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Marketing the museum brand: illusion or way to go?

A quantitative study on the effects of various museum

orientations on museum performance

Name: Tessa Rosemarijn Griffioen Student number: 10074430

Final version Master Thesis / 14-02-2017 Program: MSc Business Administration

Track: Entrepreneurship and Management in the Creative Industries Institution: University of Amsterdam

Supervisor: Balázs Szatmári Second Reader: Erik Dierksen

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Statement of Originality ________________________________________________

This document is written by Student Tessa Griffioen who declares to take full responsibility

for the contents of this document.

I declare that the text and the work presented in this document is original and that no other

sources than those mentioned in the text and its references have been used in creating it.

The Faculty of Economic and Business is responsibly solely for the supervision of completion

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Abstract _____________________________________________________________

Marketing academics and practitioners have been arguing for the positive effects of market

orientation and brand orientation on organizational performance for decades. Recent studies

show that organizations, in practice, adopt approaches in which the two strategic options

blend together into a hybrid orientation. However, quantitative research of this market-brand

hybridity to date remains scarce. The purpose of this study was to test the effects of these

approaches – pure market, pure brand, and hybrid orientation – in a museum context, within

which especially hybrid approaches were expected to be beneficial. Moreover, according to

Hofstede’s masculinity dimension, a cross-cultural comparison was made. The sample

included 139 museum directors or managers from the Netherlands, the United States,

Hungary, Austria, and Slovenia. To test the effects of the three types of orientation on

economic and social museum performance, the study made use of two hierarchical multiple

regression analyses. Furthermore, a MANOVA was conducted to test whether the

effectiveness of hybrid orientation differed for a country’s level of masculinity. Contrasting

previous work, the results showed almost no effect of museum orientation on both types of

performance. The only significant effect found was that of brand orientation on social

performance and was negatively rather than positively directed. Moreover, when running the

analyses including only Dutch museums, all three strategic options revealed to negatively

influence performance. These findings added a critical note to the general presumption of the

positive effects of market and brand orientation and provided academics with a stepping stone

for the further exploration of national, cultural, and industrial differences in the practice of

marketing and branding by museums.

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1 Introduction ... 6

2 Theoretical framework ... 10

2.1 Market orientation ... 10

2.2 Brand orientation ... 12

2.3 A hybrid approach to market and brand orientation ... 14

2.4 Museum performance ... 16

2.4.1 Market orientation and museum performance ... 17

2.4.2 Brand orientation and museum performance... 18

2.4.3 Hybrid orientation and museum performance ... 19

2.5 National culture ... 21 2.5 Conceptual models ... 24 3 Method ... 25 3.1 Research design ... 25 3.2 Data collection ... 27 3.3 Measures ... 28 3.3.1 Predictior variables ... 29 3.3.2 Outcome variables ... 30 3.3.3 Moderator variables ... 31 3.3.4 Control variables ... 31 3.4 Statistical procedure ... 33 4 Results ... 35

4.1 Analysis of the sample ... 35

4.2 Pre-analyzing the data ... 37

4.2.1 Regression analysis ... 37

4.2.2 MANOVA ... 39

4.2.3 Missing data ... 39

4.2.4 Correlation matrix ... 40

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4.4 Exploratory data analysis ... 49

5 Discussion and conclusion ... 51

5.1 General discussion ... 51

5.1 Theoretical and practical implications ... 56

5.3 Limitations and future research ... 58

5.4 Conclusion ... 62

6 Reference list ... 64

7 Appendix ... 74

I. Survey ... 74

II. Cover letter ... 79

III. Countries’ ranking on Hofstede’s cultural dimensions ... 80

IV. Normality plots ... 81

V. Homoscedasticity plots ... 82

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1 Introduction

Museums are operating in an increasingly dynamic environment, having to deal with two of

today’s significant trends. Firstly, due to globalization and digitization, the interconnectedness

of museums is rising and exchanging information becomes easier and quicker for both

museums and visitors (Spooner, 2015). As a result, museums now face the challenge to

compete within a broad, interconnected competitive environment without losing their

distinctiveness and credibility (Li & Chen, 2014). This globalization has also led tourism to

expand, with cultural tourism as one of the industry’s most dynamically developing branches

(Csapó, 2012). Museums therefore increasingly need to find ways to appeal to visitors from

very different backgrounds (Li & Chen, 2014).

A second trend targeting museums appears from recent reports showing that the public

funding for arts is decreasing (McQuilten, White, Neville & Dembek, 2015), and for

museums in particular (Museum Association, 2015). These trends have caused museums to

shift away their focus from the collection to the visitor, leaving museum managers with the

struggle to combine the museum’s objective to collect, conserve, research, exhibit and educate

with the higher aim to compete for visitors (Kotler & Kotler, 2000). To keep up with

competing museums and alternative providers of leisure and educational activities, museum

directors need to be open to alternative strategies and management techniques imported from

the commercial sector (Gilmore & Rentschler, 2002).

One of these commercial strategies and techniques involves the practice of marketing.

According to Kaplan and Haenlein (2009), the last decades have seen a shift in the general

conception of marketing favoring its practice by publicly hold entities. Whereas the American

Marketing Association in 1985 described marketing as a process leading to the creation of

exchanges that satisfy individual and organizational needs, its definition in 2004 built much

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benefit for organization and stakeholders (Kaplan & Haenlein, 2009). Kaplan and Haenlein

(2009) further state that the belief that marketing goes beyond the transaction is finding more

and more support. This advanced way of practicing marketing also leads to a closer fit with

the broader nonprofit sector, enabling NPOs and social enterprises to effectively adopt

marketing principles into their organizations (Brennan & Brady, 1999).

Moreover, also museums themselves have been changing. Whereas museums

traditionally have been defined by their function rather than their purpose, recent definitions

include the importance of people, society and contextual pressures in explaining the purpose

of museums (Rentschler, 2004). Rentschler (2004) further states that this shift in definition

reflects the development of museums from inwardly focused to outwardly focused, dispersing

resources to the community, audiences, and the wider public.

These fundamental changes in museum administration and the practice of marketing

on the one hand and the need for noncommercial enterprises to incorporate practices from the

commercial sector on the other leads to an increased interest in museum marketing (Gilmore

& Rentschler, 2002), something which Rentschler (1998, p. 83) referred to as a “climate of

change”. With her statement “museum marketing: no longer a dirty word”, she opens her

advocacy for the need for museums to adopt marketing activities into their daily management.

