Synthesised model of market orientation-business performance relationship

G Nwokah

doi:10.4102/ac.v6i1.91

Abstract

Purpose: The purpose of this paper is to assess the impact of market orientation on the performance of the organisation. While much empirical works have centered on market orientation, the generalisability of its impact on performance of the Food and Beverages organisations in the Nigeria context has been under-researched. Design/Methodology/Approach: The study adopted a triangulation methodology (quantitative and qualitative approach). Data was collected from key informants using a research instrument. Returned instruments were analyzed using nonparametric correlation through the use of the Statistical Package for Social Sciences (SPSS) version 10. Findings: The study validated the earlier instruments but did not find any strong association between market orientation and business performance in the Nigerian context using the food and beverages organisations for the study. The reasons underlying the weak relationship between market orientation and business performance of the Food and Beverages organisations is government policies, new product development, diversification, innovation and devaluation of the Nigerian currency. One important finding of this study is that market orientation leads to business performance through some moderating variables. Implications: The study recommends that Nigerian Government should ensure a stable economy and make economic policies that will enhance existing business development in the country. Also, organisations should have performance measurement systems to detect the impact of investment on market orientation with the aim of knowing how the organisation works. Originality/Value: This study significantly refines the body of knowledge concerning the impact of market orientation on the performance of the organisation, 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 of market orientation

Highlights

Market orientation is one of the major research streams in strategic marketing developed during the last decade (Sin, Tse, Yau, Chow & Lee, 2003:910 and Guo, 2003:1154)
Despite the theoretical contributions of many scholars on market orientation literature, it appears that most food and beverages organisations in Nigeria do not adopt market orientation in efforts for customer
The survey results suggest that a valid instrument for measuring the market orientation of food and beverages organisations in Nigeria can be developed based on the most robust elements of the Narver and Slater (1990) scales

Summary

Introduction

Market orientation is one of the major research streams in strategic marketing developed during the last decade (Sin, Tse, Yau, Chow & Lee, 2003:910 and Guo, 2003:1154). It defines the set of activities developed by organisations to permanently monitor, analyse and respond to market changes such as consumer preferences, faster technological growth, and growing competitive rivalry (Maydeu-Olivarers & Lado, 2003:284). A market-oriented organisation is presumed to have superior market – sensing and customer-linking capabilities, and these capabilities are presumed to assure them of higher profits in comparison with organisations that are less market-oriented (Agarwal et al, 2003).

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Conclusion