This study investigates the relationship between market orientation and business performance, and examines how employee satisfaction, service quality, and customer satisfaction play a mediating role between market orientation and business performance....
This study investigates the relationship between market orientation and business performance, and examines how employee satisfaction, service quality, and customer satisfaction play a mediating role between market orientation and business performance. In addition, this study investigates whether a company`s market orientation efforts improve not only its business performance but also its customer loyalty. For these purposes the authors developed a structural model which consists of several variables. Data were collected from one hundred-fifteen hotels. Three employees and three customers of each hotel responded to the questionnaire. The data were analyzed with LISREL 8W. The results can be summarized as follows: First, the greater the market orientation, the greater the employee satisfaction. Second, the greater the market orientation, the greater the customer orientation. Third, the greater the market orientation, the greater the business performance. Fourth, the greater the employee satisfaction, the greater the service quality. Fifth, the greater the service quality, the greater the customer satisfaction. Sixth, the greater the service quality, the greater the customer loyalty. Seventh, the greater the customer satisfaction, the greater the customer loyalty. Finally, a positive relationship appeared to exist between customer satisfaction and business performance. However, the relationship was not statistically significant. At the end of the paper, theoretical contributions, managerial implications, limitations, and future research directions are discussed.