The Aptness of Market Orientation Practices on Contractors’ Business Performance: A Look at the Northern State of Malaysia

Abstract

Abstract-The concept of market orientation has received attention because of its conceptual and practical values. In general, market orientation focus on customer orientation, competitor orientation, and inter-functional coordination to achieve organizational success. Thus, it is assumed the practices of market orientation will lead the organization into market-driven and consequently lead to superior organizational performance. Failure to develop market orientation may adversely affect business performance. However, the context in which the concept is been applied need to be considered. This study examines the aptness of market orientation on business performance among project contractors in a northern state of Malaysia. The focus is on the level of market orientation practice by the contractors, relationship between market orientation and business performance, and the difference between contractor's demographic factors toward market orientation. The results show that larger project contractors tend to practice more market orientation compared with smaller project contractors. Nevertheless, there was no difference in market orientation practice between contractors' categories and contractors' (company) age. However, this study found that market orientation has significant negative correlation with work value received. Therefore, this study would be useful for the contractors to evaluate their practices of market orientation.