Market orientation and its effects on the perceived business performance of Our Lady of Fatima University

Market orientation has been linked to business performance in previous studies. After conducting a survey of 300 respondents from the employees of the school and using correlation and step-wise general regression, the results indicated that market orientation, consisting of intelligence generation, dissemination, response design, and implementation, has significant positive influence on market share as well as a positive yet insignificant relationship with profitability. It was also determined that interdepartmental conflict and connectedness, formalization, reward systems, and student orientation influence the degree of market orientation variables. Senior management emphasis only affects intelligence generation, while competitor orientation does not affect intelligence dissemination. Insignificant variables are centralization and senior management risk aversion. The recommendation for the university is for them to improve their market orientation so that their market share will increase, providing more revenue. This can be done by viewing conflict in a positive light for quicker resolutions to problems and taking more risks to generate more market intelligence. For future studies, a longitudinal study should be done to capture the lag effect of market orientation on profitability