Cole (2008) adds to this by concluding that marketing can be used by museum practitioners to

build and maintain strong relationships with their existing visitors, to target wider audiences

and raise visitor numbers, to differentiate their museum profiles from competitors, and to

enhance their missions and plans for increased competitiveness. Although comprehensive

research is done to the effects of various marketing trends on e.g. performance (Gainer &

Padanyi, 2002; Kara, Spillan & DeShields Jr, 2004; Palmatier, Dant, Grewal & Evans, 2006;

Sin, Tse, Yau, Lee & Chow, 2002), customer loyalty (Palmatier et al., 2006), customer

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nonprofit context, museum specific empirical research is scarce. However, the need to appeal

to a highly diverse target audience and to satisfy the needs of this audience – varying from

educative and societal to cultural purposes (Kotler, Kotler & Kotler, 2008) – makes museum

marketing a particular, and therefore important, field of research.

This study examines the effects of two important, seemingly opposing, streams of

marketing research on museum performance, namely market orientation and brand

orientation. Although these two strategic orientations might seem incompatible in nature –

market orientation is often characterized by its outside-in, image driven approach, whereas

brand orientation is described as rather inside-out and identity driven – recent research argues

that organizations in practice often perform a hybrid orientation between the two (Urde,

Baumgarth and Merrilees, 2013). Although some museum related studies do explore the role

of market or brand orientation independently, this study argues why especially this hybrid

approach might be well-fitting the museum sector due to the individual characteristics of both

market and brand orientation combined with the trends targeting today’s museum specific

industry.

Furthermore, interest in the effect of national culture on marketing and advertising has

been rising over the last two decades, pointing at the necessity of adapting branding strategies

to the culture of the customer (de Mooij & Hofstede, 2010). This alignment of marketing

practices seems especially important within the museum industry for two reasons. Firstly, the

increase in cultural tourism as mentioned earlier leaves museums with the challenge to appeal

to a (culturally) diverse target audience. Secondly, the last decade has seen a trend of

well-known museums opening branches in another city or country, so-called satellite museums, of

which important examples are the Guggenheim-Bilbao and the Centre Pompidou-Metz.

Based on Hofstede’s (1984) cultural dimensions, a country's level of masculinity

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a museum’s performance. Previous work found mixed results regarding this moderating role

of masculinity in combination with a pure market or pure brand orientation. I suggest that, for

museums based in countries with extreme masculinity scores (extremely low or high) to

satisfy the needs of their audiences, hybrid approaches to market and brand orientation may

be especially beneficial compared to the moderate masculinity countries.

Overall, the following research question is raised: What is the effect of a hybrid

brand-market orientation on museum performance? Furthermore, the study aims to answer three sub-questions: (1) What is the effect of market orientation on museum performance? (2) What

is the effect of brand orientation on museum performance? (3) What is the influence of the

cultural dimension masculinity on these effects? Firstly, I give a theoretical overview of the

main concepts in the study and what is already known within this field of research. After

having raised the study’s research question and its hypotheses, I turn to a description of the

methodology in which I elucidate the research design and methodological choices that have

been made. In the fourth chapter, the statistical analyses with which the hypotheses are being

tested are conducted and reported. Finally, a discussion and interpretation of the results is

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2 Theoretical framework

Within this chapter, the concepts central to this study, market orientation and brand

orientation, are defined. After having elaborated on what is already written on the two types

of orientation, I explain why there is assumption for the existence of a hybrid type of

orientation. Furthermore, I specify why especially the museum industry is an appropriate

context for researching such a hybrid approach between market and brand orientation.

Subsequently, propositions are made determining the direction of the expected effects of the

different types of orientation. Finally, the role of national culture is involved as a potential

determinant of the effectiveness of a hybrid orientation between market and brand orientation.

2.1 Market orientation

To understand the origin of market orientation and brand orientation and the conceptual

difference between the two, one should first start understanding the roots of the broader

concept marketing. McNamara (1972, p. 51) states that marketing is “a philosophy of

business management, based upon a company-wide acceptance of the need for customer

orientation, profit orientation, and recognition of the important role of marketing in

communicating the needs of the market to all major corporate departments.” According to

Kotler (1980), the marketing concept holds that organizational goals are to be achieved by

determining the needs and wants of target markets. Moreover, it has been an expression of the

marketer’s recognition of the consumer’s importance in the buying process (Houston, 1986).

However, the strategic nature of the marketing concept itself lacks practicability (Kohli &

Jaworski, 1990; McCarthy & Perreault, 1984). To be able to operationalize marketing and

implement its practices, market orientation emerged: the ability to align organizational actions

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Market orientation has been studied extensively over the past few decades (e.g. Becker

& Homburg, 1999; Jaworski & Kohli, 1993; Kohli, Jaworski & Kumar, 1993; Narver &

Slater, 1990; Slater & Narver, 1994). Two main streams of research seem to dominate the

existing literature on (nonprofit) market orientation, taking a cultural (e.g. Narver & Slater,

1990) or behavioral (e.g. Kohli & Jaworski, 1990) perspective on market orientation. Firstly,

Narver and Slater (1990) – from a cultural perspective – identified customer orientation,

competitor orientation and inter-functional orientation as the sub-constructs determining an

organization’s level of market orientation. Whereas customer orientation and competitor

orientation involve all the means of acquiring information about the organization’s buyers and

competitors and spreading it throughout the organization, inter-functional orientation is based

on creating superior value according to the customer and competitor information acquired

(Narver & Slater, 1990).

Kohli et al. (1993), who advocate for the behavioral area of market orientation, rather

subdivide the concept into intelligence generation, intelligence dissemination and

responsiveness as the adequate dimensions of market orientation. Within their

operationalization, market intelligence refers to collecting and assessing customer needs and

preferences and the forces influencing those, intelligence dissemination to the process and

extent of the exchange of information within the given organization, and responsiveness is the

action taken as response to the former two (Kohli et al., 1993).

However, despite the differences in defining and operationalizing market orientation,

these streams of research on market orientation also show considerable overlap in various

conceptual and operative aspects (Cadogan and Diamantopoulos, 1995). According to Reid et

al. (2005), four aspects embedded in the literature on market orientation are customer

orientation, competitor orientation, inter-functional coordination and a profit emphasis.

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level of an organization’s performance plays an important role in the different streams of

research (Day, 1994; Jaworski & Kohli, 1993; Narver & Slater, 1990). Furthermore, Matsuno,

Mentzer and Rentz (2005) even go so far as to say that the Narver Slater operationalization of

market orientation actually revolves around the behavioral aspects of culture to a great extent,

automatically raising questions concerning the cultural construct’s distinctiveness from its

behavioral counterpart.

