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

József Berács () and Gábor Nagy
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József Berács: Department of Marketing Corvinus University of Budapest and University of Pannonia
Gábor Nagy: Department of Marketing Corvinus University of Budapest

Tržište/Market, 2010, vol. 22, issue 2, 243-254

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 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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