The Effect of a Market Orientation on Business Performance : A Study of Small-Sized Service Retailers Using Markor Scale

Potential influences of market orientation (MARKOR) on small-sized service retailer performance are investigated. Data were obtained through interviews with 153 business owners of SMEs in Maryland, New York, and Pennsylvania. Questions were asked that were meant to measure an organization's marketing orientation. Also, the Kohli, Jaworski, and Kumar market-orientation scale was used to specify the dimensions of a market-oriented organization. The scale provided a good measure of market orientation in this setting. The findings show a significant connection between market orientation and small-sized service retailer performance. Managerial implications are also discussed. Conclusions indicate that the overall market orientation scale is a valid and reliable measure of market orientation in small-sized service retailers. Also demonstrated was the universal applicability of MARKOR scale in different settings. The analyses done in the study indicate that intelligence generation, intelligence dissemination, and responsiveness are three dimensions that influence market orientation of small-sized service retailers, which in turn impacts the organization's performance measured by multiple financial variables. Empirical evidence also suggests that better performance will be achieved by the market-oriented organization. Small-sized service retailer managers should emphasize customer/client understanding and satisfaction as well as competitor orientation. (JSD)