The Effect Of Market Orientation On Business Performance: A Case Of Commercial Bank Of Ethiopia
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Date
2017-05-06
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Addis Ababa University
Abstract
The growing number of academic studies on market orientation and the mixed findings they report complicate efforts among managers and academics to identify the antecedents and outcomes of this construct. In view of that, This study examined the effect of market orientation on business performance a case study on commercial bank of Ethiopia has showed that market orientation is a critical component of business performance and offers evidence of the effectiveness of the implementation of the marketing concept by using MARKOR scale of Kohli, Jaworski and Kumar (1993) for independent variable market orientation with its components intelligence generation, intelligence dissemination and responsiveness and the 11 items scale for dependent variable business performance(financial and non-financial) are adapted from Ali Kara et al. (2005). The data used for this study was collected using structured questionnaire from CBE 249 top manager, customer service managers and marketers who are selected by non-probability convenience sampling method and this study used explanatory research design with Quantitative research approach which were appropriate for this kind of study. To answer the basic research questions descriptive, correlation and regression analyses were computed. From correlation analysis it is explained that intelligence generation, intelligence dissemination and responsiveness correlated strongly among themselves and with business performance measures. The overall market orientation analyses findings shows that the extent to which market orientation being applied by CBE is good, particularly the highest score belongs to intelligence dissemination which implies that CBE is doing better on communication of information with its customers and among employees, and it shows that the level of market orientation is good moreover CBE managers are aware of and doing a good job in exercising and implementing the concept market orientation and its effect on the overall business performance. The results obtained from this study should be helpful for CBE top managers to develop the appropriate market-oriented strategy in order to achieve a better performance
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business performance, strategy