This thesis studies the business performance of firms in the food and beverage industry in Sri Lanka by using the market orientation theoretical framework to explain why some firms are more successful than others. It also investigates how firms become more market-oriented and whether there is a significant relationship between market orientation and business performance.
Data was collected through a survey using a self-administered questionnaire. A total of 160 questionnaires were sent to top and middle level managers employed in 21 food and beverage companies operating in Sri Lanka. 120 questionnaires were returned, all of which were usable. In a next step, the questionnaires were coded into SPSS version 21 for Pearson Correlation Analysis and Multiple Regression Analysis.
The results from this study indicate that market orientation has a positive impact on business performance of organizations operating in the food and beverage industry in Sri Lanka. Moreover, the results reveal that customer orientation has a positive significant impact on business performance. Also, results suggest that the impact of competitor orientation on business performance is positive and significant. Results suggest that inter-functional coordination has a negative significant impact on business performance of organizations operating in the food and beverage industry in Sri Lanka.
The results of this study suggest that firms operating in the food and beverage industry should be focused on approaches of customer orientation, competitor orientation and inter-functional coordination activities of organizations in order to be more successful in the prevailing business environment and to achieve high business performance.
Table of Contents
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.1.1 Market Orientation and Business Performance
1.1.2 Modern Aspects of Market Orientation
1.1.3 Market Orientation in the Food and Beverage Industry
1.2 Research Problem
1.3 Research Questions
1.4 Objectives of the Study
1.5 Significance of Study
1.6 Limitations of the Study
1.7 Chapter Organization
CHAPTER TWO: LITERATURE REVIEW
2.1 Definitions of Market Orientation and Business Pefrormance
2.1.1 Market Orientation
2.1.2 Business Performance
2.1.3 The Relationship between Market Orientation & Business Performance
2.2 The History of Market Orientation
2.3 Kohli's and Jaworski's View on Market Orientation
2.3.1 Antecedents of Market Orientation
2.3.2 Consequences of Market Orientation
2.4 Narver’s and Slater’s View of Market Orientation
2.4.1 The Three Behavioral Dimensions
2.4.2 Long-term Focus and Performance
2.5 Similarities & Differences-Views of Narver & Slater vs. Kohli & Jaworski
2.6 Market Orientation: Moderators and Barriers
2.7 Implementing a Market Orientation
CHAPTER THREE: METHODOLOGY
3.1 Conceptualization and Operationalization
3.1.1 Conceptual Framework
3.1.1.1 Key Components of the Model
3.1.2 Operationalization of Variables
3.1.2.1 Measures of Market Orientation
3.1.2.2 Measures of Business Performance
3.2 Research Approach
3.3 Research Design
3.3.1 Research Site
3.3.2 Sources of Data
3.3.3 Population and Sampling
3.3.4 Method of Data Collection
3.3.5 The Reseach Instrument
3.3.6 Reliability and Validity
3.3.7 Methodological Limitations of the Study
3.3.8 Method of Data Analysis
3.4 Time Frame and Assess to Research Site
CHAPTER FOUR: ANALYSIS AND DISCUSSION
4.1 Data Preparation
4.2 Sample Profile of Respondents
4.3 Reliability and Validity Tests
4.3.1 Reliability
4.3.2 Validity
4.4 Descriptive Statistics
4.5 Statistical Assumptions Testing
4.5.1 Normality
4.5.2 Linearity
4.5.3 Multicollinearity
4.6 Correlation Analysis
4.7 Regression Analysis
4.7.1 Summary Statistic of Fitted Multiple Regression
CHAPTER FIVE: CONCLUSION
5.1 Conclusion and Reccomendations
5.2 Theoretical Implications
5.3 Managerial Implications
5.4 Limitations and Future Research Directions
Research Objectives & Core Themes
This thesis examines the impact of market orientation on the business performance of firms within the food and beverage industry in Sri Lanka, aiming to explain performance disparities through the theoretical framework of market orientation components.
- Analysis of the relationship between customer orientation and organizational business performance.
- Investigation of the influence of competitor orientation on performance metrics.
- Evaluation of the role of inter-functional coordination within the industry.
- Application of the behavioral approach to market orientation as proposed by Narver and Slater (1990).
- Assessment of performance via both financial and marketing indicators using a quantitative research design.
Excerpt from the Book
1.1.1 Market Orientation and Business Performance
“Market orientation is the organization culture that most effectively and efficiently creates the necessary behaviors for the creation of superior value for buyers and, thus, superior performance for the business” (Narver & Slater, 1990, p. 21). Furthermore, market orientation is identified as a competitive strategy that most efficiently generates the right kinds of behavior to create enhanced value for the consumer and assures better long term results for corporations. Also, market orientation is based on orientation towards the customer, orientation towards competitors and inter-functional coordination (Narver & Slater, 1990).
