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Internal and external market orientation as organizational resources - consequences for market and financial performance

Author

Listed:
  • Boris Snoj

    (Department of Marketing Faculty of Business and Economics, University of Maribor
    Department of Marketing Faculty of Business and Economics, University of Maribor)

  • Borut Milfelner

    (Department of Marketing Faculty of Business and Economics, University of Maribor)

Abstract

The concept of internal marketing has been discussed in marketing literature for over 30 years. Despite this fact there is little theoretical and empirical evidence of the way in which the internal market orientation impacts market and financial performance. On the other hand, there is considerable empirical evidence concerning the impact of the external market orientation on market and financial performance. Consequently, very few research projects have dealt with the impact of both market orientations on the performance of companies. In this paper a structural model was constructed, consisting of the internal market orientation, external market orientation, market performance and financial performance. With the help of the structural equation model the hypothesis that the internal market orientation is a significant predecessor of the external market orientation was confirmed. The external market orientation was found to significantly influence market as well as financial performance.

Suggested Citation

  • Boris Snoj & Borut Milfelner, 2010. "Internal and external market orientation as organizational resources - consequences for market and financial performance," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 22(2), pages 223-241.
    • Handle: RePEc:zag:market:v:22:y:2010:i:2:p:223-241
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    References listed on IDEAS

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    Cited by:

    1. Matevž Rašković & Maja Makovec Brenčič, 2015. "The Trust-Committment-Flexibility Link in Transnational Buyer-Supplier Relationships: A Network Perspective," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 27(1), pages 7-19.
    2. Matevž Rašković & Maja Makovec Brenčić & Anuška Ferligoj & Jan C. Fransoo, 2013. "Relationship learning as a dimension of relationship quality: tentative evidence from transnational buyer-supplier relationships," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 25(1), pages 37-50.

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