In its core, being market oriented means having a primary focus on the satisfaction of

customer needs and wants, thereby creating sustainable superior value (Day, 1994; Kohli &

Jaworski, 1990; Narver & Slater, 1990; Urde et al., 2013). Market oriented organizations

track and respond to the continuously changing marketplace, therewith consistently meeting

changing customer demands (Jaworski & Kohli, 1993). Consequently, being market oriented

leads to positive business performance (e.g. Jaworski & Kohli, 1993; Kirca, Jayachandran &

Bearden, 2005; Matsuno et al., 2005; Narver & Slater, 1990). More specifically, market

orientation is proven to, among others, positively influence organizational profitability

(Narver & Slater, 1990), organizational commitment (Jaworski & Kohli, 1993) and product

innovation (Lukas & Ferrell, 2000).

2.2 Brand orientation

Brand orientation, seemingly opposing market orientation, raised attention over the last 20

years, shifting the focus from the customer to the brand (e.g. Ewing & Napoli, 2005;

Baumgarth, 2009; Evans, Bridson & Rentschler, 2012; Baumgarth, Merrilees & Urde, 2013).

Whereas market orientation had always been emphasizing the creation of sustainable superior

value according to its (future) target buyers’ demands, now consistent brands were

acknowledged as the starting point to sustainable competitive advantage. A brand is here

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identify the goods and services of one seller or group of sellers and to differentiate them from

those of competition” (Keller, 2003, p. 3). Accordingly, Urde (1999, pp. 117-118), being one

of the first to challenge the paradigm of market orientation, defined brand orientation as “an

approach in which the processes of the organization revolve around the creation, development

and protection of brand identity in an ongoing interaction with target customers with the aim

of achieving lasting competitive advantages in the form of brands”.

The basic premise of brand orientation is that the essence of the brand oriented

company’s strategy is presented in its brand vision, thereby highlighting the strategic goals

directly related to the brand (Urde, 1994). Using the brand as a strategic platform, the ideal

outcome of a brand oriented organization is a constant, consistent and valuable brand offer

that is different from competing brands (Baumgarth, 2009) and with which strong customer

and stakeholder relationships are built and maintained (Bridson & Evans, 2004). Brand

missions should provide answers to the why, the what and the how of the brand-oriented

company: Why does it exist? What does the brand stand for? How is the goal of the brand to

be achieved? (Urde, 1999). And even: Who is the brand? (Urde, 1994; Simões & Dibb, 2001).

Accordingly, Simões and Dibb (2001) argue that a brand has come to express the company’s

core values and beliefs. They state that “it is the amniotic liquid washing the whole

corporation being demonstrated in every internal and external activity in which the company

is involved and in fact becomes the corporate brand” (Simões & Dibb, 2001, p. 223).

Although the relatively young concept is not being as extensively explored as its

counterpart market orientation, various studies to the antecedents and effects of brand

orientation show a positive relationship with organizational performance (Baumgarth, 2009;

Baumgarth, 2010; Napoli, 2006), profitability (Gromark & Melin, 2011) and other

organizational objectives such as raising awareness and building trust (Hankinson, 2000;

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brands, brand orientation is a precondition for high brand performance and achieving

sustainable competitive advantage (Hankinson, 2012; Wong & Merrilees, 2008). Moreover,

the effects are shown to hold within different contexts, for example the nonprofit (e.g.

Baumgarth, 2009; Hankinson, 2001; Napoli, 2006), business-to-business (Baumgarth, 2010)

and creative sector (Bridson & Evans, 2004).

2.3 A hybrid approach to market and brand orientation

However, ever since the upswing of brand orientation within the literature, the relationship

between brand orientation and market orientation has been unclear. Former research has

generally addressed the strategic options separately, treating them as two different or even

conflicting concepts (Laukkanen, Tuominen, Reijonen & Hirvonen, 2016). Urde et al. (2013)

differentiate between market orientation and brand orientation by arguing that the former is

usually described as an outside-in, image-driven approach of strategic management, while

brand organization is considered inside-out and identity-driven. Interaction with the customer

still plays a central role within the brand oriented organization, however, responses to

customer demands occur within the brand’s framework rather than being unconditional

responses to what is demanded by customers at any given time (Baumgarth et al., 2013).

Despite this general focus on the distinctiveness of market and brand orientation, there

has been at least some attention to the concepts’ complementarity. According to Urde (1999,

p. 118), brand orientation goes beyond market orientation by adding a degree of

sophistication: “to be brand oriented is market oriented plus”. His view is supported by Reid,

Luxton and Mavondo (2005), who argue that market orientation creates the conditions for

brand orientation. Moreover, they show that high levels of market orientation positively affect

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Recent investigation concluded that organizations in practice often perform a more

synergistic or hybrid approach to brand and market orientation (Laukkanen et al., 2016;

Merrilees & Baumgarth, 2016; Urde et al., 2013). According to Merrilees and Baumgarth

(2016), both market orientation and brand orientation may exist separately, but can evolve

further into a distinctive hybrid orientation. This is supported by Urde et al. (2013), who argue

for the need to adopt a more holistic view to be able to understand how the two concepts

relate and interact with each other. Studies that followed aimed at quantitatively exploring the

relationship between synergistic approaches to market and brand orientation and

organizational performance (Laukkanen et al., 2016; Merrilees & Baumgarth, 2016).

In their study, Merrilees and Baumgarth (2016) empirically test the effects of this

hybrid market-brand orientation within a business-to-business context. The conclusion of the

research reads as follows: (1) the hybrid oriented group performed considerably higher market

performance than the market oriented group, because of their greater ability to leverage

management capability into marketing performance, (2) both the hybrid oriented group and

the market oriented group outperformed the low oriented group, and (3) hybrid oriented and

market oriented firms did not differ markedly regarding customer creation, suggesting no

major role for either of the two types of orientation here.

Laukkanen et al. (2016), who explore the relationship between brand and market

orientations within small firms, test how the two concepts simultaneously affect brand

performance and financial performance. The outcomes contribute to the literature on hybridity

in a few ways. Firstly, supporting Urde (1994) and Reid et al. (2005), they find a sequential

relationship between market orientation and brand orientation, meaning that higher levels of

market orientation lead to higher levels of brand orientation. Laukkanen et al. (2016) further

state that this, in turn, leads to better brand performance. Secondly, rather than having a direct

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affect the financial performance of small firms indirectly via brand performance. Finally, they

find a moderating effect of company size, suggesting that this non-existence of a direct effect

on financial performance only holds for small, compared to large, companies.

However, there is a persistent lack of research of the interaction or hybrid approaches

between market orientation and brand orientation (Laukkanen et al., 2016; Merrilees &

Baumgarth, 2016). According to Merrilees and Baumgarth (2016, p. 870), there is such

deficiency of literature that “almost any relevant study will help shed light on the debate”.

