Propositions and a Model: Do Excellent Market Oriented Firms Who Deliver Quality Service Perform Better?

Abstract

Excellence and quality would be regarded by most managers as worthy objectives. These managers would also, in all likelihood, agree on the importance of imbuing their organisation with a market orientation, and believe that these factors contribute to corporate performance. A sterner interpretation of this, however, would necessitate a more in‐depth understanding of these constructs. What is excellence? Is there a link between excellence and a market orientation? Is the market oriented service firm more concerned with understanding and managing customer expectations and delivering a reliable service? How do these variables affect corporate performance? While there are studies linking a number of these individual constructs to performance, (Berry and Parasuraman, 1991; Peters and Waterman, 1982; Narver and Slater, 1990; Narver, Park and Slater, 1992; Jaworski and Kohli, 1993) less work appears to have been done on investigating the more complex relationships between these constructs. The objectives of this article are to propose the existence or otherwise of relationships between excellence, market orientation, expectations management practices, “being reliable”, and corporate performance, and, to suggest ways in which these can be studied in service firms.