Market orientation and performance: empirical tests in a transition economy

Abstract

Although the management literature is replete with empirical studies on market orientation, a review of the evidence so far suggests that the majority of studies have been based on industrialized countries. Despite the fact that the business environments in many developing economies are rapidly undergoing transformation, thereby influencing the metamorphoses of firms from production to marketing orientation, empirical research relating to market orientation in emerging countries remains scant. In an attempt to provide further insight into the global importance of market orientation, this study investigated its link with business performance in a liberalized developing country. Potential influences of market dynamism, competitive intensity and market growth on this relationship were also examined. The results indicate that although market orientation does not appear to have a direct impact on sales growth or return on investment, the competitive environment does influence the market orientation-performance link. Directions for future research, limitations of the study and managerial implications of the findings are subsequently identified and discussed.

Keywords:

• Market Orientation
• Emerging Markets
• Liberalized Economies
• Competitive Environment
• Developing Countries
• Performance