Following the operationalization of hybrid orientation by Merrilees and Baumgarth (2016),

who argue for hybridity being measured as such that brand orientation moderates the effects

of market orientation, this study tests the effect of hybrid orientation in a museum context – a

field within no research to date has been done yet. In the following section, I elaborate on the

reasons why exploring hybrid approaches in a museum context might be particularly

interesting and even a necessary next step.

2.4 Museum performance

Since the objectives of research in this study are non-commercial entities, it should first be

explained what is meant when talking about performance. According to Paulus (2003), the

often nonprofit nature of museums increases the complexity of its performance measurement.

Although the literature shows divergent ways of measuring performance within a nonprofit

context, they do agree upon the need for measuring both financial and non-financial outputs

(e.g. Gainer & Padanyi, 2005; Moore, 2003; Mottner & Ford, 2005). This study follows the

operationalization of performance of Camarero and Garrido (2008a), who distinguish between

museums’ social and economic performance. Here, social performance for example refers to

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collection. Economic performance compromises outputs such as visitor numbers and job

creation (Camarero & Garrido, 2008a).

2.4.1 Market orientation and museum performance

To date, various research has been done to the impact of market orientation and brand

orientation on nonprofit performance. Balabanis, Stables and Phillips (1997) were the first to

empirically test the potential effects of market orientation for NPOs, showing a positive link

between market orientation and performance of charity organizations. Following research

confirmed this positive relationship, for example conducted within universities (Caruana,

Ramaseshan & Ewing, 1998), hospitals (Wood, Bhuian & Kiecker, 2000), nonprofit service

providers (Kara, Spillan & DeShields Jr, 2004) and museums (Camarero & Garrido, 2008a;

Camarero & Garrido, 2008b).

Investigating market orientation within a specific museum context, Camarero and

Garrido (2008a; 2008b) find empirical support for the positive relationship between market

orientation and museum performance. Using the Narver Slater classification of market

orientation, the authors found that market orientation significantly affects both the museum’s

social and economic performance. Additional research confirmed this positive link between

market orientation and museum performance (Camarero & Garrido, 2008b). In contrast to the

studies conducted by Camareo and Garrido (2008a; 2008b), this study follows the behavioral

conceptualization of market orientation. However, I expect the findings to hold for this

conceptualization of market orientation, leading to the following first hypotheses:

H1a: Market orientation has a positive effect on a museum’s social performance.

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2.4.2 Brand orientation and museum performance

As regards brand orientation, Hankinson (2000; 2001; 2002) greatly contributed to the

literature by shedding light on the concept’s implementation in the nonprofit sector, finding

several benefitting consequences such as increased voluntary income generation and staff

involvement. Ewing and Napoli (2005), who designed a brand orientation measurement scale

especially applicable to nonprofits, further state that brand oriented activities positively

contribute to nonprofit performance by enabling them to serve their different stakeholders

better and to achieve both long and short term objectives. Successive studies empirically

testing the effects of brand orientation in the nonprofit sector confirms the positive link with

performance (Napoli, 2006; Baumgarth, 2009; Gromark & Melin, 2011; Gromark & Melin,

2013).

However, consensus among the actual implementation of brand orientated practices

within the museum industry is lacking. In his study, Baumgarth (2009) only found a relatively

small percentage of museum managers reporting intensive brand management within the

investigated museums. Evans, Bridson & Rentschler (2012), on the other hand, showed that

numerous great institutions, and museums in particular, are brand-oriented to some degree,

making them easily identifiable as brands. They further state that this brand orientation is

particularly important because of the brand’s ability of serving as a bridge between a

museum’s curatorial and commercial aims (Evans et al. 2012). Gromark and Melin (2013)

also point at brand orientation as the most appropriate orientation for the public organizations

in particular, since it fulfills their communal reason of existence: the public organizations’

contribution to the common good (Gromark & Melin, 2013). Baumgarth (2009),

quantitatively exploring brand orientation within museums, found that brand orientation

positively affects both cultural and market performance. Cultural goals refer to the museum’s

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considerable similarity with social and economic performance, I propose the same effects

occurring for this operationalization of performance.

H2a: Brand orientation has a positive effect on a museum’s social performance.

H2b: Brand orientation has a positive effect on a museum’s economic performance.

2.4.3 Hybrid orientation and museum performance

What might be more interesting than measuring the effects of either market orientation or

brand orientation on museum performance is seeing whether a hybrid approach to market and

brand orientation within a museum context is superior to choosing between either of the two.

As regards museums, strategic orientations in which both brand and market aspects play a

considerable role seem especially relevant, taking into concern the characteristics of the

industry and the recent trends occurring within. The first trend mentioned earlier is the

globalization and digitization that increases the interconnectedness of museums locally,

nationally and globally, resulting in the need for museums to differentiate themselves within

this increasingly broad competitive environment. For museums to retain their distinctiveness,

adopting a brand orientation may be highly useful for building, maintaining and

communicating a unique brand that sets the museum apart from its competitors. However, as

regards to the museums’ target groups, globalization has led tourism to expand, challenging

museums with the need to appeal to visitors from very different backgrounds. Here, the

robustness of a pure brand orientation may lack knowledge of and responsiveness to the needs

and wants of this culturally diverse group of target visitors; aspects that are central to market

orientation.

The second trend targeting museums is the decreasing public funding for arts,

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Consequently, museum managers today are struggling to combine the museum’s objectives to

collect, conserve, research, exhibit and educate with the higher aim to compete for visitors

(Kotler & Kotler, 2000). To explain how hybrid approaches to brand and market orientation

can contribute to combining these objectives, I refer to an article written by Weinland and

Bennet (1984). Although the article is written 30 years ago, their reasoning still holds and

illustrates my point for a great part. The authors describe the museum’s conversation with its

visitors as either a monologue or dialogue. In the case of a monologue, the museum’s

objective is the sole transfer of knowledge from museum to visitor. When the museum’s

objectives go beyond knowledge, but rather seek to challenge its visitors to develop curiosity,

artistic value and other skills and values, one speaks of a dialogue. In this case, the museum

should encourage visitor questions and react effectively to them (Weinland & Bennet, 1984).

In their article, written in a time where marketing did not yet play a big part in society,

Weinland and Bennet (1984) do not elaborate on serving the visitor’s wants and needs to aim

for the achievement of competitive advantage explicitly. However, their point seems to

translate itself to a hybrid brand and market approach well. On the one hand, it is important

for museums to brand itself according to its educational and societal objectives, something

which originates from deep within the museum, determines its mission and vision, and

follows an identity driven, inside-out approach. On the other hand, as in the Weinland and

Bennet example, museums should interact with its target groups to effectively react to their

demands, especially in times when funds are decreasing. To keep up with these needs and

wants in today’s dynamic cultural sector, museums should adopt an outside-in, image-driven

approach to stimulate responsiveness to their changing environment.

