Market Orientation, Marketing Practices, Firm Characteristics, External Environment and Performance of Tour Firms in Kenya

Abstract

The study objectives were to assess the relationship between market orientation and performance; examine the influence of firm characteristics on performance; assess the influence of external environmental factors on performance and establish the moderating effect of external environmental factors on the relationship between market orientation and performance. The study also sought to establish the moderating effect of firm characteristics on the relationship between market orientation and marketing practices;assess the mediating effect of marketing practices on the relationship between market orientation and performance and finally, establish the joint effect of market orientation, marketing practices, firm characteristics, external environmental factors on performance. The pertinent hypotheses were derived from the objectives. The study population comprised 104 tour firms. A descriptive cross-sectional survey was used. Primary data were collected using semi-structured questionnaires. Data were analyzed using descriptive statistics, inferential statistics and regression analysis. The results of the study revealed that market orientation influences performance. The relevant results also showed that the external environmental factors directly influence performance and also moderate the relationship between market orientation and performance. In addition, the results revealed that the marketing practices partially mediate the relationship between market orientation and performance. The results showed that firm characteristics do not influence firm performance nor moderate the relationship between market orientation and marketing practices. Finally, the joint effect of market orientation, marketing practices, firm characteristics and external environmental factors was greater than the individual effects of the independent, intervening and moderating variables on performance. The study has made contribution to theory, policy and practice in relation to marketing in general and market orientation specifically. The study offered further clarification into the relationship between market orientation, marketing practices, firm characteristics, external environmental factors and performance. The research was not without limitations. The selection of the study variables was not exhaustive. The use of subjective performance measures, a relatively small population, use of a descriptive cross-sectional research design and single key-informant approach, testing of market orientation as a single concept put constraints on the generazability of the results. Future research should seek to address these limitations by inclusion of the additional factors, use of a longitudinal research design, objective performance measures, multiple informant approach and testing of market orientation as a configuration concept. Replication of the study and examining the relationship between market orientation and other strategic business orientations, marketing and competitive strategies could serve as a useful reference for future research