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

Abstract

This paper examines the relationship between interdepartmental dynamics andmarket orientation of service firms in Tanzania. The study used a sample of 177hotels, insurance agents, tour operators and travel agents from seven regions inTanzania. Complex random sampling was used to select 177 firms. It involvedpurposive sampling to ensure inclusion in the sample of hotels, insuranceagents, tour operators and travel agents. Simple random sampling was used topick final firms that constituted the sample.   Analysis of Moment Structures wasused to estimate the structural equation model using Maximum LikelihoodMethod. The study used MARKOR to measure market orientation of service 1Diana-Bupe Philemon Mwirufirms in Tanzania while interdepartmental dynamics were measured by a scaledeveloped and tested by Jaworki and Kohli (1993). Findings indicated thatinterdepartmental dynamics (defined as interdepartmental conflict andinterdepartmental connectedness) relate to market orientation of service firms inTanzania. Specifically, results showed that interdepartmental conflict negativelyinfluences on intelligence dissemination and organizational responsivenesscomponents of market orientation but has no influence on intelligencegeneration component. Furthermore, findings from the study showed thatinterdepartmental connectedness influences positively on intelligencedissemination and organizational responsiveness components of marketorientation but has no influence on intelligence generation.   On the basis offindings, the paper recommends to organizations to manage interdepartmentalconflicts at the earliest possible stage and nurture teamwork among departmentsfor them to implement market orientation. Empirical findings from the studycontribute to theory of antecedents to market orientation. Key words: interdepartmental dynamics, market orientation, strategic orientation