Market orientation and performance: a meta‐analysis

Abstract

PurposeTo assess quantitatively the impact of market orientation on the performance of the firm. While much empirical work has centered on market orientation, the generalizability of its impact on performance has been under‐researched.Design/methodology/approachA substantive meta‐analysis quantitatively summarizes the results of empirical studies of the direct and indirect impact of market orientation on three outcomes. A second, methodological meta‐analysis assessed the influence of methodological variables on explained variance in performance.FindingsThe direct, indirect, and total impacts of market orientation on performance were all significant. Additionally, the geographic location of the study and the performance measure used (but not the scale) affected explained variance.Research limitations/implicationsFirst, across study contexts, market orientation affects performance. Second, its impact might be stronger than previously thought due to the indirect paths not considered in previous research. Third, the strength of its impact depends on the country in which it was implemented; managers should expect higher payoffs in less developed countries.Originality/valueThe findings of this study significantly refine the body of knowledge concerning the impact of market orientation on the performance of the firm, and thereby offer an improved conceptual framework for marketing planners.