Consequently, I propose that museums that are high on both market orientation and

brand orientation outperform museums that are low on both or either of the two orientations.

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moderating role in the relationship between market orientation and performance, as my main

focus is on the effect of hybrid orientations rather than the interaction between market and

brand orientation per se. The effect is expected to be found for both social performance and

economic performance. Social performance comprises items regarding customer satisfaction,

raising visitor interest, and increased understanding of the museum’s objects among the local

community. As elaborated upon earlier, hybrid orientations aim to challenge and stimulate its

visitors, leading to the expectation of a positive link between hybrid orientation and social

performance. As regards financial performance, items here comprise visitor numbers,

fulfilling economic objectives, and reputation and prestige. The ability of hybrid orientations

to position themselves effectively regardless a diverse pool of visitors, leads to the

expectation of higher financial benefits for hybrid oriented museums compared to their low or

pure oriented counterparts.

H3a: The relationship between market orientation and social performance is higher for those

museums also high on brand orientation.

H3b: The relationship between market orientation and economic performance is higher for

those museums also high on brand orientation.

2.5 National culture

The last objective of this study is to explore whether hybrid orientations between market and

brand orientation is more or less effective within different cultural contexts. Interest in the

effect of national culture on marketing and advertising has been rising over the last two

decades, pointing at the necessity of adapting branding strategies to the culture of the

customer (de Mooij & Hofstede, 2010). This statement seems at odds with the emphasis given

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remain significant shapers of consumer behavior. However, literature that explores the

relationship between national culture and market and brand orientation is scarce, and the

studies that do exist within the field mainly revolve around market orientation solely (e.g.

Ellis, 2006; Kirca et al., 2005; Nakata & Sivakumar, 2001).

One of the most important contributors in the field of national culture is Hofstede, who

defines culture as “the collective programming of the mind which distinguishes the members

of one category of people from another” (1994, p. 1). This category of people can, for

example, exist on a national, regional, or social level. Furthermore, Hofstede and colleagues

identified five dimensions on which cultures differ: power distance,

individualism-collectivism, uncertainty avoidance, masculinity-femininity and long versus short-term

orientation (Hofstede, 1984; Hofstede, Hofstede & Minkov, 1991). Furthermore, de Mooij

and Hofstede (2010) argue for the latter two to be mainly relevant in this marketing

perspective.

Whereas research done to the role of national culture in a branding context is scarce to

non-existent, some articles do suggest interaction effects between marketing and national

culture. As regards the masculinity dimension, Nakata and Sivakumar (2001) argue that

extreme high levels of both masculinity and femininity are positively linked to the generation,

dissemination, and utilization of market intelligence. Masculine countries value competition

and achievement, aspects that are closely related to the competitiveness of market orientation.

Feminist societies value openness, leading to greater distribution of market intelligence

throughout a market oriented entity. However, contradicting these suggestions, the article by

Kirca et al. (2005) did not find significant interaction effects between a country’s level of

masculinity and market orientation.

It is assumed here that these conflicting findings regarding masculinity-femininity are

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needs. Although feminine cultures seem to stimulate the generation, dissemination, and

utilization of market intelligence because of their focus on cooperation, pure market

orientation seems to be too strongly focused on short term wins and competition. Also is

femininity about relationship enhancement rather than ego enhancement (Hofstede, 1991),

something that encompasses more consistency than can be satisfied by the responsive nature

of market orientation. Masculine countries, on the other hand, are shown to score high on

self-consciousness (Hofstede, 1991), something that naturally aligns with the identity approach of

brand orientation.

I therefore expect to find support for the moderating role for masculinity-femininity as

Kirca et al. (2005) suggest in their article. However, here I use a hybrid orientation between

market and brand orientation instead of a pure market orientation. Since I expect extreme

masculine and extreme feminine cultures to value both aspects belonging to market and brand

orientation, I propose the following:

H4a: The relationship between a hybrid orientation and social performance is moderated by

national culture, in a way that the effect is higher for cultures with extreme scores

on masculinity or femininity.

H4b: The relationship between a hybrid orientation and economic performance is moderated

by national culture, in a way that the effect is higher for cultures with extreme

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3 Method

In this chapter, the research design is described and justified. It is explained which methods

were used for collecting the data and how the sample was drawn. Furthermore, an overview is

given of the predictor, outcome, moderator and control variables, including their measurement

scales and reliability scores. Finally, the statistical procedure of Chapter 4 is described.

3.1 Research design

To give an answer to the main research question and sub-questions, the study was conducted

within a mono-method quantitative survey design. As elaborated on before, past literature

mostly described qualitative, exploratory research on hybrid approaches to market and brand

orientation. Conducting quantitative research offered the possibility to find empirical support

for the propositions made in former qualitative studies by enabling the possibility of

hypothesis testing. Also, the power of quantitative research methods to enable the replication

of past research made it interesting to see whether the interactive relationship between market

and brand orientation Merrilees and Baumgarth (2016) used to operationalize hybrid

market-brand orientation led to similar outcomes within a museum context.

The study adopted a self-administered mail survey method. The questionnaire was

built with the Qualtrics Insight Platform. This made spreading the survey easy and quick and

offered the possibility of direct analysis afterwards. Before the final questionnaire was sent

out, a pilot test was conducted to see whether participants encountered any difficulties

concerning participating in the study. According to the feedback of ten piloting participants,

slight changes were made in the wording and formulation of a few questions and the

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Targeted respondents were museum directors and (marketing) managers, as the survey

contained strategic issues. Because of their involvement in the museums’ operations, they

were considered most capable of answering all questions adequately and therefore as most

valid respondents. Only one respondent per single museum was needed, however multiple

respondents per museum offered the opportunity for more reliable average scores. The

questionnaire consisted of five parts, of which the sequence was chosen strategically.

According to Burns et al. (2008), simple questions should be asked at the beginning of the

survey in order to ease the respondent, whereas sensitive questions – such as demographics –

should be placed toward the end. Therefore, the questionnaire firstly asked for museum

details, such as the name and type of the museum. In the middle of the questionnaire were the

three main researched variables: brand orientation, market orientation and museum

performance. The last part of the survey asked for the respondent’s occupation and age, since

these questions may involve more sensitive information.

