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Market Orientation and Business Performance: a Study of Interrelationships and Effects in a Small sized Hotels within Lagos State Metropolis

Author

Listed:
  • P.K.A. Ladipo

  • A. Ganiyu Rahim

  • C. Abayomi Oguntoyibo

  • I. Olatunji Okikiola

Abstract

The relationship between market orientation and business performance has been a subject of debate in marketing literature. To date, there is no consensus opinion and empirical study in the context of small sized-hotels in Nigeria is scanty. This study examines the relationship between market orientation and business performance. Cross-sectional survey research design was adopted. Questionnaire was used to obtained data from 300 employees of the selected hotels within Lagos metropolis. Data collected were analyzed using correlation and regression analysis. The results suggest that only customer orientation is significantly contributing to the performance of the small sized hotel operators. Specifically, both competitor orientation and inter-functional coordination, though practiced by the hotels are not significantly linked to its performance. Furthermore, the study discovered that market orientation practices significantly influence business performance of the selected hotels. Based on the findings, the study concludes that hotel operators need market orientation practices to enhance their performance. Hence, market orientation will continue to be a vital strategy not only in improving firm’s understanding of customers’ and competitors, but to enhance synergy across the organization. From the preceding conclusion, the study recommends that hotel operators should commit substantial resources and effort in cultivating a customer oriented culture, and transmit it across the organization to create strategic alignment. Furthermore, the competitive environment should be closely monitored to identify profitable business opportunity and threats that could affect their growth and sustainability.

Suggested Citation

  • P.K.A. Ladipo & A. Ganiyu Rahim & C. Abayomi Oguntoyibo & I. Olatunji Okikiola, 2016. "Market Orientation and Business Performance: a Study of Interrelationships and Effects in a Small sized Hotels within Lagos State Metropolis," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(4), pages 98-119, December.
    • Handle: RePEc:khe:scajes:v:2:y:2016:i:4:p:98-119
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    References listed on IDEAS

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    Cited by:

    1. Monica Clarkson Gajere, 2023. "Strategic orientation and performance of SMEs in Nigeria: moderating role of competitive intensity," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-13, December.
    2. Nwankwo Cosmas Anayochukwu & Kanyangale Macdonald Isaac, 2019. "Market Orientation and Survival of Small and Medium Enterprises in Nigeria," Foundations of Management, Sciendo, vol. 11(1), pages 291-304, January.

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    JEL classification:

    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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