Impact of Marketing Orientation on Firm Performance: The Mediation Analysis of Customer Value in the Garment Industry, in case of Nifas-Silk Lafto sub city, Addis Ababa.
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Date
2024-06-02
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A.A.U
Abstract
An essential component of organizational culture, marketing orientation places a strong
emphasis on providing customers with higher value through ongoing cross-functional learning
and coordination efforts. More specifically, market orientation has evolved as critical concept
in business strategy, focusing on understanding and meeting customer needs better that
competitors. However there has been enough research endeavor on the area. This study
exhibits the role of Market Orientation on firm Performance, focusing on garment industry in
Addis Ababa. The primary goal of the study is to comprehend how customer value functions as
a mediating factor in the relationship between marketing orientation and Organizational
performance. The study employs a descriptive and explanatory research design, utilizing both
qualitative and quantitative approaches. The target population comprises garment
manufacturing firms in the district, with data collected through standardized questionnaires
and interview. That analysis revealed a significant positive relationship between Market
Orientation and Organizational Performance. Specifically, inter-functional coordination and
long-term development emerged as strong predictors of performance. However, customer
orientation and competitor orientation showed weak impacts. The mediation analysis indicated
that customer value partially mediates the relationship between market orientation and
performance, suggesting that while market orientation directly influence performance, as its
effect is enhanced through customer value. Implications, limitations, and future research
directions are suggested.