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Impact of Market Orientation on Business Performance: Role of Employee Satisfaction and Customer Satisfaction

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  • Jeevan Jyoti
  • Jyoti Sharma

Abstract

Market orientation is a business perspective that makes the customer the focal point of a company’s total operation. Market-oriented firms seek to understand customers’ expressed and latent needs and develop superior solutions for those needs. It is an organizational culture that most effectively and efficiently creates the necessary behaviour for the creation of superior value for buyers and thus continuous superior performance for the business. The research idea stems from academic findings that market orientation not only affects the performance of the concern directly but also indirectly. The study is based on primary research. Data has been collected from top management executives, employees and customers of different automobile showrooms. The scales have been purified and validated with the help of exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The results of structure equation modelling (SEM) revealed a significant relationship between market orientation and business performance. The indirect effects of market orientation on business performance through employee satisfaction and customer satisfaction have been explored, which yielded significant results.

Suggested Citation

  • Jeevan Jyoti & Jyoti Sharma, 2012. "Impact of Market Orientation on Business Performance: Role of Employee Satisfaction and Customer Satisfaction," Vision, , vol. 16(4), pages 297-313, December.
    • Handle: RePEc:sae:vision:v:16:y:2012:i:4:p:297-313
    DOI: 10.1177/0972262912460188
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