Impact of market orientation on firm’s customer-based performance: the moderating role of employee orientation

ABSTRACT

In this paper, we examine the influence of employee orientation (EO) on converting constituent dimensions of market orientation (MO) into customer-based performance (CBP) and consider the robustness of these relationships in the context of firm age and size. Based on a sample of 410 mid-to-senior-level managers working in UK service industries, we find that all three dimensions of MO positively influence CBP. While highlighting the utility of employing a multidimensional approach to evaluate the customer-based outcome of MO implementation we highlight the nuanced role of EO in strengthening the MO–performance relationship and emphasise the crucial role employees play in implementing different strategic orientations in a perceivable way to customers.

KEYWORDS:

• Market orientation
• employee orientation
• customer-based performance

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Mujahid Mohiuddin Babu

Mujahid Mohiuddin Babu works as Lecturer in Marketing in Coventry University. His research interest lies in the areas of application of technology in marketing, data analytics, firm’s strategic orientation, value creation, customer engagement and employee engagement. His research works have been presented and published in various leading journals and conferences of marketing such as Technological Forecasting and Social Change, Information System Frontiers, Strategic Change, Journal of Strategic Marketing, EMAC, Academy of Marketing, American Marketing Association (AMA) and Academy of Marketing Science (AMS).

Hongfei Liu

Hongfei Liu is a Lecturer in Marketing at Essex Business School, University of Essex, UK. His research interests include digital marketing, cyberpsychology and social media, service and customer relationship management and new technology adoption in consumer market. Hongfei’s work has been published in Journal of Business Ethics and proceedings of numerous international conferences, including American Marketing Association, Academy of Marketing and British Academy of Management.

Chanaka Jayawardhena

Chanaka Jayawardhena is Professor of Marketing at Hull University Business School, UK. His current research interests are in investigating consumption experiences, consumer relationships with both other customers and firms, with particular interest in the virtual/electronic and service marketplaces. He has won numerous research awards including three Best Paper Awards at the Academy of Marketing Conference. Previous publications have appeared in the Journal of Business Research, Industrial Marketing Management, European Journal of Marketing, Journal of Marketing Management, Journal of General Management, Journal of Internet Research, among others.

Bidit Lal Dey

Bidit Lal Dey is a Senior Lecturer in Marketing and the Deputy MBA Director. His research interest revolves around the adoption and use of technologies particularly in emerging economies. He has also research extensively on consumer identity, acculturation and co-creation of value. He has been actively involved in conducting a number of training programmes and consultancy projects. He is a fellow of the Higher Education Academy and also a member of the British Academy of Management, and Academy of Marketing. He has published in top marketing, management and information systems journals. Bidit has co-edited a monograph and is currently guest editing a special issue of Technological Forecasting and Social Change.