The Impact of Firm’s Market Orientation on the Attitude of
Internship Participator
Li-Min Chuang, Associate Professor, Chang Jung Christian University, Taiwan
Chun-Chu Liu, Professor, Chang Jung Christian University, Taiwan
Hsiao-Kuang Kao, Corresponding Author, Ph.D. student of Chang Jung Christian University/
Lecturer of Chia Nan University of Pharmacy & Science, Taiwan
ABSTRACT
The purpose of internship is to provide youth with more experiences for the real world’s career in
the future. Additional, the dynamic turbulent environment of human resource is a big challenge for firms
to deal with. Finding the human resource to face the fast changing market is a fundamental capability for
firms to develop. This research aimed to verify the moderating effect of the firm’s market orientation on
the internship participator’s attitude by adapting the theory of TAM. We conducted 300 surveys from
students who participate to the internship s of hotel and restaurant management department of university,
and 225 effective samples were collected. Analyses showed that:
(1) Perceived usefulness of firm’s market orientation has a positive effect on the attitude of choosing the
firm to implement the internship.
(2) Perceived ease of use of firm’s market orientation has a positive effect on the attitude of choosing the
firm to implement the internship.
(3) Market orientation has a significant moderate influence on the effect of perceived usefulness to the
internship participator’s attitude.
(4) Market orientation has a significant moderate influence on the effect of perceived ease of use to the
internship participator’s attitude.
Keywords: Internship, Market orientation, Technology Acceptance Model.
INTRODUCTION
To gain positive development into real world, it is important to understand teenagers' active
experiences of interaction in real world systems and how these experiences succeed (or fail) in
accommodating youth to these systems (Larson, 2000; Lerner & Busch-Rossnagel, 1981; Lerner, Theokas
& Jelicic, 2005). The internship s are the culminating academic exercise for students of hospitality
department, as well as students from a variety of disciplines in four-year academic s at the University. It
includes direct human service, front line servicers in vocational arenas, such as service quality, marketing,
mental health and social services. Although it is stressful and challenging during this experiential learning
process, students are expected to apply theory to practice successfully in a period. Furthermore, McClam
(2000) has consistently found that students have identified the internship as one of the most influential
components of their academic preparation.
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LITERATURE REVIEW
Internship s
The definition of internship is the relationship of cooperative between schools and firms. There are
several benefits of the internship s. First of all, internship s would result in better adaptation for students
in the real world (Inkstor & Ross, 1998). Secondly, through the internship s, students can gain deeper
personal insight and a greater appreciation of organizational dynamics (Inkstnr & Ross, 1998). Thirdly,
students can grow self-understanding by using and awarding of the progression of internship s (Sweitzor
& Jones, 1990). Fourthly, through the internship s, students can be benefited by conceptualizing their
experiences from the process of learning how to understand their own experiences (Swoitzer & King,
1994).
Kiser (2000) also denoted the need for internship by stating, “Students often need to learn how to
learn most effectively from experience”. Researchers have been identified several critical elements within
the internship s, such as (1) student and supervisor perspectives on supervision (McClam & Szczepanik,
1989), (2) exemplary supervisor qualities (McClam & Puckett, 1991), (3) and conducting field
experiences in real world (King & Tower. 1993).
Market Orientation.
The definition of market orientation has accepted as “the organization-wide generation of market
intelligence pertaining to current and future customer needs, dissemination of the intelligence across
departments, and organization wide responsiveness to it” (Kohli & Jaworski, 1990). Day (1994) stated
that the market orientation as ongoing behavior and processes such as market sensing and customer
linking (Jaworski, 1996).
In recent years, market orientation has been recognized being at the very heart and core part of
marketing and strategy (Narver & Slater, 1990). Kohli and Jaworski (1990) pointed out in their study that
in general, the market orientation is related to business performance. Narve and Slater (1990) also share
the same point of view asserting that market orientation has positive effects on business performance.
Technology Acceptance Model (TAM)
Davis (1986) proposed Technology Acceptance Model (Figure 1), and used this model to discuss
the effect of external variables on personal internal beliefs and attitudes.
Figure 1: Technology Acceptance Model (TAM)
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The concepts of TAM:
1. Attitude: the positive or negative feelings or evaluations generated when an individual uses new
technologies. It is determined by both perceived usefulness and perceived ease of use.
