Preliminary communication

Effect of the business environment on market orientation and performance in an emerging country

József Berács ; Department of Marketing Corvinus University of Budapest and University of Pannonia
Gábor Nagy ; Department of Marketing Corvinus University of Budapest, Hungary

Abstract

In the paper the relationship between market orientation and performance, and the effect of the business environment on these two factors in an emerging economy, in Hungary, was investigated. In a research conducted at 572 firms we found that both market orientation and the business environment have an effect on business performance, albeit in a different manner. The three components of the market orientation construct (customer orientation, competitor orientation, interfunctional coordination) have a positive effect on performance. Contrary to that, environmental variables (technological turbulence, market turbulence, competitive intensity, buyer power etc.) proved to have a signficant impact only on the finance-based performance measures. The results provide unambiguous evidence that the environment has a strong effect on market orientation, indicating that the market orientation scale developed by Narver and Slater is a proper tool to describe the transitional processes in an emerging economy characterized by high turbulence

Keywords

market orientation; business environment; emerging economy; business performance

Hrčak ID:

67451

URI

https://hrcak.srce.hr/67451

Publication date:

20.11.2010.

Article data in other languages: croatian

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