Market orientation and business economic performance: A mediated model
International Journal of Service Industry Management
ISSN: 0956-4233
Article publication date: 1 August 2003
Abstract
Previous studies have found that market orientation significantly predicts economic performance. The present study attempts to provide a necessarily partial model for how this impact takes place using innovation degree, innovation performance and customer loyalty as intermediate variables. The study targets the insurance industry in the European Union. The sample accounted for 22 percent of the companies and 17 percent of the insurance premiums in this market. The results suggest that the addition of these variables improves predictions of objective economic performance 52 percent over what is explained by market orientation alone. Furthermore, the study found that the effects of market orientation on economic performance are completely channeled (mediated) through these variables, particularly through innovation degree and innovation performance. Based on the results the paper provide guidelines for improving the market share, premium growth and profitability of European Union insurance firms.
Keywords
Citation
Maydeu‐Olivares, A. and Lado, N. (2003), "Market orientation and business economic performance: A mediated model", International Journal of Service Industry Management, Vol. 14 No. 3, pp. 284-309. https://doi.org/10.1108/09564230310478837
Publisher
:MCB UP Ltd
Copyright © 2003, MCB UP Limited