The Effect of a Market Orientation on Business Performance: A Study of Small-Sized Service Retailers Using MARKOR Scale

Ali Kara · John E. Spillan · Oscar W. DeShields

390 citations0/0 files storedJournal of Small Business Management

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Innovation and Knowledge Management Marketing and Advertising Strategies Quality and Supply Management

Abstract

Conventional marketing wisdom holds that a market orientation provides a company with a better understanding of its customers, competitors, and environment, which subsequently leads to superior firm performance. While researchers have explored the relationship between market orientation and business performance in different organizations, such studies in small-sized service retailers are scarce. This study investigates potential influences of market orientation on small-sized service retailer performance. Data for this study were collected through personal interviews, and Kohli, Jaworski, and Kumar's market orientation scale was used to specify the dimensions of a market-oriented organization. Results indicated that Kohli, Jaworski, and Kumar's market orientation scale provided a good measure of market orientation in this setting. Also, the results of analyses indicated a significant link between market orientation and small-sized service retailer performance. The managerial implications are discussed.

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1979A Paradigm for Developing Better Measures of Marketing Constructs 1987Developing Buyer-Seller Relationships 1990The Effect of a Market Orientation on Business Profitability 1990Market Orientation: The Construct, Research Propositions, and Managerial Implications 1993Market Orientation: Antecedents and Consequences 1994The Capabilities of Market-Driven Organizations 1995Market Orientation and the Learning Organization 1993Market Orientation: Antecedents and Consequences

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