An international examination of market orientation and performance in residential property management

Abstract

PurposeThe paper offers clarity to the market orientation (MO) and performance relationship in real estate by examining the limited relevant literature, presenting international results and discussing the implications for market orientation researchers and real estate practitioners.Design/methodology/approachBased on a survey of 1,251 individual renters in the USA, the United Kingdom (UK) and Canada, this study examines the relationship between residential property managers’ MO and performance. It extends MO research in real estate by focusing on property management as opposed to property development.FindingsThe results show that MO and performance are correlated in all three countries. Commitments to understanding and serving customers and differentiating from competitors are shown to enhance performance measures including residential tenants’ loyalty toward the property manager, trust in the property manager, pride in rental accommodation and commitment to paying rent on time.Originality/valueThis study is one of the largest MO studies in real estate in terms of sample size and offers a unique international perspective. The research is novel as MO is evaluated by tenants as opposed to self-assessed by firms. The paper offers a new measure of property manager performance and provides strategic directives for real estate professionals seeking to enhance competitiveness.