Market Orientation -Transforming Trade and Firm Performance

This paper examines the role of market orientation on trade and firm performance. Recent studies conducted in the United States and Europe have shown significant evidence of the relationship between market orientation and business performance. Kohli and Jaworski’s empirical work has provided the critical first steps in the examination of market orientation theory. The overall aim of the research reported in this paper was to build on this limited body of literature and provide a conceptual model. Market orientation focuses on a business culture producing superior value to customers and outstanding performance for the firm leading to growth and benefits for trade. The findings of the study suggest market orientation is positively related to business performance. Secondly, firm performance can dramatically improve output, which can result in expanded markets and trade. The implications of this study for future research include the findings that market orientation is a reliable construct which has now become a necessary strategic direction for change in all organization and institutions.