Market Orientation and Organizational Performance

The Moderating Role of Service Quality

Bibliographic Data

ID3380922
AuthorsChee-Hua Chin (0000-0001-7807-0496, Universiti Malaysia Sarawak), May-Chiun Lo, May Chiun Lo (0000-0003-0767-7834, Universiti Malaysia Sarawak), T Ramayah (0000-0003-3361-0465, Universiti Sains Malaysia)
Year2013
Volume3
Issue4
Pages3/4/2158244013512664
Publication date2013-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/2158244013512664
OpenAlexW2127158977
LanguageEN
Citations received5
References cited101

Orientation plays a vital role for organizations to compete to create sustainable competitive advantage. The objective of this study is to examine the relationship between market orientation (MO) and organizational performance (OP) with service quality (SQ) as a moderator in the context of the hotel industry in Malaysia. MO and OP were conceptualized as three- and two-dimensional constructs, respectively, whereas SQ, which consists of two-dimensional constructs, namely, technical quality and functional quality, was used as a moderator. Data were gathered through a survey using a structured questionnaire with a sample of 187 executive-level employees employed in hotels rated three stars and above in Malaysia. SmartPLS 2.0 (M3) with path modeling and bootstrapping was used to examine the standard error of the estimate and t-values. The findings suggest that only competitor orientation dimension of MO was significantly related to OP, whereas customer orientation and inter-functional coordination were not related. Interestingly, SQ was found to have moderated the relationship between MO and performance of the hotels in Malaysia. SQ exists to fill in the gap between customers' expectations and their perception of the service providers' performance that further creates differentiation and competitive advantage, which enhance MO practices and ultimately lead to improvements in the firm's performance. Implications of the findings, potential limitations of the study, and directions for future research are highlighted

Business · Competitive advantage · Market Orientation · Moderation · Service quality · Customer Service Quality and Loyalty · Organizational Leadership and Management Strategies · Psychology · Social Psychology · Technology Adoption and User Behaviour · Marketing