The Effect of Market Orientation on Performance of Private Hospitals: The Pivotal Role of the Marketing Function

Abstract

The objectives of this study are threefolded: (1) To measure the level of market orientation of private hospitals, (2) to examine the effects of the availability of a formal marketing department on market orientation and hospital performance, and finally (3) to examine the link between market orientation and performance of hospitals at the component level. Managers from 400 private hospitals in Turkey were surveyed with a usable response rate of 25 %. A positive connection was found between the level of the hospital’s market orientation and the presence of a marketing department in the hospital. The study results revealed that market orientation is positively related to general performance. According to the results of the component-level analysis, the three dimensions of market orientation had significant positive impacts on general performance. This study also showed that a statistically significant difference exists between the general performance assessments of the hospitals having a formal marketing department and of those not having a marketing department. Managerial implications of the results were discussed and study limitations and future research suggestions were also provided.