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Enacting, Enabling, and Embracing Market Orientation: A study of Public–Private Dyads
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Karlstad Business School (from 2013). Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center (from 2013).
2021 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis contributes to an increased understanding of how public–private dyads enact (“what”), enable (“how”), and embrace (“why”) market orientation. Drawing on a multi-year study of Swedish public transport, the thesis shows that the nature of the relationship between public and private organizations plays an important role in how market orientation is undertaken in dyadic practice.

Through a longitudinal research approach, it was found that private providers’ involvement in market-oriented activities has increased, and that the dyadic actors are more frequently involved in disseminating activities such as meetings and informal contact. Providers’ increased role in the enactment of dyadic market orientation indicates a movement towards a more collaborative approach within the dyad. The collaborative approach adheres to organizational roles as partners where relational management is focused, and the market-oriented activities are characterized by participative decision-making and both formal and informal information sharing. Dyads where a closer interaction is not desired tend to rely on a coordinative approach where the formal arrangements (such as the contract) play a prominent enabling role in the management of market orientation. This aligns with the view of public providers as subcontractors and the public organization as a buyer with a dominating role in the market orientation of the dyad.

The thesis shows that, in comparison to private providers, public organizations perceive the relationship to be characterized by a higher level of conflict, more conflicting goals, and a lower degree of trust and commitment. It is further suggested that such perceptions of relational dynamics stem from the view of unalignable public and private values such as profitability and social value. The difficulty in aligning values and bridging the raison d’être explains why the public organizations’ tendency to refrain from sharing control and responsibility largely persists despite an increase in collaborative efforts. 

Abstract [en]

This thesis contributes to an increased understanding of how public–private dyads enact (“what”), enable (“how”), and embrace (“why”) market orientation. Drawing on a multi-year study of Swedish public transport, the thesis shows that the nature of the relationship between the public and the private organization plays an important role in how market orientation is undertaken in dyadic practice.

The findings show that the enactment of market orientation has shifted towards an increase of service providers’ involvement in market-oriented activities, and that the dyadic actors are more frequently involved in disseminating activities such as meetings and informal contact. Such a development also entails a more collaborative approach within the dyad. Still, formal arrangements (such as the contract) play a prominent enabling role in the management of market orientation.

It is suggested that the organizations’ emphasized values and perception of the dyad’s raison d’être give rise to an approach to market orientation of the dyad that is primarily characterized by either collaboration or coordination, but that the two forms also intermingle, often in complex ways.

Place, publisher, year, edition, pages
Karlstad: Karlstads universitet, 2021. , p. 103
Series
Karlstad University Studies, ISSN 1403-8099 ; 2021:12
Keywords [en]
market orientation, public service, public-private relationships, public procurement, public transport, collaboration, coordination
National Category
Business Administration
Research subject
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-83580ISBN: 978-91-7867-197-7 (print)ISBN: 978-91-7867-207-3 (electronic)OAI: oai:DiVA.org:kau-83580DiVA, id: diva2:1541845
Public defence
2021-05-12, Erlandersalen, 11D 227; Zoom, Universitetsgatan 2, 651 88, Karlstad, 10:00 (Swedish)
Opponent
Supervisors
Available from: 2021-04-21 Created: 2021-04-05 Last updated: 2021-04-21Bibliographically approved
List of papers
1. Market Orientation in Public Transport Research: A Review
Open this publication in new window or tab >>Market Orientation in Public Transport Research: A Review
2012 (English)In: Transport reviews, ISSN 0144-1647, E-ISSN 1464-5327, Vol. 32, no 2, p. 155-180Article in journal (Refereed) Published
National Category
Psychology Transport Systems and Logistics
Research subject
Psychology
Identifiers
urn:nbn:se:kau:diva-12369 (URN)10.1080/01441647.2011.633248 (DOI)000302564500002 ()
Available from: 2012-03-19 Created: 2012-03-19 Last updated: 2021-04-05Bibliographically approved
2. Market Orientation in Public Service: A comparison between buyers and providers
Open this publication in new window or tab >>Market Orientation in Public Service: A comparison between buyers and providers
2018 (English)In: Journal of Nonprofit & Public Sector Marketing, ISSN 1049-5142, E-ISSN 1540-6997, Vol. 30, no 1, p. 1-21Article in journal (Refereed) Published
Abstract [en]

