Service Reliability and the Market Orientation- Performance Link

Abstract

Delivering what is promised has been defined in the service quality literature as the dimension of reliability. It has also been identified as the single most important dimension of service quality. The 1990's have witnessed extensive work in the marketing literature on the construct of market orientation, which has been defined as the degree to which the marketing concept is implemented. There is also considerable evidence to support a link between market orientation and performance. If service reliability is salient to customers, and customer orientation is crucial in the application of the marketing concept, then it seems logical to assume a relationship between service reliability, market orientation and performance. Surely, the market-oriented firm devotes greater attention to service reliability, and being reliable pays off? Surprisingly, these links have not been demonstrated empirically. This paper seeks to address that shortfall. Specifically, we consider the role of service reliability on the market orientation performance relationship. We begin by discussing market orientation and performance, before reviewing relevant theory on service reliability and building a model describing the interaction among the constructs. Next, we describe an empirical study of service firms in the UK, wherein we investigate the effects of service reliability on the relationship between market orientation and performance. We conclude with a discussion of the results and consider their implications for theory and practice.