Delineating the effect of market orientation on services performance: a component-wise approach

Abstract

This article attempts to delve deeper into the relationship between the three core components of market orientation and service performance, settle literature inconsistencies and provide insights into the role of each component. A conceptual model is presented in which a synergetic mechanism among the market orientation components and their link to service performance is proposed. The model is tested in the context of travel and tourism services by gathering data from Greece and Lithuania and using structural equation modelling. The results indicate that customer orientation is the only direct determinant of service performance, whereas competitor orientation and inter-functional coordination exhibit indirect effects through customer orientation. The study provides new directions to market orientation research and assists marketing managers of services firms in gaining a better understanding of the concept and its implementation for accomplishing optimal performance results.

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