Moderation Effects on the Market Orientation-Performance Connubial Relationship: a Developing World Perspective

Abstract Market orientation (MO) occupies the front burner in strategic marketing domain. To date, available empirical evidence on the universality and effect of MO on organisational performance continue to generate mixed,... [ view full abstract ]

Abstract

Market orientation (MO) occupies the front burner in strategic marketing domain. To date, available empirical evidence on the universality and effect of MO on organisational performance continue to generate mixed, conflicting, contradictory, inconsistent and at best inconclusive research findings. Thus, the study investigates the MO-objective performance measure relationship and the effects of moderation variables in Nigeria. A survey approach was used and the Narver and Slater's (1990) MKTOR scale was adapted to the Nigerian business environment and adopted for the study. Results show that contrary to prior research, MO has a direct relationship with profitability and market share. Amazingly, market turbulence does not moderate the relationship, competitive intensity was found to play a moderating role in the MO-profitability relations but no effect on MO-market share relations. Technological turbulence was found to negatively moderate the MO-profitability link but not for market share. It thus, suggests that the Nigerian business has some resemblance with advanced countries; this may be due largely to western influence in the country, which leads to changing customer lifestyle and business landscape.

Key words: Market orientation, objective performance, moderating variables, Nigeria.