The Relationship between Market Orientation and Firm Performance

Evans Ojiambo Onditi


This independent conceptual study paper sought to examine the nature of the relationship between market orientation and firm performance.  The study was done through a review of literature which indicated that the market orientation construct forms the foundation of marketing. The cultural and behavioral dimensions of market orientation have been discussed, including the antecedents, moderators and barriers to market orientation as well as the consequences of market orientation. The theoretical perspectives were based on the Resource Based Review, the Market Based view and the Contingency theory. The empirical studies reviewed provided findings that indicate that market orientation influences firm performance. The conclision made is that market orientation predicts firm performance and that as an antecedent to market orientation, the top management of a firm and the staff must be on the Frontline in supporting the market orientation. The consequences of a market orientation will be felt by customers, in the firms’ innovativeness, as well as the employees of the firm. The conclusion has led to a suggestion to conduct a comprehensive study on the relationship between market orientation, firm characteristics, competitive strategy and firm performance in the context of a specific industry in order to fill the knowledge gaps identified in the study.

Keywords: Market orientation and Firm performance

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ISSN (Paper)2222-1905 ISSN (Online)2222-2839

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