Research On Effect Mechanism Of Market Orientation On Company Performance

In resent years, research on market orientation has been a hot topic in marketing theory field along with the multiplication of customer needs, fierceness of competition and development of information technology. Market orientation which arrives from marketing concept is the implement of marketing concept, and it belongs to a kind of organization culture in nature. A significant body of research has proved that there is a positive relationship between market orientation and performance, and many researchers believe that company will get competitive advantage through market orientation. But few researchers have pursued how market orientation affected performance, that is mechanism of market orientation on performance. Innovation, organizational learning, customer loyalty and competitive advantage have been assumed as mediated variable.The paper puts forward model of innovation and customer loyalty as mediated variable, and empirically tests the model using data from companies of Sichuan Province. Results indicate that there is a significant positive relationship between market orientation and performance, but market orientation affects performance through innovation instead of affecting it directly. Additionally, market orientation is conducive to facilitating both innovation and customer loyalty. Company will pay more attention on customer needs, response quickly on customer complaint. Market orientation requires company make means to competitor, and department in company regular meeting. Front-line employees will get enough power to deal with thunderbolts. With development of market orientation, in one hand, company will provide product and service with higher quality, create more customer value, achieve customer satisfaction, and improve customer loyalty. In another hand, company will collect more information about technology, customer need, policy, and then improve innovation ability. It has been improved that innovation is propitious to promotion of performance.According to organizational culture theory, market orientation is divided to market-oriented spirit culture, market-oriented system culture, market-oriented behavior culture and market-oriented substance culture. The core value of market orientation is to satisfy customer need, and create more customer value. Regulation system will prompt market-oriented behavior, and market-oriented product will satisfy more customer need.At last, the paper analyzes the organizational obstacles, culture obstacles, and human obstacles during development of market orientation, and proposes strategies from views of human resource system, planning system, control systems.