Market Orientation and Corporate Performance of Insurance Firms in Nigeria

Abstract

The study examined the effect of market orientation on corporate performance of insurance firms in Nigeria. The specific objectives of the study include determining how the various indices of market orientation like customer orientation, competitor orientation and inter functional coordination have influenced the corporate performance of these insurance firms. This study adopted a survey research methodology to examine the market orientation strategies of insurance firms in an attempt to attain their desired performance potential. The hypotheses in the study were tested using Spearman's Rank correlation coefficient (r), multiple regression and partial correlation analyses to determine the strength of relationships and effects of dependent/independent and moderating variables respectively. Fifty two respondents of the insurance firms indicated that there was a positive relationship between market orientation and corporate performance in the insurance industry. The result also revealed that age of the firm and market information system has weakly moderate the relationship. The research findings show that the insurance firms that engage in market orientation recorded progress while those that have not applied this strategy experience low performance. We conclude that only the combination of customer focus, competitor focus and inter functional coordination can drive performance. This study, therefore, is of the view that insurance firms operating in Nigeria should emphasize market orientation if their objectives are to enhance their corporate performance.

Linking SMEs Profitability to Brand Orientation and Market-Sensing Capability: A Service Sector Evidence

“…Thus, it becomes more imperative now than ever before for SMEs to possess some core strategic orientations and/or capabilities, particularly that of brand orientation and market-sensing capability in order to remain financially profitable. Recall, that profitability is a measure of value to show if a company is doing well or not (Ogbonna and Ogwo, 2013). In line with extant literature (c.f.…”

Value-creating mechanisms within the market orientation–performance relationship: a meta-analysis

“…For our purposes, customer performance was assessed with items tapping customer satisfaction and loyalty (e.g., Hooley et al, 2005); market performance was assessed with items tapping volume, sales growth, market share, and market share growth (e.g., Ogbonna and Ogwo, 2013); financial performance was assessed with items tapping profitability (e.g., Ogbonna and Ogwo, 2013). Regardless of level, organizational performance can be assessed both in absolute and relative terms as well as in objective and subjective terms.…”

Effect of Market Orientation on Organizational Performance (A Study of the Nigerian Banking Industry)

“…One percent (1%) movement in organizational performance is accounted by standardized coefficient of (β= 0.877). This is in line with the finding of Ibok and Eno (2014) who discovered a positive relationship between competitor orientation culture and organizational performance (β = 0.687, t= 2.920, P = 0.021), Olanipekun and Abiola-Falemu (2013) also showed in their findings, a positive relationship between competitor orientation culture and organizational performance (β = 0.591, t=1.139, P = 0.019); similarly, Adrianus (2008), Ogbonna and Ogwo (2013) and Jaiyeoba (2011) also discovered a positive relationship between competitor orientation and organizational performance with (β = 0.814, t= 3.540, P = 0.0499), (β = 0.699, t= 1.971, P = 0.002) and (β = 2.124, t= 1.299, P = 0.05) respectively. The significance value forInter-functional coordination culture is 0.042 from the coefficient table.…”

“…Accordingly, a rising number of studies have focused on the concept of "market orientation" with the plan of accepting the impact of organizational or corporate culture on market orientation and organizational performance (O'Cass & Viet. 2007;Ogbonna & Ogwo, 2013;Li & Justin, 2008;Morah, Wilson & Tzempelikos 2015).Market orientation fundamentally establishes tenets of organizational behavior with respect to a firm's business constituencies (customers, competitors, internal functions), which unambiguously make an effect on organizational performance. In line with this reasoning, researchers have trailed comprehensively a perceptive of the linkage between market orientation and performance, examining a direct causal link (Jakada, Musa Gambo, 2014;Njeru and Kiberia, 2016;Jaiyeoba, 2011), and even the roles of market orientation's antecedents (Ogbonna & Ogwo, 2013).…”

“…2007;Ogbonna & Ogwo, 2013;Li & Justin, 2008;Morah, Wilson & Tzempelikos 2015).Market orientation fundamentally establishes tenets of organizational behavior with respect to a firm's business constituencies (customers, competitors, internal functions), which unambiguously make an effect on organizational performance. In line with this reasoning, researchers have trailed comprehensively a perceptive of the linkage between market orientation and performance, examining a direct causal link (Jakada, Musa Gambo, 2014;Njeru and Kiberia, 2016;Jaiyeoba, 2011), and even the roles of market orientation's antecedents (Ogbonna & Ogwo, 2013). Conventional marketing wisdom holds that Market Orientation (MO) leads to better firm performance.…”