The link between market orientation and performance in the Australian public sector

Abstract

Marketing academics and practitioners assume a direct link between market orientation and performance and argue that this applies to both business and non-business organisations. While this aspect has been studied in the business sector, this paper discusses the concepts of market orientation and performance and investigates this relationship in the Australian public sector. The conceptualization of market orientation used is that by Jaworski and Kohli (1993) on which basis MARKOR was developed. This instrument together with an instrument to measure the perceptions of performance of senior managers in the Australian public sector are used to investigate the hypothesized link. The findings confirm a positive relationship between market orientation and performance. The size and type of public sector organisation involved are also found to affect the levels of market orientation together with its components and performance. From the findings, implication are drawn and directions for future research discussed.