THE EFFECT OF MARKET ORIENTATION ON FIRM PERFORMANCE: A STUDY ON THE PARTICIPATION BANKS ACTING IN TURKEY

In this study the effect of market orientation on the firm performance is investigated. Market orientation practices are related with determining and applying the strategies that will meet the expectations and needs of customers as soon as possible and these strategies being adopted by all employees in an organization while performing daily activities. In this way, it is aimed to determine the activities of organization for the purpose of meeting the demands and needs of customers at hand faster than the opponents with the help of market orientation strategies. In this context the effects of customer orientation, competitor orientation, and interdepartmental coordination which are sub dimensions of market orientation, on firm performance together with innovation performance, financial performance, and non-financial performance as its sub dimensions are analyzed. The study was conducted on participation banks operating in Turkey. The data collected by questionnaires were analyzed with the use of various analysis methods such as factor, reliability and regression analysis. The results of the study suggested that there is a significant positive effect of market orientation on the firm performance