(1) The perceived usefulness is “the degree to which a person believes that using a particular system
will enhance his or her job performance”.
(2) The perceived ease of use is “the degree to which a person believes that using a new technology is
free from effort”.
2. Behavioral intentions: the degree of a person’s willingness to use a new technology.
3. External variables: The factors indirectly affect behaviors, such as the personal variables of users,
system characteristics, and environmental variables.
Many scholars have focused on factors that affect the use of new technologies, including relative
advantage, ease of use, compatibility, trial ability, visibility, result demonstrability, image, and
voluntariness (Moore & Benbasat. 1991; Svendsen, Johnsen, Sørensen, & Vittersø. 2013). The perceived
usefulness and perceived ease of use would affect the behavior of using new technologies, and would be
affected by the external variables included individual characteristics, system characteristics, and
organizational support (Igbaria, Guimaraes, & Davis, 1995).
The Effect of Perceived Usefulness and Perceived Ease of Use on the Internship Participator’s Attitude
“Attitude” is determined by both perceived usefulness and perceived ease of use. Davis (1986, 1989)
considered that in order to promote a user’s willingness to use a new technology, it is necessary to let
potential users believe that the new technology is easy to use and that they can benefit from using it.
“Perceived usefulness” referred to that the potential users considered the new technology is useful on job
performance and they can get benefit in the future (Venkatesh & Davis, 2000). “Perceived ease of use”
referred to the degree of the potential users considered the new technology is easy to use (Venkatesh &
Davis, 2000).
Therefore, in this paper, the “usefulness” and “ease of use” of firm with market orientation both
have positive effects on “attitude”. Users believe that the benefits provided by firm with market
orientation are useful (e.g., they can learn more from the internship in the firm) and are easy to use (e.g.,
they can get better development form the firm), which is helpful for increasing the internship
participator’s attitude toward choosing the firm with market orientation.
Research Hypotheses
In this study, TAM is used as the foundation, and referenced relevant literature to construct a holistic
conceptual framework. Figure 2 depicts the hypothesized relations examined in this investigation.
Figure 2: Research framework
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According to the literature review, we develop below hypotheses:
H1: Market orientation will positively influence the perceived usefulness of the internship participator’s
cognition.
H2: Market orientation will positively influence the perceived ease of use of the internship participator’s
cognition.
H3: Perceived usefulness of the firm’s market orientation will positively influence the internship
participator’s attitude toward choosing the firm to implement the internship.
H4: Perceived ease of use of the firm’s market orientation will positively influence the internship
participator’s attitude toward choosing the firm to implement the internship.
METHODOLOGY
Data Collection
This study distributed 80 copies of the pretest questionnaire and used the data of the pretest
questionnaire to perform reliability analysis. The values of Cronbach α coefficient of the 5 dimensions
were all larger than the standard value of 0.7. Therefore, this study used the pretest questionnaire as the
formal questionnaire. Focus on the senior students who already completed the internship from the hotel
and restaurant management department of the university, this study distributed 300 copies of
questionnaire and 250 valid copies were collected, the percentage of valid questionnaires was 75%.
Measures
The questionnaire included sections comprising questions about firm’s market orientation, attitude,
perceived usefulness, perceived ease of use, and finally demographic characteristics. The 5-point Likert
scale was used, ranging from 1= strongly unimportant to 5=strongly important.
1. Market Orientation: The operational definition of market orientation is “a corporate culture,
characterizes an organization's disposition to deliver superior value to its customers continuously”
(Namwoon & Srivastava, 1998). The factor analysis on the samples resulted in the number of items
has been reduced from 12 to 4.
2. Perceived usefulness : The attributes of perceived usefulness was selected from the developed scale
by Davis (1989). The factor analysis on the samples resulted in the number of items has been reduced
from 6 to 3.
3. Perceived ease of use: The attributes of perceived ease of use was also selected from a developed
scale by Davis (1989). The factor analysis on the samples resulted in the number of items has been
reduced from 6 to 3.
4. Attitude: The attributes of perceived ease of use was selected from a developed scale by (Ajzen, 2002;
Halilovic & Cicic, 2011). The factor analysis on the samples resulted in the number of items has been
reduced from 5 to 3
Procedures
The proposed model were tested with a LISREL (version 8.51) procedure of structural equation
modeling (SEM), and the maximum likelihood method of estimation and the two-stage testing process
were adopted. Prior to LISREL analysis, the multi-item constructs were tested by exploratory factor
analyzing (EFA) each set of scale items using the principal axis with varimax method provided in SPSS
(version 12.0).
