The Importance Of Market Orientation

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Market Orientation is related to the organisation’s business approach that focuses on identifying and meeting the needs and wants of customers through varuious factors such as customer orientation, competitor orientation, interfunctional orientation and responsiveness in order to achieve business success and long-term profitability (As shown in the study of Kohli and Jaworski 1990; Naver and Slater, 1990). Usually larger firms are known to have a better advantageous position than SMEs due to their barganing power with their suppliers and customers, a more established brand name and more experience within the market that they would have reaped over the years (Fiegenbaum and Karnani, 1991). On the other hand, various studies give a detailed…show more content…
Such structures hinder and obstruct the stimulation of Market Orientation within any organisation. By nature, SMEs tend to have a more relaxed structure and less formal procedures in comparison to their larger counterparts which may opt more rigid structures and procedures over the years (Coviello et al. 2000). Such structures hinder customer contact with their customers whilst SMEs tend to emphasize more on having a customer-based performance measure…show more content…
Olavarrieta and Friedmann (2008) went to describe organizational learning as an evolutionary approach to an effective business strategy where organizations don't just depend on their existing resources, but constantly develop through learning, discovery, and adaptation. Hurley and Hult (1998) argue that Market Focus helps firms generate new ideas and improve their response time to what the markets are demanding. It is only natural that Market Orientation increases the more SMEs connect with their customers and also strengthen their market focus. Entrepreneurial Proclivity (Matsuno et al., 2002) is another important factor that describes the risk taking, in being proactive and innovativeness of the entreprenuer itself. The more the entrepreneur engages in them the more it facilitate’s the organisation’s willingness to emerge itself into learning about the present market activities and helps the firm take a more calculated risk and avoid uncertainity and ambiguity. Last but not least, quality context refers to an organisational culture where it is fundumentally essential in producing an optimum quality product or service. ii. Mediators of the MO-Performance

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