Aspects of Market Orientation of English and Welsh Charities

ABSTRACT

The relationship between market orientation, organisational size and performance has long been of interest to academics and practitioners alike. Recently the topic has attracted the interest of charities who, facing increasing competition and environmental complexity, are seeking differentiation and competitive advantage. The structure of market orientation is defined in terms of customer and competitor focus. Having mapped both level and structure, we then explore the relationship between market orientation, size and performance. Sampling registered charities in England and Wales randomly, a relatively high level of market orientation was observed, particularly amongst larger charities. A positive correlation emerged between market orientation and performance with an observed tendency towards customer rather than competitor orientation, although both elements of market orientation appear to be related to performance. Interestingly, small charities appear to have the lowest level of market orientation and simultaneously the strongest correlation between orientation and performance, suggesting that they are operating sub-optimally.

KEYWORDS:

• Charities
• market orientation
• size
• performance