The Effect Of Market Orientation On Organizational Performance

In the era with the rapid development in science and increasingly fierce competition in international market, how to improve organizational performance becomes a common concern of managers. As a corporate culture, market-orientation can promote companies to take some actions to create higher customer value, and thus companies can achieve superior organizational performance. Internal and external scholars always ignore the three dimensions of market orientation when they study the organizational performance. Besides, they seldom distinguish the size of businesses. Therefore, it is very valuable to do the comparative study of the relationship between market orientation and organizational performance of different enterprise sizes.Based on generalizing extensive literatures, this study proposes the following hypotheses, the three dimensions of market orientation- customer orientation, competitor orientation, inter-functional coordination have significant positive effect on new product performance and business performance, the market orientation of different sizes all have significant positive effect on new product performance and business performance. After analyzing 462 valid questionnaires, we draw the following conclusions:Firstly, the effects of the three dimensions of market orientation on new product performance and business performance are different. These two dimensions, customer orientation and competitor orientation, have significant positive effects on new product performance and business performance, but the effect of inter-functional coordination is not significant.Secondly, for small and medium enterprises, customer orientation has significant positive effect on new product performance and business performance, competitor orientation has significant positive effect on new product performance while not on business performance, and the effect of inter-functional coordination is not significant to both of them. For large enterprises, the positive effect of customer orientation on new product performance is greater than the positive effect on business performance, competitor orientation has significant positive effect on business performance while not on new product performance, and inter-functional coordination has a significant positive effect on new product performance, but a not obvious positive effect on business performance.Thirdly, although the positive effects of customer orientation with different enterprise sizes are all significant, but the degree is not the same. The customer orientation of SMEs has a bigger positive effect on business performance than large enterprises, while it is just opposite on new product performance.