The questionnaire consisted of 39 questions, of which one was only showed when

participants chose answer option “Yes” at the previous question. The three main concepts –

brand orientation, market orientation and museum performance – were measured on a 7-point

Likert scale. The answer options ranged from ‘strongly disagree’ to ‘strongly agree’. ‘Neutral’

was included as middle option. Although there were risks bound to including a middle option

concerning social desirability and lack of cognitive effort (Edwards & Smith, 2011), it was

desired to have a middle option serving as null point. This also prevented respondents to be

pushed in negative or positive direction, while the respondent’s sincere feeling towards the

statement was actually neutral. By choosing a 7-point Likert scale it was aimed to reduce the

chance for dishonestly choosing ‘neutral’, since people tend to use this middle option less

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3.2 Data collection

To be able to compare the countries in the sample according to their level of masculinity,

international data had to be acquired. In order to minimalize the chance that differences in the

findings were due to other national traits than the level of a country’s masculinity, the

countries included in the sample had to have the least possible deviation on any of the other

cultural dimensions described by Hofstede. The eventual sample consisted of Dutch,

American, Hungarian, Austrian, and Slovenian countries. As the histogram added in

Appendix (III) shows, all countries (or groups of countries, as I will explain further in sections

3.3.3 and 4.1), or at least two out of three, scored similarly on each dimension, enabling the

assignment of the outcomes to the masculinity dimension. For a further analysis of the sample

or a more comprehensive explanation of the masculinity versus the other cultural dimensions,

I refer to section 4.1 and 5.1.

To collect museum data internationally, national museum associations throughout

Europe and in the United States were approached with the request to spread the questionnaire

among their members or social networks. This resulted in the survey being shared among the

networks of the Hungarian National Centre of Museological Methodology and Information

(OMMIK), the national committee of the International Council of Museums (ICOM), the

American Alliance of Museums (AAM) and the Network of European Museum Organisations

(NEMO). Since the Dutch Museumvereniging was not willing to spread the survey

throughout their network, a database was conducted including all 480 museum members of

the Museumvereniging. Out of these 480 Dutch museums, 15 appeared to be permanently

closed or not fitting the definition of museums used for this study, resulting in a sample of

465 Dutch museums. For each of them, their general email address and phone number were

sought on their webpage. When available, also the personal email addresses and phone

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details were to be found, the museum’s online question form was used to send out the survey.

To increase the response rate the emails were personally addressed when names are available.

The targeted group of museums received an email with the request to participate in a 5

to 10 minute survey. The email sent to the Dutch museum was written in Dutch. The email

that was spread throughout the international networks was written in English, as was the

questionnaire for both Dutch and international respondents. A cover letter attached to the

email stated the study’s purpose and guaranteed confidentiality. Also did the email explain the

need for the questionnaire to be filled in by museum directors or (marketing) managers. A

week before the questionnaire’s deadline, a reminder was sent to the museums that did not

start the survey yet or dropped out before completing the survey. In total 189 respondents

participated.

3.3 Measures

To test the proposed hypotheses, three predictive variables, two outcome variables, one

moderating variable and three control variables were included in the questionnaire. Hereof,

five scale variables were included, namely market orientation, brand orientation, hybrid

orientation, economic performance and social performance. For hybrid orientation, a

combined variable of market orientation and brand orientation was constructed, which

differentiated between respondents being high on both market and brand orientation and

respondents which were either low on both or low on either of the two. Of the four scale

variables, all constructs had a highly reliable Cronbach’s Alpha of above 0.8 and all item-total

correlations showed to be 0.5 or higher. For each of those, mean variables were computed for

hypothesis testing. Conducting a factor analysis for the variable market orientation was

considered unnecessary, since the internal structure of the scale was out of this study’s

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3.3.1 Predictor variables

Market orientation. (11 items, α=0.89). The predictor variable market orientation was measured using a shorted version of the MARKOR scale of market orientation. The original

scale, designed by Kohli et al. (1993), consisted of 32 items, measuring the three

sub-constructs Intelligence Generation (10 items), Intelligence Dissemination (8 items), and

Responsiveness (14 items). However, with respect to the length of the survey after adding the

other three scale variables, it was decided to use the shorter version of the measurement scale

tested and validated by Farrell & Oczkowski (1997). The respondents were asked to indicate

the extent to which they agreed upon 10 statements regarding the museum’s market

orientation. These were to be answered using a 7-point Likert scale, with (1) meaning strongly

disagreeing upon the statement and (7) meaning strongly agreeing upon the statement. An

example question here was ‘In this organization, we meet with customers at least once a year

to find out what products or services they will need in the future’. The counter-indicative item

‘We are slow to detect changes in our customers' product references’ was recoded so that its

scores aligned with the other items included the scale. Because of the high Cronbach’s Alpha

of above 0.8 it was decided not to delete any items from the construct, even though excluding

the item ‘We are slow to detect changes in our customers' product references’ would have led

to a Cronbach’s Alpha of 0.90. Other reasons for retaining the item were the mere change of

0.02 when the item was deleted and the 11 item scale being proved to be valid in past

literature.

Brand orientation. (6 items, α=0.84). The predictor variable brand orientation was measured using the scale designed by Baumgarth (2009). The respondents were asked to

indicate the extent to which they agreed upon six statements regarding the museum’s brand

orientation. These were to be answered using a 7-point Likert scale, with (1) meaning strongly

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example question was ‘In this organization, we meet with customers at least once a year to

find out what products or services they will need in the future’. Deleting any of the items from

the scale would not have increased the Cronbach’s Alpha.

Hybrid orientation. To explore the role of culture in the relationship between hybrid approaches to market and brand orientation and museum performance, a new predictior

variable was created that classified museums as either hybrid oriented or not hybrid oriented.

Hybrid oriented was operationalized as having positive scores on both market orientation and

brand orientation. Here, the answer option ‘neutral’ was considered zero, meaning that hybrid

orientated museums scored above four on both market and brand orientation.

3.3.2 Outcome variables

Economic performance. (5 items, α=0.86). The outcome variable economic performance was measured using the scale proposed by Camarero and Garrido (2008b). The respondents were

asked to indicate the extent to which they agreed upon five statements regarding the

museum’s economic performance. These were to be answered using a 7-point Likert scale,

with (1) meaning strongly disagreeing upon the statement and (7) meaning strongly agreeing

upon the statement. An example question was ‘In the past 3 years we have fulfilled our

economic objectives’. The Cronbach’s Alpha would increase with 0.001 when deleting the

item ‘In the past 3 years jobs have been created’, however this change was regarded too small

for deleting the item.

Social performance. (6 items, 0.85). The outcome variable social performance was measured using the scale proposed by Camarero and Garrido (2008b). The respondents were

asked to indicate the extent to which they agreed upon five statements regarding the

museum’s economic performance. These were to be answered using a 7-point Likert scale,

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upon the statement. An example question was ‘Customers are enthusiastic and satisfied after

their visit’. Deleting any of the items from the scale would not have increased the Cronbach’s

Alpha.

