Effects of Transition Economy on the Market Orientation-Business Performance Link: The Empirical Evidence from Indian Industrial Firms

Abstract The purpose of the study was to ascertain the extent to which Indian industrial firms have adopted the concept of market orientation as a result of economic reform. Further, the study examines the link between the market orientation and business performance. The potential effects of competitive intensityand market dynamismwere also examined. Our findings suggested that there was a positive change in the market orientationand that the market orientationwas significantly and positively related to return on investment and customer retention.Further analysis indicated that for a high level of competitive intensityand a low level of market dynamism, the relationship between the market orientation and performance was stronger. Finally, the implications of the findings, the directions for future research, and the limitations of the study are discussed.

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