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43
Factor analysis is the statistical method to verify the validity of the observed factors and reduce the
factors which are not suitable in the construct (Thurstone, 1931). The purpose of using factor analysis is to
(1) to reduce the number of variables and (2) to detect structure in the correlations between variables and
classify variables. Therefore, factor analysis is defined as a data reduction or structure detection method.
A number of additional goodness of fit measures is used to assess model fit. These include
root-mean-square error of approximation (RMSEA), incremental fit index (IFI), comparative fit index (CFI),
normed fit index (NFI), and relative fix index (RFI) (Jöreskog & Sörbom 1996). Acceptable model fits are
indicated by GFI and CFI values exceeding .90 and RMSEA values below .08 (Browne & Cudeck 1993).
RESULT
The sample demographics of this study were illustrated in Table1. The multi-item constructs in
Table 2 were tested by exploratory factor analyzing (EFA) each set of scale items using the principal axis
with varimax method provided in SPSS. The measure scale composite reliabilities (Cronbach’s alpha)
ranged from 0.86 (Market orientation) to 0.73 (Attitude toward choosing). Cortina (1993) has indicated
that scales possessing a reduced number of items, 0.60 and above may be acceptable.
Table 1: Sample Demographics
Characteristic
Sex (%)
Male
Female
N=250
32
68
Table 2: Factor analysis results of all measurement items
Factors Mean S.D. Factor loading α
Item label -Item description
Market orientation (MO)
0.86
In our company, our competitive advantage is based on
4.45 1.30
0.85
understanding customers’ needs (MO3)
In our company, our business objectives are driven by customer
Mean=4.60
4.31 1.28
0.82
satisfaction(MO6)
S.D.=1.16
4.33 1.20
0.77
Our company responds rapidly to competitive actions (MO9)
0.71
In our company, the Information is shared among functions (MO12)
Perceived usefulness (PU)
0.85
I think choosing a firm with market orientation to implement the
4.45 1.30
0.87
internship can make my job more efficient (PU2)
I think choosing a firm with market orientation to implement the
Mean=4.60
4.31 1.28
0.81
internship will not be limited by time and location restriction, which
S.D.=1.16
is helpful for me (PU3)
I think I can rapidly obtain information in the firm with market
4.33 1.20
0.75
orientation(PU5)
Perceived ease of use (PEU)
0.81
I think it is easy to implement the internship in the firm with market
4.59 1.22
0.84
orientation (PEU1)
Mean=4.40
I think it is easy to complete the internship in the firm with market
4.68 1.16
0.81
S.D.=1.22
orientation (PEU3)
I think it is easy to learn more job experience in the firm with
4.36 1.20
0.78
market orientation without spend too much time (PEU4)
Attitude toward choosing(A)
0.73
I believe the transaction process and results of the firm with market
0.72
Mean=4.59 4.83 1.13
orientation are correct(A3)
S.D.=1.18
4.04 1.10
0.68
I like to work in the firm with market orientation (A4)
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Measurement Models: Confirmatory Factor Analysis
Measurement models for all the constructs to be used for the subsequent structural equation
modeling were created, and goodness of fit of these models was tested using confirmatory factor analysis
(CFA).
The measured indicator variables depicted with squared boxes in Figure 3 represent respondents’
mean scores of the items, along with their raw scores of the questionnaire items for brand and service
trust, perceived usefulness, perceived ease of use, attitude and behavioral intention.
Figure 3: Measurement Models tested using Confirmatory Factor Analysis (CFA)
Analysis of Overall Model Fit
Table 3 showed indices test results of the CFA measurement model. All the test indicators of this
type met the testing standards, e.g., χ²/df was 1.92 and less than 3, and the RMSEA was 0.06 and less than
0.08. In addition, the GFI (goodness-of-fit index) was 0.82, which was close to the testing standard of
greater than 0.09. The RMR (root mean squared residual) value was 0.08, which was slightly higher than
the testing standard of 0.05. On the other hand, all the test indicators of this type met or were close to the
testing standard value of greater than 0.09; for example, the NFI (normed fit index) was 0.84, the CFI
(comparative fit index)was 0.91, the IFI (incremental fit index)value was 0.91, and the RFI (relative fit
index) value was 0.82. Therefore, the overall model fit tests attained the testing standard, which had an
excellent fit.
