Market orientation and performance: Objective and subjective empirical evidence from UK companies

The link between market orientation and performance has been claimed largel y on the basis of the analysis of subjective measures of performance. Conse quently, the aim of this study is to examine the links between market orien tation and objectively measured financial performance. The paper begins wit h a brief examination of the definition and components of market orientatio n. Thereafter, extant research into the consequences of developing market o rientation is reviewed critically, leading to the development of a number o f research hypotheses. After detailing the research design and methodology adopted in this study, the findings of a survey of UK industry are presente d. Briefly, the results indicate that when subjective measures of performan ce are adopted, market orientation is associated with company performance i n certain environmental conditions. However, when objective measures of per formance are adopted, we see a narrower range of environmental conditions w here market orientation is positively associated with performance. The pape r concludes with a series of implications for both theorists and practition ers.