How manufacturer market orientation influences B2B customer satisfaction and retention: empirical investigation of the three market orientation components

Abstract

Purpose – This paper aims to examine how the three market orientation components (customer orientation, competitor orientation and interfunctional coordination) influence industrial manufacturers’ customer relationship management outcomes in a business-to-business (B2B) context. Design/methodology/approach – In linking market orientation components and their relationship outcomes, the authors examined the moderating effect of interfunctional coordination. The model was tested using data collected from 279 manufacturing firms in the USA. Findings – While customer orientation and competitor orientation both influence customer relationship outcomes, interfunctional coordination does not. However, interfunctional coordination lessens the positive relationships between customer orientation and customer retention as well as between competitor orientation and customer satisfaction. Although competitor orientation has a slightly stronger impact on customer satisfaction than customer orientation does, it only has an indirect relationship with customer retention through customer satisfaction. Originality/value – The findings illustrated the effects of the three components of market orientation on customer relationship outcomes within manufacturing-centered firms, and provided managerial implications to industrial manufacturers on market orientation implementation strategies in regard to successful B2B customer relationship management.