Relationship between market orientation and organizational performance in public hospitals in China

Abstract

There are abundant research arguments on market orientation, including measurement scales and the relationship between market orientation and business performance. However, most of these researches focus mainly on business organizations, while study in public hospitals is extremely limited. Basing on existing literatures about market orientation and business performance, the authors develop a framework to describe the relationship between market orientation and organizational performance in public hospitals in China. The findings suggest that market orientation has significant positive effects on both organizational performance and organizational learning in public hospitals. The results of this research also show that organizational learning has a significant positive effect on organizational performance and it mediates the impact of market orientation on organizational performance in public hospitals. These findings are significant to both the market orientation theory and management implication of the theory in public hospitals.