Model
Measurement
χ²/df
<3
1.92
P-value
<0.05
0.000
Table 3: Model fit-indices
Criteria
RMSEA
GFI
RMR
< 0.08
> 0.09 > 0.05
0.06
0.82
0.08
NFI
>0.09
0.84
CFI
>00.9
0.95
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IFI
> 0.09
0.94
RFI
> 0.09
0.82
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Hypothesis Testing of Each Variable Path
The conclusions of the hypothesis testing performed in this study were showed in Table 4.
Hypothesis
H1
H2
H3
H4
Table 4: Hypothesis Relationship Path Test Result
Path
P-value
C.R./t
Market orientation → perceived usefulness
0.45
3.18**
Market orientation → perceived ease of use
0.95
5.58***
Perceived usefulness → attitude toward choosing
0.29
2.29***
the firm to implement the internship
Perceived ease of use → attitude toward choosing
0.91
9.26***
the firm to implement the internship
E/N
Supported
Supported
Supported
Supported
*: P<0.05、**：P<0.01、***：P<0.001)
Market orientation has a significant positive effect on the perceived usefulness of the internship
participator’s cognition. The path coefficient of market orientation on the perceived usefulness was 0.45
and the t value was 3.18, which was greater than the standard value of 1.96 and attained the significant
level; therefore, Hypothesis 1 is valid. This result means that if the firm with market orientation is known
by the internship participator, then their degree of perceiving usefulness to implement the internship in the
firm will be more positive.
Market orientation has a significant positive effect on the perceived ease of use of the internship
participator’s cognition. The path coefficient of perceived usefulness on the perceived ease of use was
0.95, and the t value was 5.58, which was greater than the standard value of 1.96 and attained the
significant level; therefore, Hypothesis 2 is valid. This result means that if the firm with market
orientation is known by internship participator, then their degree of perceiving ease of use to implement
the internship in the firm will be more positive.
The path coefficient of perceived ease of use on attitude toward choosing the firm with market
orientation to implement the internship was 0.29, and the t value was 2.29, which was less than the
standard value of 1.96 and attained the significant level; therefore, Hypothesis 3 is valid. This result
means that if the internship participator perceived usefulness of choosing the firm with market orientation,
then their attitude will be affected.
The result of hypothesis 4 is valid, which means that if the internship participator perceived the firm’s
market orientation is easy for them to learn the working experience, then their attitude will be affected.
CONCLUSION
Research result
1. If the internship participator satisfied with the work that provided by firm with market orientation, and
the transaction processes and results are correct, or the transaction system is safe and secure, then the
internship participator will have high levels of satisfaction in the firm.
2. If the firm with market orientation can enable the internship participator to efficiently, confidently,
and quickly obtain relevant information on enterprises or perform transactions in real-time and free of
time and location restrictions, then the internship participator’s positive attitude toward choosing the
firm to implement the internship will increase.
3. The degree of positive and negative evaluation of internship participator is the most important factor
that affects whether the internship participator will choice the firm with market orientation to
implement the internship.
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Research implications and Limitation
Based on the results of this study, the major findings have significant managerial implication. This
finding reveals the importance of understanding the internship participator’s behavioral intention toward
choosing the firm to implement the internship. When evaluating the internship participator’s acceptance
of firm’s market orientation, they may think of positive experiential aspects, such as social psychological
interaction within their clients or the working experience during the internship period, or the process
convenience of the internship, and conflict-related attributes included in this study with the quality of the
firm’s market orientation.
The purpose of the internship is aim to reduce the gap between theory and practice, and therefore
the content of the internship should link with the target of school’s curriculum. In addition, signing the
internship contract with the firms, express the rights and obligations for each side during the internship
period; make sure the internship participator can be handled with labor insurance or accident insurance, to
increase the security during the internship period.
Future research is suggested to enter other possible factors which may be significantly associated
with firm market orientation. Also for this study we simplified adaptability using some of the dominations
of TAM as a narrow focus only. Further research could be conducted with other theories whether the
variable factors of adaptability are increased including such factors as wide market focus, scope of
technology or managerial systems and discuss how they impact the internship participator’s cognition.
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