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Market Orientation and Organizational Performance

Author

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  • Chee-Hua Chin
  • May-Chiun Lo
  • T. Ramayah

Abstract

Orientation plays a vital role for organizations to compete to create sustainable competitive advantage. The objective of this study is to examine the relationship between market orientation (MO) and organizational performance (OP) with service quality (SQ) as a moderator in the context of the hotel industry in Malaysia. MO and OP were conceptualized as three- and two-dimensional constructs, respectively, whereas SQ, which consists of two-dimensional constructs, namely, technical quality and functional quality, was used as a moderator. Data were gathered through a survey using a structured questionnaire with a sample of 187 executive-level employees employed in hotels rated three stars and above in Malaysia. SmartPLS 2.0 (M3) with path modeling and bootstrapping was used to examine the standard error of the estimate and t -values. The findings suggest that only competitor orientation dimension of MO was significantly related to OP, whereas customer orientation and inter-functional coordination were not related. Interestingly, SQ was found to have moderated the relationship between MO and performance of the hotels in Malaysia. SQ exists to fill in the gap between customers’ expectations and their perception of the service providers’ performance that further creates differentiation and competitive advantage, which enhance MO practices and ultimately lead to improvements in the firm’s performance. Implications of the findings, potential limitations of the study, and directions for future research are highlighted.

Suggested Citation

  • Chee-Hua Chin & May-Chiun Lo & T. Ramayah, 2013. "Market Orientation and Organizational Performance," SAGE Open, , vol. 3(4), pages 21582440135, November.
    • Handle: RePEc:sae:sagope:v:3:y:2013:i:4:p:2158244013512664
    DOI: 10.1177/2158244013512664
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    Cited by:

    1. Moad Hamod Saleh & Mohammed A. Al-Hakimi, 2022. "The Effect of Marketing Ethics as a Moderator on the Relationship Between Competitor Orientation and SMEs’ Performance in Saudi Arabia," SAGE Open, , vol. 12(3), pages 21582440221, August.
    2. Faiz Muhammad Khuwaja & Waheed Ali Umrani & Sanober Salman Shaikh & Ammar Ahmed & Sanaullah Shar, 2019. "University Markor: A Context-Specific Scale to Measure Market-Orientation in Universities," SAGE Open, , vol. 9(2), pages 21582440198, June.
    3. Leonard Omondi Otii & Kenneth Lawrence & Humphrey Omondi, 2020. "Technological innovation promoters, service quality practices and performance of SACCOs in Kenya: An integrative model," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 392-403, July.
    4. Debasis Bharadwaj & Ayesha Farooq & Biranchi N Jena, 2017. "Value Discipline Dimensions on Organisational Performance and Competitive Advantage: A Study on Pharmaceutical Companies in Diabetes Care," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 9(3), pages 88-102, April.
    5. Marc Oliveras-Villanueva & Josep Llach & Jordi Perramon, 2020. "Service Quality in Hospitality and the Sustainability Effect: Systematic Literature Review and Future Research Agenda," Sustainability, MDPI, vol. 12(19), pages 1-16, October.
    6. Haim Hilman & Narentheren Kaliappen, 2014. "Market Orientation Practices and Effects on Organizational Performance," SAGE Open, , vol. 4(4), pages 21582440145, September.

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