Effect of Market Orientation Practices on Manufacturing Firm’s Performance: Study on Firms Operating in Ethiopian Industrial Parks
DOI:
https://doi.org/10.20372/star.v13i1.02Keywords:
Market Orientation, Customer Orientation, Inter-Functional Coordination, Firm’s Performance.Abstract
The study examined the impact of market orientation on company performance in Ethiopian industrial parks. Using a pragmatic perspective and mixed-methods research strategy, the study used an explanatory research design to explain the influence of the predictor on the response variable. The study involved 382 senior managers selected from workers in specific industrial parks, who were provided with questionnaires to fill out after voicing their concerns at work.Confirmatory factor analysis (CFA) was used to validate and purify the data collection scales. Furthermore, a structural equation model was employed to validate the idea put forward in the study. The results of the study demonstrated that a company's financial performance (β=0.185, p=0.000) and marketing performance (β=0.148, p=0.000) were positively and significantly affected by customer orientation. A manufacturing firm's marketing performance was also noteworthy impacted by competitor orientation (β = 0.101, p = 0.025). But there was no significant relationship between competitor orientation and financial performance (β = 0.066, p = 0.167). The study reveals that inter-functional coordination significantly impacts financial and marketing performance. To enhance business operations, companies should focus on client value, address their needs, use proactive market data, understand competitor moves, and integrate organizational functions with stakeholders' needs.
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Accepted 2024-03-21
Published 2024-03-30
