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

Abstract

This study examined the relationship between market orientation culture and organization performance among banks in Nigeria. Two hundred and twenty copies of questionnaire were distributed to staff of nine banks. Cross sectional research design was adopted. The population of the study comprises of 500 staff of selected Banks, and a total of 220 staff was sampled. Data were collected and analyzed using 210 retrieved sets questionnaire. Correlation and multiple regression analysis was conducted. The study established that there is a significant positive relationship between market oriented culture (customer orientation, competitor orientation and inter-functional coordination) and their effect on organizational performance in the Nigerian banking sector.The study also developed an enhanced model that combines the resource-based view of the firm theory and the dynamic capability theory to explain the organizational culture and market orientation culture of bank institutions in Nigeria as key determinants of bank performance. It is recommended that banks should consider customer needs in developing their corporate strategy.