“Market orientation is the organization-wide generation of market intelligence, dissemination of the intelligence across departments and organization-wide responsiveness to it” (Kohli & Jaworsky, 1990, p. 54).
In order to become successful in the market, organizations should be monitoring changing customer wants and needs, competitors as well as affecting factors in the environment constantly. By recognizing, changing customer needs, approaches of competitors and affecting factors in the environment in advance; firms are able to develop strategies to encounter them and to become successful in the market (Narver & Slater, 1990).
Furthermore, several studies previously carried out have revealed that the relationship between market orientation and business performance is positive (Jaworski & Kohli, 1993; Narver & Slater, 1990). Also, Narver and Slater (1990) have revealed that market-oriented organizations are more successful than the less market-oriented organizations in terms of profitability. As well as, profitability of the firm has been recognized as a consequence of market orientation by researchers. Moreover, by being market-orientated, organizations are able to yield short-term as well as long-term benefits, such as huge short-term profits, a strong customer base, positive word of mouth and finally long term success of the organization.
Summary of Chapters
CHAPTER ONE: INTRODUCTION: This chapter introduces the background of the study regarding market orientation and business performance, states the research problem, research questions, objectives, and the overall organization of the thesis.
CHAPTER TWO: LITERATURE REVIEW: This chapter provides a comprehensive review of existing literature, discussing key definitions, the historical evolution of the concept, and prominent views from scholars like Kohli, Jaworski, Narver, and Slater.
CHAPTER THREE: METHODOLOGY: This chapter details the research design, including the conceptual framework, operationalization of variables, research approach, and the specific methods used for data collection and analysis.
CHAPTER FOUR: ANALYSIS AND DISCUSSION: This chapter presents the statistical analysis of the collected survey data, covering reliability and validity tests, descriptive statistics, and the results of correlation and regression analyses.
CHAPTER FIVE: CONCLUSION: This final chapter synthesizes the research findings, offers recommendations for practitioners, discusses theoretical and managerial implications, and identifies limitations alongside suggestions for future research.
Keywords
Market Orientation, Business Performance, Food and Beverage Industry, Sri Lanka, Customer Orientation, Competitor Orientation, Inter-functional Coordination, Quantitative Research, Multiple Regression Analysis, Marketing Intelligence, Organizational Culture, Strategic Management, Competitive Advantage, Profitability, Corporate Strategy
Frequently Asked Questions
What is the primary focus of this research?
This research primarily investigates how market orientation influences the business performance of organizations operating within the food and beverage industry in Sri Lanka.
Which specific themes are covered in this study?
The study covers themes such as customer orientation, competitor orientation, inter-functional coordination, the history of market orientation models, and the resulting impact on both financial and marketing performance metrics.
What is the main research question or goal?
The central goal is to determine the impact of market orientation on business performance in the Sri Lankan food and beverage sector, specifically exploring how its three core components (customer, competitor, and inter-functional) affect outcomes.
Which methodology was applied?
The study employed a cross-sectional research design, utilizing a self-administered electronic questionnaire sent to top and middle-level managers, followed by quantitative analysis using SPSS, including Pearson correlation and multiple regression.
What is addressed in the main part of the work?
The main part of the work covers the theoretical literature review of market orientation models, the methodological approach to the survey, and a detailed analysis and discussion of the empirical findings based on regression models.
What are the characterizing keywords of this work?
Key terms include Market Orientation, Business Performance, Food and Beverage Industry, Customer Orientation, Competitor Orientation, Inter-functional Coordination, and Strategic Management.
How is the relationship between market orientation and profitability explained?
The study highlights that market orientation is generally seen as a driver of superior performance, though the research results for the Sri Lankan food and beverage sector indicated positive impacts for customer and competitor orientation, but a negative significant impact for inter-functional coordination.
Why was the food and beverage industry in Sri Lanka selected?
This industry was chosen due to its significant contribution to the country's GDP and employment generation, and because it is highly dynamic and competitive, necessitating a strategic, market-oriented approach to survive and succeed.
What limitations does the author mention regarding the research?
The author notes that the research is limited to a single industry in Sri Lanka, relies on a cross-sectional design that cannot capture long-term processes, and is based solely on the perspective of company management.
What is the conclusion regarding inter-functional coordination in the selected industry?
Interestingly, the study concludes that in the specific context of the Sri Lankan food and beverage industry, inter-functional coordination showed a negative significant impact on business performance, which contrasts with common expectations in wider management literature.
- Citar trabajo
- Sanath Dasanayaka (Autor), 2016, The Impact of Market Orientation on Business Performance. A Study on the Food and Beverage Industry in Sri Lanka, Múnich, GRIN Verlag, https://www.grin.com/document/341567
