Abstract
Marketing academicians and practitioners have been observing for more than three decades that business performance is affected by market orientation, yet to date there has been no valid measure of a market orientation and hence no systematic analysis of its effect on a business's performance. The authors report the development of a valid measure of market orientation and analyze its effect on a business's profitability. Using a sample of 140 business units consisting of commodity products businesses and noncommodity businesses, they find a substantial positive effect of a market orientation on the profitability of both types of businesses.
Keywords
Profitability indexMarket orientationBusinessMeasure (data warehouse)Orientation (vector space)Sample (material)MarketingCommodityIndustrial organizationFinanceMathematicsComputer science
Affiliated Institutions
Related Publications
Growth strategies for service firms
Abstract Two characteristics of services—intangibility of the offering and simultaneity of production and consumption—have important implications for strategic planning. Four of...
Executive Motivations, Earnings, and Consequent Equity Performance
In this paper the financial incentives of executives are analyzed, theoretically and econometrically, with particular emphasis on the relationship between executive motivations ...
What Firms Do? Coordination, Identity, and Learning
Firms are organizations that represent social knowledge of coordination and learning. But why should their boundaries demarcate quantitative shifts in the knowledge and capabili...
The Customer Relationship Management Process: Its Measurement and Impact on Performance
An understanding of how to manage relationships with customers effectively has become an important topic for both academicians and practitioners in recent years. However, the ex...
A Model of Distributor Firm and Manufacturer Firm Working Partnerships
A model of distributor firm and manufacturer firm working partnerships is presented and is assessed empirically on a sample of distributor firms and a sample of manufacturer fir...
Publication Info
- Year
- 1990
- Type
- article
- Volume
- 54
- Issue
- 4
- Pages
- 20-35
- Citations
- 7777
- Access
- Closed
External Links
Social Impact
Altmetric
PlumX Metrics
Social media, news, blog, policy document mentions
Citation Metrics
7777
OpenAlex
Cite This
John C. Narver,
Stanley F. Slater
(1990).
The Effect of a Market Orientation on Business Profitability.
Journal of Marketing
, 54
(4)
, 20-35.
https://doi.org/10.1177/002224299005400403
Identifiers
- DOI
- 10.1177/002224299005400403