Strategic market orientation and business performance

Abstract

PurposeThe aim of this paper is to examine the extent to which market orientation impacts the business performance of an organization.Design/methodology/approachWhile much empirical work has centered on market orientation, the generalizability of its impact on the performance of food and beverages organizations in the Nigerian context has been under‐researched. The commentary adopts a triangulation approach by examining the theoretical and researched issues on market orientation and their influence on the business performance of food and beverages organizations in Nigeria.FindingsThe commentary validates earlier instruments but does not find any strong association between market orientation and business performance in the Nigerian context using food and beverages organizations. The reasons underlying the weak relationship between the market orientation and business performance of food and beverages organizations include government policies, new product development, diversification, innovation and devaluation of the Nigerian currency.Research limitations/implicationsOne important contribution of this paper is that market orientation leads to business performance through some moderating variables. The commentary recommends that the Nigerian Government should ensure a stable economy and implement economic policies that will enhance existing business development in the country. Also, organizations should have performance measurement systems to detect the impact of investment on market orientation with the aim of learning how the organizations work.Originality/valueThe paper significantly refines the body of knowledge concerning the impact of market orientation on the performance of organizations, and thereby offers a model of market orientation and business performance in the Nigerian context for marketing scholars and practitioners. This model will, no doubt, contribute to the body of existing literature on market orientation.