Market orientation and performance in the service industry: A data envelopment analysis
Abstract
The relationship between market orientation and performance is a cornerstone in the market orientation literature. However, few empirical studies applying objective performance measures raise concerns about whether or not the most market-oriented firms are the best performers. This article reports a study testing the market orientation model using a multi-method approach to measure performance. The study applies two objective performance measures-relative productivity, calculated by data envelopment analysis (DEA) and return on assets (ROA)-and one subjective performance measure-perceived profitability compared to key competitors. Building on empirical data from the hotel industry, the results indicate that market orientation has only a modest effect on relative productivity and no effect on return on assets. The strongest effect of market orientation on performance occurs when applying the subjective performance measure.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Journal of Business Research.
Volume (Year): 60 (2007)
Issue (Month): 11 (November)
Pages: 1191-1197
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Web page: http://www.elsevier.com/locate/jbusres
Related research
Keywords: Market orientation Performance measurement Data envelopment analysis Service industry;References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Seyed Mohammad FATEMINEJAD & Fatemeh BAGHERI & Hannan Amuzadeh MEHDIRAJI & Reza GHAFFARITABAR, 2012. "Subsystem Strategy Setting for Iran Local Market:Benchmarking Approach," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 85-92.
- Avkiran, Necmi K. & Thoraneenitiyan, Nakhun, 2010. "Purging data before productivity analysis," Journal of Business Research, Elsevier, vol. 63(3), pages 294-302, March.
- Paul Amadieu & Jean-Laurent Viviani, 2010. "Intangible effort and performance: the case of the French wine industry," Agribusiness, John Wiley & Sons, Ltd., vol. 26(2), pages 280-306.
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