Abstract
Abstract Many researchers have explored the relationship between market orientation and firm performance in manufacturing and services industries but such studies in agri-food SMEs are scarce. Previous research conducted has conceptually and empirically supported the notion that market orientation independently or collectively have positive correlations with the business performance of organization (such as Narver and Slater, 1990; Jaworski and Kohli, 1993; Lee and Peterson, 2000). The aim of this paper is to examine the marketing practices and the marketing orientation-business performance relationship among SMEs in agri-food sector in Malaysia. This study also investigated the role of the external environment in the market orientation-performance linkage. From an analysis of a survey data of 102 agri- food organizations, three dimensions namely customer-competitor orientation, inter-functional coordination and information dissemination extracted from factor analysis result of market orientation. The study revealed that customer-competitor orientation and information dissemination were positively related to business performance. In terms of the role of external environment, two dimensions produced by factor analysis, market-technology turbulence and competitive intensity did not moderate the relationship between market orientation and business performance. Findings are discussed and implications are highlighted. Keywords: Market Orientation, External Environment, Business Performance
Highlights
Market orientation is a popular term used by marketers as indicator of the extent to which organisation implements its marketing concept
A great deal of attention has been focused on the concept of market orientation in the literature since the topic was re-ignited by Kohli and Jaworski (1990) and Narver and Slater (1990)
This study aims to determine the influence of external environment on the relationship between market orientation and business performance
Summary
Market orientation is a popular term used by marketers as indicator of the extent to which organisation implements its marketing concept. The link between market orientation and company performance is widely highlighted and contended that market orientation is important to firms because of its positive association with performance. Some studies find that market orientation associate positively with business performance Several studies do not find significant direct effect or weak relationships between market orientation and business performance (Diamantopoulos & Hart, 1993; Greenley, 1995; Han et al, 1998; Siguaw et al, 1998, Nwokah, 2008, Appiah-Adu, 1998, Bhuian (1997) and Sargeant and Mohamad, 1999)
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