MARKET ORIENTATION AND FIRM PERFORMANCE OF MANUFACTURING SECTOR IN MALAYSIA: THE MODERATION OF INNOVATION

Abstract

Purpose - This study aims to explore the understanding of market orientation of manufacturers in
manufacturing sectors with firm performance in the role of accessing the innovation as moderating
construct.
Design/methodology/approach - The research framework of market orientation was developed
through MKTOR and MARKOR measurement. The data was collected from a sample of 321
manufacturers in Malaysia using questionnaire on six-point Likert scale. By using quantitative
method, the collected data was examined using multiple regression analysis.
Findings The impact of market orientation on company results has been confirmed by the moderating
position of innovation. The cultural component significantly affects firm performance, however not
the behavioral component as a whole. Out of 11 hypotheses, four were not supported and the rest are
supported which signifies the significant impact of market orientation and innovation in this study.
Research implications – The results of this study will benefit the manufacturers by providing a
comprehensive analysis and framework on the effect of market orientation practices implementation
towards manufacturing performance.
Originality/value This study was combining and analyzing both components of market orientation;
behavioral and cultural holistically in a study, which rarely done by previous scholars.