Abstract
The objective of this research is to assess the impact of market orientation on business performance in the petrol stations in Timor-Leste. In our study, we used questionnaire from previous authors to collect data. Hypothesis was tested using Smart-PLS 3.0. The result shows that market orientation reflected by consumer orientation, competitor orientation, and inter-functional coordination had a positive and significant impact on business performance. This study contributes to the literature on market orientation and business performance which still face inconsistent results from previous researches. This study is also expected to be considered by the government in developing policies related to small and medium enterprise (SMEs) management. In the middle of this, market orientation could be one determinant factor to be considered as strategic fitness to improve SME’s financial and nonfinancial performances in Timor-Leste. In addition, SME’s managers could look at market orientation as a business strategy to improve their business performance.
Highlights
Increasing recent high industrial competition and environmental uncertainty, firms are trying to retain their sustainable growth by adopting market orientation strategy
Numerous empirical studies confirm that market orientation strengthens business performance (Nguyen, 2018; Abbu & Gopalakrishna, 2019; Sampaio et al, 2019), while other studies show that market orientation have insignificant impacts on the business performance (Kajalo & Lindblom, 2015), and/or negative impacts on business performance (Acosta, Crespo, & Agudo, 2018; Idrus, Ahmar, & Abdussakir, 2019)
The Eastern region represented by Baucau and Mananuto Municipalities, Central region represented by Dili, Ermera, and Aileu Municipalities, and the Western region represented by Liquica and Bobonaro Municipalities
Summary
Increasing recent high industrial competition and environmental uncertainty, firms are trying to retain their sustainable growth by adopting market orientation strategy. Firm managers can be benefited by this research through considering the importance of costumer’s demands, market intelligence and internal resource consolidation as basis for offering products and services in order to be able to sustain high competitive advantages and retain firm performance in dynamic change of market environment. This could be in line with Osorio et al (2019) states that firm only focuses on exploitation activities is possibly ineffective in dealing with the recent market demands because of its limited new ideas and strategies
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