Relationship between Market Orientation and Organizational Performance: Moderating Role of Environmental Turbulence

This research attempts to examine moderating role of environmental turbulence in the relationship between market orientation and organizational performance. In this study, market orientation is measured with three variables, that is customer orientation, competitor orientation and interfunctional coordination. While, the organizational performance will be examined through financial performance and market performance. For the context of environmental turbulence, it is determined through market environment, technological environment as well as competitive environment. The total number of 3 hypotheses were constructed and observed the situation in SMEs located at Kuala Lumpur and Selangor. The data would gathered from the employees who are working in the SMEs with a questionnaire in 7-point Likert scale. Significantly, the results showed that customer orientation has a significant impact on market performance and financial performance. However, the moderating role of environmental turbulence has no significant effect on the market orientation- performance. Therefore, the findings are supported with the theory of market- oriented practices on organizational performance