The Relationship Between Customer and Supplier Perceptions of the Manufacturers Market Orientation and Its Business Performance

Fred Langerak
Erasmus University 
Rotterdam

INTRODUCTION

Market orientation is a business culture that fundamentally establishes tenets of organisational behaviour with respect to the firms stakeholders (i.e. customers, suppliers and internal functions). These behaviours are posited to be prerequisites if the firm is to create superior products that respond to customer needs (Jaworski & Kohli 1993; Slater & Narver 1994). Moreover, Hunt & Morgan (1995) state that marketoriented firms are more likely to enjoy a position of sustainable competitive advantage and superior longrun business performance. In line with this reasoning researchers have pursued an understanding of the link between market orientation and business performance, investigating a direct link (e.g. Narver & Slater 1990; Ruekert 1992), a moderated relationship (e.g. Hart & Diamantopolous 1993; Slater & Narver 1994; Greenley 1995; Pelham 1997), and the roles of market orientations antecedents (Jaworski & Kohli 1993). These studies have, in general, demonstrated that marketoriented behaviours have, depending upon environmental conditions and firm factors, positive effects on business performance (Narver & Slater 1998).