Measuring market orientation in the Indonesian retail context

Abstract

The marketing literature reveals little agreement on the generalizability of two market orientation scales that were developed in earlier works. In this study, a market orientation scale was developed for a specific context,namely retailing and then assessed for reliability and validity. The data were collected from Indonesian retail firms. Three alternative models of the dimension structure of the market orientation construct were tested using confirmatory factor analysis. This procedure was then followed by a purifying process in order to investigate the stability of the items in the final MARKOR scale.The findings suggested that the four multi-item scales developed showed evidence of reliability and validity in this sample. Further, the findings showed that market orientation has positive effects on both supplier partnership and retail performance.