining markets operate in the context of market intelligence, responding to customer needs and applying them tostrategic performance. A quantitative survey was sent to 214 public housing companies. The results indicate that market intelligence creates commitment and is significant. A positive relationship was found between data gathering, dissemination, and responsiveness, which indicates that the companies comprehend market needs but companies have difficult to manage construction strategies that improve strategic performance. There was a low value of strategic performance; a link between market intelligence and the chosen strategy was not confirmed. Companies know what the market wants but base their decision on previous strategic performanceon economic conditions in the municipality instead.

Place, publisher, year, edition, pages
Serials Publications, 2017
Keywords
Market orientation, market intelligence, public housing companies, strategic performance, declining market
National Category
Business Administration
Identifiers
urn:nbn:se:hig:diva-25136 (URN)2-s2.0-85027345356 (Scopus ID)
Available from: 2017-08-31 Created: 2017-08-31 Last updated: 2019-10-11Bibliographically approved
3. Sustainable strategies in a declining housing market: a comparative study
Open this publication in new window or tab >>Sustainable strategies in a declining housing market: a comparative study
2018 (English)In: International Journal of Management Practice, ISSN 1477-9064, E-ISSN 1741-8143, Vol. 11, no 4, p. 400-421Article in journal (Refereed) Published
Abstract [en]

The purpose of this study is first to examine and comparesustainable strategies within public and private housing companies in decliningmarkets in central Sweden. Then, the study evaluates the impact of newlegislation that requires public housing companies to act in a ‘businesslike’way, in the same way as a long-term private company. A quantitative studywas conducted based on a survey sent to 72 housing companies. The resultsshow that public housing companies are more strategy oriented than privatehousing companies. The results can be viewed as an on-going interactionprocess, where a company’s strategies affect its profit. The study aims toincrease the understanding of activities within housing companies in adeclining market that engage the companies in sustainable strategies toimprove their market knowledge and profit.

Keywords
sustainable strategy; declining market; construction; renovation; demolition; social corporate responsibility.
National Category
Business Administration
Identifiers
urn:nbn:se:hig:diva-27857 (URN)10.1504/IJMP.2018.095169 (DOI)2-s2.0-85054501997 (Scopus ID)
Conference
International Conference on a multidisciplinary View on Sustainable Life and Business: Sus-Lab’, November 2016, Bangkok, Thailand
Available from: 2018-09-06 Created: 2018-09-06 Last updated: 2019-10-08Bibliographically approved
4. Moderating effects on the market orientation and strategic performance relationship in public housing
Open this publication in new window or tab >>Moderating effects on the market orientation and strategic performance relationship in public housing
2019 (English)In: Baltic Journal of Management, ISSN 1746-5265, E-ISSN 1746-5273Article in journal (Refereed) Epub ahead of print
Abstract [en]

Purpose - The purpose of this study is to examine how external factors moderate public housing companies’ market orientation and strategic performance relationship.

Design/methodology/approach – The quantitative method was applied to data from a survey sent to 289 public housing companies in Sweden. A hierarchical, multicollinearity diagnostics–moderated regression analysis is used to test the research hypotheses.

Findings – The results reveal moderating factors. The companies take several initiatives to inform themselves about customers’ needs and distribute the information within the company, but economic conditions, as well as market and technological turbulence in the municipalities, moderate the relationship between market orientation and strategic performance. Economic conditions make it difficult for public housing companies to strategically act based on market needs when making decisions and planning construction strategies (strategic performance).

Research limitations/implications – This study is limited by focusing on public housing companies, a sector that differs radically from the open market. The study highlights the effects of moderating factors that are important for companies’ strategic performance and long-term construction strategies. From this limited focus, researchers might use the results to compare both similar and different market situations.

Practical implications – The results of the study are useful for companies facing a similar market situation of external moderating constraints. The result might be used in future research related to the area in focus.

Originality –This research adds new knowledge to market research by including the impact of economic conditions, which provide insight into how to develop and use market knowledge in real estate and public housing markets.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2019
Keywords
Market orientation, moderating, strategic performance, public housing, construction strategies
National Category
Business Administration
Identifiers
urn:nbn:se:hig:diva-27974 (URN)10.1108/BJM-08-2018-0309 (DOI)2-s2.0-85067044265 (Scopus ID)
Available from: 2018-09-26 Created: 2018-09-26 Last updated: 2019-08-27Bibliographically approved
5. The Mediating Role of CSR on the Market Orientation and Strategic Performance Relationship: A Study of the Public Housing Companies in Sweden
Open this publication in new window or tab >>The Mediating Role of CSR on the Market Orientation and Strategic Performance Relationship: A Study of the Public Housing Companies in Sweden
2019 (English)In: Sustainability, ISSN 2071-1050, E-ISSN 2071-1050, Vol. 11, no 6, article id 1537Article in journal (Refereed) Published
Abstract [en]

This article serves to analyze the impact of corporate social responsibility (CSR) on (1) the market orientation and strategic performance relationship related to public housing companies’ choice of construction strategies and (2) the companies’ responsiveness to gathered and disseminated customer information. The quantitative method is applied, with data analyzed by the PROCESS analysis. The result is based on a survey sent to 289 public housing companies in Sweden. Previous research suggests a positive relationship between market orientation and strategic performance, which was not confirmed by this study. When testing the mediation effects of CSR on the market orientation and construction strategies relationship, these hypotheses were confirmed related to social and environmental dimensions—not economic ones. This study was limited to public housing companies, a sector that radically differs from the situation of companies in the open market. The study increases public housing companies’ knowledge of CSR effects on the market orientation and strategic performance relationship. This result contributes useful information for companies implementing CSR in their activities. The study highlights the importance of integrating CSR into an organization’s market orientation work and shows how CSR improves the companies’ ability to meet customers’ strategic needs.

Place, publisher, year, edition, pages
MDPI, 2019
Keywords
market orientation, mediating, CSR, strategic performance, public housing companies, construction strategies
National Category
Business Administration
Identifiers
urn:nbn:se:hig:diva-27975 (URN)10.3390/su11061537 (DOI)
Available from: 2018-09-26 Created: 2018-09-26 Last updated: 2019-10-11Bibliographically approved

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