The impact of market orientation levels on business performance results: The case of the service industry in Russia

Worldwide Hospitality and Tourism Themes. 2016. Vol. 8. No. 3. P. 296–309.

Казаков С. П.

Purpose

 

The purpose of this paper is to study the impact of market orientation on a companyµs business performance in a service industry using one of the emerging markets as a research setting.

Design/methodology/approach

 

The examination of two recognized MKTOR and MARCOR market orientation concepts in this paper led to the development of a market orientation model in a service industry that considers the local specifics of doing business. The model was tested in a study of 133 businesses that operate in a Russian service industry. The data analysis was completed to investigate and measure the impact of the market orientation level on a company’s business performance.

Findings

 

The data analysis following the field study determines that market orientation delivers a positive impact on the company’s overall business performance.

Practical implications

 

Inter-functional coordination should receive broad attention from company management, as this market orientation element is the most vital for business performance – especially in service industries. Accompanying model elements also provide leverage to business performance that should not be overlooked. Synchronized utilization of the market orientation model elements has a very positive impact on the company’s business.

Originality/value

 

This research paper contributes to an array of publications dedicated to market orientation in one of the most multifaceted emerging markets, the Russian Federation. It is also the first time that the market orientation concept has been applied by service industry organizations in Russia.

Purpose  

The purpose of this paper is to study the impact of market orientation on a companyµs business performance in a service industry using one of the emerging markets as a research setting.

Design/methodology/approach  

The examination of two recognized MKTOR and MARCOR market orientation concepts in this paper led to the development of a market orientation model in a service industry that considers the local specifics of doing business. The model was tested in a study of 133 businesses that operate in a Russian service industry. The data analysis was completed to investigate and measure the impact of the market orientation level on a company’s business performance.

Findings  

The data analysis following the field study determines that market orientation delivers a positive impact on the company’s overall business performance.

Practical implications  

Inter-functional coordination should receive broad attention from company management, as this market orientation element is the most vital for business performance – especially in service industries. Accompanying model elements also provide leverage to business performance that should not be overlooked. Synchronized utilization of the market orientation model elements has a very positive impact on the company’s business.

Originality/value  

This research paper contributes to an array of publications dedicated to market orientation in one of the most multifaceted emerging markets, the Russian Federation. It is also the first time that the market orientation concept has been applied by service industry organizations in Russia.

 

Ключевые слова: emerging markets, market orientation, service industry, business performance