Market Orientation Critical Success Factors of Malaysian Manufacturers and Its Impact on Financial Performance

Abstract

The study examines critical success factors of market orientation in the context of Malaysian firms. Besides, the study also investigates the relationship between market orientation and financial performance. Malaysian manufacturing firms represent the sample of the study. Data was collected using mail questionnaire survey approach. One hundred and fifty eight Malaysian manufacturing organizations participated in this study. Results of this study indicated that there were five critical success factors of market orientation practices in the context of Malaysian manufacturing firms: market focus, market action, market planning, market feedback and market coordination. The results also revealed that market action and market planning were positively related to financial performance. Results of individual relationship between market orientation dimensions and performance of Malaysian manufacturing in this study supported previous studies carried out in other developing countries as not all market orientation variables have a direct effect on organisational performance. The outcome of this study provides vital information from a developing country perspective on the impact of market orientation practices on manufacturing organisations’ performance.