The Consequences of Market Orientation on Business Performance
AbstractThe present research aims to develop a conceptual model to test the market orientation dimensions: customer orientation, competitor orientation, interfunctional coordination, and their effects on organizational performance. The most common question found in marketing studies refers to the role assigned to the marketing concept to achieve performance. Often, companies are forced to undertake different strategic approaches to be competitive, but few companies manage to become market oriented and meet difficulties in implementing the marketing concept, because the environment in which they operate are extremely dynamic. The present empirical study utilized the results obtained by processing 121 completed questionnaires containing data from large firms that operate in Romanian. The presence of the following market orientation dimensions: customer orientation, competitor orientation and interfunctional coordination, and their consequences on organizational performance were tested using simple linear regression. The resultsÂ show that the surveyed firms are market oriented and the positive consequences of this orientation dimensions on performance. The major contribution of the study is that it provides empirical proof of the effect of marketing on firm performance.
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