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INFLUENCE OF MARKET ORIENTATION ON BUSINESS PERFORMANCE

CASE: CROATIAN MANUFACTURING COMPANIES

Željko Bunić, Faculty of Economics and Business Zagreb

University of Zagreb

Kennedy sqaure, Zagreb

CROATIA

Telephone : 00385 98 490-982

Email : zeljko.bunic@hespo.hr

Supervisor, Dr. Nataša Renko

Supervisor: n.renko@efzg.hr

16th EDAMBA Summer Academy

Soreze, France

July 2007

INFLUENCE OF MARKET ORIENTATION ON BUSINESS PERFORMANCE

Željko Bunić, Faculty of Economics and Business Zagreb

Abstract:

Market orientation (MO) concept, relationships between MO and business performance (BP) and environmental factors (EF) role is subject of thesis. Thesis accepts Jaworski and Kohli structural model, that on comprehensive way enhance framework of MO: antecedents, construct, consequences, moderators. In addition of original model, author propose conceptual framework that consider EF as antecedents of MO and alternatively as moderators of relationship between MO and BP. The new variable in model is five competitive forces intensity.

The methodology of framwork test involves quantitive research methods, validity and reliability of measure scales test and checking of variables. In order to test hypothesis use of multivariate regression analysis and moderated regression analysis is employeed.

Keywords: Market orientation, Business performance, Environmental factors, Five competitive forces

RESEARCH BACKGROUND

In order to improve business performance, companies worldwide rely on market orientation based on the classic marketing doctrine. According to the classic doctrine, satisfying customer’s needs and requirements is the basic path to the improvements of business performance. MO refers to the implementation of the marketing concept. Even though the marketing concept was introduced in 1960’s, the impact of MO on business performance and its effects were not the subjects of...