The Impact of Environmental Uncertainty on the Market Orientation - Performance Relationship: A Study of the Hospital Industry ?

In the past few years, market orientation has emerged as a major construct in the marketing management literature. Several studies have shown that market orientation is significantly related to organizational performance in a variety of contexts, and this relationship is therefore well established in the literature. However, several researchers have suggested that environmental factors could moderate this relationship. In this study we examine one such environmental factor, namely "environmental uncertainty." Environmental uncertainty is an important factor in both the marketing and management literature. It would be useful to know how an increase in environmental uncertainty influences the market orientation - performance relationship. We examine this issue in the hospital industry using a sample of hospitals in a five-state region of the United States. Results show that environmental uncertainty does have a significant influence on the market orientation - performance relationship, although it does not appear to have a major impact on the two constructs separately. Implications of the findings for future research as well as for hospitals are outlined.

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