THE EFFECT OF MARKET ORIENTATION ON FINANCIAL VS. NON-FINANCIAL INDICATORS OF BUSINESS PERFORMANCE – COMPARISON OF MARKOR AND MKTOR APPROACH

DOI: https://doi.org/10.31410/ITEMA.2018.572
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2nd International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2018 – Graz, Austria, November 8, 2018, CONFERENCE PROCEEDINGS published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-13-4

The paper deals with the issue of relationship between market orientation and business performance. Market orientation is considered as an established concept of marketing theory whose implementation within the business is regarded as the key to achieving competitive advantage and prosperity. The claim that market orientation has a positive impact on business performance is well documented in scholarly research. Although a few studies report a negative or non-significant relationship, predominant evidence shows a positive relationship between market orientation and business performance. Both concepts occupy the interest of scientists for decades and there exist studies worldwide presenting and confirming their dependences. Since in Slovakia there was research gap in this field we decided to examine this issue on the representative sample of 230 companies operating in Slovakia with various sizes (small, middle-sized, large) from different industries and regions. We applied established MKTOR and MARKOR methodology. The main aim was to examine relationship between market orientation measured via two different methods (MARKOR vs. MKTOR) and business performance measured through financial and non-financial indicators and to compare their results. In our hypothesis we assumed that market orientation has higher impact on non-financial indicators than on financial indicators of business performance in case of both methods. Our results confirmed this assumption and we found out that there is middle-strong positive correlation in the linkage to non-financial indicators and slightly lower correlation in the linkage to financial indicators. These findings may be used for managerial implications and successful implementation of marketing management concept into the practice of the businesses.
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