Visitors. The outcome variable visitors was measured on a categorical level, with answer options varying from (1) less than 6 000 to (4) more than 100 000. Also an answer

option (5) ‘I do not know’ was included. This variable was used as a more objective

operationalization of economic performance rather than social performance, since the amount

of visitors is directly linked to revenues.

3.3.3 Moderator variables

Masculinity. The moderator variable masculinity (MAS) was operationalized according to Hofstede’s cultural dimension masculinity/femininity. A classification of low/moderate/high

MAS was made as such that countries with extreme high or low MAS scores were

differentiated from the middle scores. Countries with MAS scores of 80 or higher were

classified as high, countries with scores of 20 or lower were classifies as low, and the middle

60 percent was classified as moderate. This led to the five countries being spread across the

three groups, with the low MAS group including the Netherlands, the moderate MAS group

including the United States and the high MAS group including Hungary, Austria, and

Slovenia.

3.3.4 Control variables

Museum type. The control variable museum type was measured on a nominal level. Examples of answer options were ‘Modern art’, ‘Science and technology’, and ‘History’. Although no

literature was found on the relationships between museum type and the independent variables,

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better for some museum types than others. For example, museum types that have a rather

educational aim, such as history, are expected to benefit less from museum types that might

be better fitting commercial practices.

Visitors. The control variable visitors was measured on an ordinal level, with answer

options varying from (1) less than 6 000 to (4) more than 100 000. Also an answer option (5)

‘I do not know’ was included. According to Camarero, Garrido and Vicente (2014), larger

museums in terms of visitors show higher levels of innovation and their attitude towards

change. Since market and brand orientation involve practices imported from the commercial

sector and are – especially regarding brand orientation – relatively new concepts within

museum management, this finding by Camarero et al. (2014) led to the assumption that

museum size might also determine the level and effectiveness of market and brand orientation

within museums. Only the linear regression analyses controlled for visitors, since the variable

was used as the dependent variable in the ordinal regression analyses.

Employees. The control variable employees was measured on an ordinal level, with answer options varying from (1) less than five to (7) more than 100. Also an answer option

(8) ‘I do not know’ was included. As regards this operationalization of museum size, Vicente,

Camarero and Garrido (2012) suggest similar effects between employees and innovation as

described for visitors. Furthermore, in their article, Laukkanen et al. (2016) found a

moderating effect of company size in terms of employees on the relationship between market

and brand orientation and financial performance. Thus, this study included both

measurements of museum size as control variables. Other than the variable visitors, all

statistical tests controlled for employees.

Country. The control variable country was measured on a categorical level, dividing the museums included in this sample according to the country they were based in. All

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statistical tests except for the MANOVA controlled for the museums’ country, for the same

reasons as for which the study expected to find cultural differences

3.4 Statistical procedure

Data collection started at October 18th, 2016 and would initially close on November 9th, 2016.

However, due to encountered difficulties in finding international participants, the deadline got

deferred until December 9th, 2016. This offered the opportunity to approach a few more

international museum associations with the request to spread the survey and to send one more

reminder to the museums that did not completed the survey.

The study aimed to confirm the effects of a pure market orientation and pure brand

orientation on performance in a museum context, and to explore the possible superior effect of

a hybrid orientation between the two on museum performance. To test the first three

hypotheses, two hierarchical multiple linear regressions were conducted. Although there was

considerable correlation between the two independent variables market orientation and brand

orientation – meaning that including these in the same regression model could possibly lead to

multicollinearity problems concerning the regression’s output – it was decided to run two

multiple regressions rather than six separate ones, because of the following reasons: (1) the

correlation of 0.68 between market and brand orientation did not exceed the limit of 0.8, (2)

simply regressing market and brand orientation on performance separately could give an

erroneous estimate of the effect, since some of the effect of the independent variable left out

of the equation will be falsely assigned to the other independent variable, and (3) the Variance

Inflation Factors (VIF) of both market and brand orientation were below the limits of 10, and

even below 5.

Furthermore, to test for the robustness of the effect of market, brand, and hybrid

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included in the statistical analyses. Although data on visitor numbers were also obtained

through the self-administered questionnaire, this question was believed to provide an

additional, more objective operationalization of economic museum performance. Because of

the ordinal measurement level of this outcome variable, ordinal regression analyses were

conducted for the effects of market, brand, and hybrid orientation on visitor numbers.

Sequentially, a MANOVA was run to see whether culture serves as a moderator in the

relationship between hybrid orientation and museum performance. The program IBM SPSS

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4 Results

In this chapter, the statistical analyses testing the hypotheses of Chapter 2 were conducted.

Firstly, a brief description is given of the sample. Secondly, pre-tests were done to see

whether the data fitted the assumptions belonging to the tests described in Chapter 3.

Subsequently, the statistical tests were conducted and the results reported. Finally, exploratory

analysis was done and briefly described to enable a better interpretation of the outcomes.

4.1 Analysis of the sample

The research objectives of this study were museums. Pre-analyzing the data showed that the

participating museums encompassed various areas, most of which were historically themed.

Other frequently mentioned themes were the local area, modern art, and fine art. Less frequent

themes were for example decorative arts, house museums, or natural sciences. As regards

museum size, frequencies were checked for the amount of visitors the museum attracts on a

yearly basis, and the amount of employees that are currently working for the museum. 15.1%

of the museums in the sample receive fewer than 6 000 visitors a year, 25.2% between 6 000

and 20 000, 38.8% between 20 000 and 100 000, 18% over 100 000, and 2.9% stated that

they did not know the answer. As regards the museums’ employees, 30.9% of the museums

have less than five employees working at the museum, 18.7% between five and 10, 11.5%

between 10 and 20, 8.6% between 20 and 30, 10.1% between 30 and 50, 12.9% between 50

and 100, 6.5% over 100, and 0.7% mentioned to not know the answer. For a more

comprehensive overview see Table I.

