The Market Orientation-Performance Link: Some Evidence from the Public Sector and Universities

Abstract

ABSTRACT A basic tenet of the marketing discipline holds that organisations that adopt a market orientation will exhibit better performance. This relationship does not appear to have been tested for not-for-profit organisations. The basic objective of this study is to add insight into the generalisability of the market orientation-performance relationship by focusing on two important sectors in the not-for-profit category. To do this the constructs of market orientation and performance are first considered and suitable measurement instruments are identified. Research is carried out among Australasian universities and in the Australian public sector. In both cases, the findings confirm a positive relationship between market orientation and performance. The implications of the studies are discussed, limitations are noted and directions for further research are also indicated.