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Effect of the business environment on market orientation and performance in an emerging country

Author

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  • József Berács

    (Department of Marketing Corvinus University of Budapest and University of Pannonia)

  • Gábor Nagy

    (Department of Marketing Corvinus University of Budapest)

Abstract

In the paper the relationship between market orientation and performance, and the effect of the business environment on these two factors in an emerging economy, in Hungary, was investigated. In a research conducted at 572 firms we found that both market orientation and the business environment have an effect on business performance, albeit in a different manner. The three components of the market orientation construct (customer orientation, competitor orientation, interfunctional coordination) have a positive effect on performance. Contrary to that, environmental variables (technological turbulence, market turbulence, competitive intensity, buyer power etc.) proved to have a signficant impact only on the finance-based performance measures. The results provide unambiguous evidence that the environment has a strong effect on market orientation, indicating that the market orientation scale developed by Narver and Slater is a proper tool to describe the transitional processes in an emerging economy characterized by high turbulence.

Suggested Citation

  • József Berács & Gábor Nagy, 2010. "Effect of the business environment on market orientation and performance in an emerging country," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 22(2), pages 243-254.
    • Handle: RePEc:zag:market:v:22:y:2010:i:2:p:243-254
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    References listed on IDEAS

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    1. Howard R. Vane & Chris Mulhearn, 2005. "The Nobel Memorial Laureates in Economics," Books, Edward Elgar Publishing, number 3253.
    2. Rose, Gregory M. & Shoham, Aviv, 2002. "Export performance and market orientation: establishing an empirical link," Journal of Business Research, Elsevier, vol. 55(3), pages 217-225, March.
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    Cited by:

    1. Bruno Grbac & Ivana First, 2011. "Dynamics of market orientation in Croatian economy," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 29(2), pages 373-394.

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