Market orientation and its effect on business performance : an empirical study of the metal industry in South Africa
Date
2018
Authors
Ntobongwana, Lungelo
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Abstract
Business performance is enhanced by organisations by adopting market orientation methodologies. Sustainable competitive advantage is what most organisations strive for so that they can outperform their competitors. Organisations operating in the same or similar industries gain sustainable competitive advantage, but that varies from one organisation to another.
The metal industry in South Africa is the point of focus of the current study. The aim is to experimentally study how business performance is affected by market orientation. The relationship between four constructs business performance, marketing capabilities, market orientation and sustainable competitive advantage were examined.
The population of the metal industry comprised of sixty three companies and this was used as a sample for the study. A total of forty seven (74.6% response rate) participants responded and data was analysed through the use of Structural Equation Modelling (Smart PLS). A structured questionnaire was used as a research instrument and an online survey was conducted for over a six week period.
Data analysis on the relationship between four constructs was performed using Structural Equation Modelling (SEM). Reliability, validity and path modelling was done using SEM (Smart PLS).
It was determined that market orientation has a positive and direct effect on business performance; however, the effect on business performance is less significant compared to the direct effect of marketing capabilities and sustainable competitive advantage. Of
the four constructs under study, sustainable competitive advantage was found to have the most significant effect on business performance.
Managers and business owners are encouraged to enhance marketing capabilities in order to improve business performance. Due to the fact that sustainable competitive advantage is attained by allocating internal business resources effectively, it can be used as an organisations differentiator from its competitors and therefore enhance business performance.
Description
MBA Thesis
Keywords
Industrial marketing -- South Africa. Organizational effectiveness -- South Africa. Metal trade -- South Africa. UCTD