As regards the implementation of marketing and branding practices, the museums

generally showed considerably high levels of market and brand orientation, with 57.5% of the

museums scoring higher than four on market orientation and 74.6% higher than four on brand

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Table I

Sample characteristics

Variable Low MAS

n=91 Moderate MAS n=21 High MAS n=27 Museum type Archaeological Modern art Decorative art Fine art House museum

Science and technology Natural sciences Local area Specialized General History Other Visitors < 6 000 6 000 – 20 000 20 001 – 100 000 > 100 000 I don’t know Employees < 5 5 – 10 4.4% 12.1% - 9.9% 1.1% 3.3% 3.3% 11.0% 8.8% 3.3% 30.8% 12.1% 14.3% 30.8% 35.2% 18.7% 1.1% 38.5% 18.7% - 4.8% - 14.3% 4.8% 9.5% - 14.3% 9.5% - 42.9% - 28.6% 4.8% 33.3% 19.0% 14.3% 23.8% 23.8% 3.7% 11.1% 3.7% 7.4% - 3.7% - 22.2% - 22.2% 11.1% 14.8% 7.4% 22.2% 55.6% 14.8% - 11.1% 14.8% 11 – 20 12.1% 9.5% 11.1% 21 – 30 7.7% 9.5% 11.1% 31 – 50 7.7% 9.5% 18.5% 51 – 100 > 100 I don’t know 11.0% 3.3% 1.1% - 13.8% - 29.6% 3.7% -

Note. Low MAS including the Netherlands. Moderate MAS including the United States. High MAS including Austria, Hungary, Slovenia.

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the participating museums were based in the Netherlands (65.5%). Besides Dutch museums,

the sample included 21 museums from the United States (15.1%), 19 from Hungary (13.7%),

6 from Austria (4.3%), and 2 from Slovenia (1.4%). As described above, the different

countries were classified regarding their level of masculinity MAS (low/moderate/high).

According to the operationalization used in this study – with low meaning a score of or below

20, moderate meaning a score between 20 and 80, and high meaning a score of or above 80 –

three MAS groups were made. The low MAS group included the Netherlands (MAS=14). The

moderate MAS group included the United States (MAS=62). The high MAS group included

Austria (MAS=80), Hungary (MAS=88), and Slovenia (MAS=100). None of the museums

had a parent museum based in another country than where the participating museum was

based. As presented in Table I, the low, moderate, and high MAS group all included a

considerable divergent sample according to type, visitors and employees.

4.2 Pre-analyzing the data

4.2.1 Regression analysis

To conduct the regression analyses testing the first three hypotheses, the data had to meet a

few assumptions. Firstly, the residuals of the outcome variables economic performance and

social performance needed to be normally distributed. As one can see in Appendix IV–A , the

residual plot of economic performance showed not to be evenly distributed horizontally. An

addition p-plot shows that the line deviates from the line downwards. However, Tabachnick

and Fidell (1996) argue that moderate violations do not lead to highly inaccurate regression

outcomes, taken that the sample size is not too small. According to a study done by Minitab

(2014), the probability of finding significant regression outcomes when the residuals are not

normal do not differ from normal distributed residuals already with sample sizes greater than

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normality as shown in the plots not being too excessive, conducting the regression analysis

was assumed to be valid. As regards social performance, the distribution of the residuals was

regarded normal based on the plots shown in Appendix IV–B.

Secondly, regression analysis assumes that the independent and dependent variables

were linearly correlated. Linearity tests showed that, for both economic performance and

social performance, all independent variables showed a non-significant deviation from

linearity, meaning that the linearity criterion for conducting regression analysis was met.

Thirdly, the data of the dependent variables were checked for their homoscedasticity.

As one can see in the scatterplot shown in Appendix IV–C, the distance between the dots and

the line showed to be consistent, meaning that the error term was the same across all values of

economic performance. As regards social performance, as shown in Appendix IV–D, the

deviation from the line tends to move slightly outwards. However, since also here the

distribution of the dots was considerably consistent, the dependent variables were considered

homoscedastic and therefore met the third criterion.

Fourthly, a last assumption for conducting regression analysis is that there is no or

little multicollinearity between the independent variables. Although there was considerable

correlation between the independent variables market orientation and brand orientation, it was

decided to run two hierarchical regression analyses instead of six separate single regressions

(see section 3.4 for the reasoning behind this decision). To be able to include a variable for the

interaction effect between market and brand orientation, centralized scores were conducted

for both. This was done because an interaction variable constructed by multiplying market

orientation with brand orientation would obviously show extreme correlation levels with the

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4.2.2 MANOVA

The fourth hypothesis was tested by conducting a one-way MANOVA. Also here, the data

was checked before running the test. Firstly, since MANOVA requires a normal distribution

of its dependent variables’ residuals, a Shapiro-Wilk test of normality was used to test for

normality on both economic performance and social performance. Results showed that the

data was normally distributed for both variables.

Secondly, the independent variable was assessed for its univariate and multivariate

outliers on the dependent variables economic performance and social performance within

each group. Concerning the univariate outliers, none of the z-scores within the groups

exceeded the value of 3.29. As regards the multivariate outliers, a test for Mahalanobis

Distance showed that the data neither included multivariate outliers here.

Thirdly, a Box's M test of equality of covariance showed that the within-group

covariance matrices were equal, meeting the homogeneity assumption, and finally, only one

independent variable was used for testing hypothesis four, meaning that no multicollinearity

could exist between the independent variables.

4.2.3 Missing data

Of the 189 respondents, 22 had only filled out the first part of the survey, including the name

of the museum, the country where the museum was based, the type of the museum and

whether or not the museum had a parent country. Because these respondents did not provide

any information regarding the main variables of the study, it was decided to exclude them

from the dataset. For the 167 respondents that remained, the missing data were first analyzed

using logic reasoning. As concerns the main variables used in this study, one could argue that

the variables referring to a museum’s performance could be considered involving sensitive

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first question about economic performance, two when being presented the first question about

social performance, and none somewhere in between the second and last question of both

economic and social performance. Thus, the questions regarding the two types of performance

only led to a small dropout rate, however, simply dropping those respondents could lead to

biased outcomes. Other points in the questionnaire where respondents were likely to dropout

was the seventh question of market orientation – starting a new page of the questionnaire – or

the first question of brand orientation. To estimate whether the missing values were missing at

random or not, and thus how they had to be dealt with, the values also needed to be analyzed

statistically.

In total, 11.0% of the data showed to be missing, which was partly due to one question

being added later (concerning the volunteers involved in the museum, after one museum

director suggested the inclusion of the question). When excluding this variable from the

missing data analysis, the amount of missing data slightly dropped to 10.2% of the total

dataset. Little’s test for MCAR (Missing Completely at Random) indicated that the data were

missing completely at random, meaning that, overall, the individuals with incomplete data

were a random subset of the whole dataset (Cole, 2008). According to Raghunathan (2004),

the MCAR is a strong assumption that, when met, validates analyzing the data inly including

only those that have observed values. Therefore, it was considered more harmful to impute

data for those who dropped out than excluding them from the analyses, leading to a final

sample size of 139 respondents. The remaining 4.0% of missing values were replaced by

mean.

4.2.4 Correlation matrix

To check whether significant correlations existed between the independent and dependent

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