Public services have been subjected to processes of deregulation, competition, and privatization in many countries worldwide. One popular reform has involved focusing on competitive procurement. This context, where public and private organizations jointly deliver the service in a dyad, makes the market orientation of public services highly complex. The main elements of market orientation – intelligence generation, intelligence dissemination and responsiveness– have shown themselves to be valid and of significance in both the private and public sectors. Nevertheless, the empirical context of the public sector involves a complexity that has been poorly addressed in market orientation research. In this study, we research the Swedish public transport industry and survey buyer and provider organizations in order to determine how market-orientated activities are approached in public-private service dyads. We present three theoretically-underpinned relationship types - buyer dominated, provider dominated and collaborative - which we suggest as having implications for market-oriented activities. A survey of public transport authorities’ (buyers, n = 48) and operators’ (providers, n = 49) market orientation activities reveals the concurrent prevalence of characteristics from all three relationship types, as both parties try to dominate the relationship while also engaging in collaborative efforts. Drawing on our theoretical framework and our empirical results, we conclude that there are legitimate differences in the perspectives of buyers and providers, and that these differences, if acknowledged and properly managed, can provide valuable resources in the development of a joint market orientation in complex public-private settings.

Place, publisher, year, edition, pages
Taylor & Francis, 2018
National Category
Economics and Business
Research subject
Business Administration; Psychology
Identifiers
urn:nbn:se:kau:diva-63674 (URN)10.1080/10495142.2017.1326342 (DOI)000425427900004 ()
Available from: 2017-09-14 Created: 2017-09-14 Last updated: 2021-04-05Bibliographically approved
3. Changing roles and new perspectives: towards market orientation in public transport
Open this publication in new window or tab >>Changing roles and new perspectives: towards market orientation in public transport
2018 (English)In: Transportation, ISSN 0049-4488, E-ISSN 1572-9435, Vol. 45, no 6, p. 1811-1825Article in journal (Refereed) Published
Abstract [en]

The general international trend of increasingly subjecting the public transport industry to market principles has been concretized via various developments in many countries. In line with this trend, there is an increased interest in public procurement processes as a model for public service delivery. Sweden is one of the leading countries where public procurement is the prevailing model for delivering public services. In accordance with the general trend, efforts have been made to make Sweden's public transport more sensitive to passenger needs, and to stimulate a competitive public transport system. For instance, a new Act, which came into effect on 1 January 2012, is aimed at fostering a customer-centric public transport system, with increased role clarity for the public transport actors. Since market-oriented strategies and public procurement processes are both receiving increased interest from the public transport industry, the market orientation of both public authorities and service providers in Sweden's public transport has been studied. Since market orientation is a process of change, a longitudinal approach was whereby the first study was conducted in the spring of 2011 and the second in the spring of 2014. All of Sweden's public transport authorities and the service providers that they stated as their major contract holders were asked to participate. In total, 184 respondents participated in the studies. The findings show that the industry as a whole has increased its organizational and inter-organizational efforts to both acquire knowledge of and respond to passenger needs. In particular, the public service providers have increased their involvement in market-oriented activities.

Place, publisher, year, edition, pages
New York: Springer, 2018
Keywords
Public transport, Market orientation, Public procurement
National Category
Business Administration
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-70567 (URN)10.1007/s11116-017-9781-3 (DOI)000452336700012 ()
Available from: 2018-12-20 Created: 2018-12-20 Last updated: 2021-04-05Bibliographically approved
4. Market-oriented activities, relational dynamics, roles, and values: Collaboration and coordination in public service dyads
Open this publication in new window or tab >>Market-oriented activities, relational dynamics, roles, and values: Collaboration and coordination in public service dyads
(English)Manuscript (preprint) (Other academic)
National Category
Business Administration
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-83574 (URN)
Available from: 2021-04-01 Created: 2021-04-01 Last updated: 2021-04-05Bibliographically approved

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