Market orientation and performance in the service industry: A data envelopment analysis
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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please 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.:
- Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
- Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-598, October.
- Slater, Stanley F. & Narver, John C., 2000. "The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication," Journal of Business Research, Elsevier, vol. 48(1), pages 69-73, April.
- Bhargava, Mukesh & Dubelaar, Chris & Ramaswami, Sridhar, 1994. "Reconciling diverse measures of performance : A conceptual framework and test of a methodology," Journal of Business Research, Elsevier, vol. 31(2-3), pages 235-246.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Webb, Dave & Webster, Cynthia & Krepapa, Areti, 2000. "An Exploration of The Meaning and Outcomes of a Customer-Defined Market Orientation," Journal of Business Research, Elsevier, vol. 48(2), pages 101-112, May.
- Piercy, Nigel F. & Harris, Lloyd C. & Lane, Nikala, 2002. "Market orientation and retail operatives' expectations," Journal of Business Research, Elsevier, vol. 55(4), pages 261-273, April.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- Chebat, Jean-Charles & Filiatrault, Pierre & Katz, Arnon & Tal, Shlomo Mai, 1994. "Strategic auditing of human and financial resource allocation in marketing : An empirical study using data envelopment analysis," Journal of Business Research, Elsevier, vol. 31(2-3), pages 197-208.