The relationship between market orientation and export performance

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Date
2007
Authors
Sefnedi
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Abstract
Manufacturing sector plays a major role in Indonesia’s exports and contributes significantly to its gross domestic product (GDP). Indonesian exporters in the manufacturing sectors are encouraged by Indonesian government to upgrade their implementation of marketing management competency in order to export more. The study investigates the mediation impact of export marketing management competency on the relationship between market orientation and export performance in Indonesian manufacturing firms. Moderating effect of competitive intensity, market turbulence, and technological turbulence on the relationship between export marketing management competency and export performance are also investigated. The study also considers the influence of the control variables (firm size, export experience, export mode, and industrial type) on export performance. Data are collected through mail survey and a total of 109 usable responses, representing 12.43 per cent of the total sample, are analyzed. The results of the study indicate that the constructs of market orientation (customer orientation, competitor orientation, and inter-functional coordination) and export marketing management competency (export product management competency, export pricing management competency, export promotion management competency, and export distribution management competency) are statistically significant predictors of export performance, whereas market orientation is a determinant of export marketing management competency. The results support the mediation effect of export product management competency and export pricing management competency on the relationship between market orientation and export performance. This study does not find any evidence to support the moderating effect of competitive intensity, market turbulence and technological turbulence on the relationship between export marketing management competency and export performance. In addition, the findings revealed that none of the control variables significantly influence export performance.
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Master
Keywords
Business administration , Market orientation , Export performance
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