Significance of Market Orientation on Business Performance with Mediating Role of Employee and Customer Satisfaction in Ethiopia Banks

Gada Gizachew  Wakjira; Shashi Kant

doi:10.52633/jemi.v5i1.246

Authors

Gada Gizachew Wakjira Department of Marketing Management, Bule Hora University, Ethiopia. Author
Shashi Kant Department of Management, Bule Hora University, Ethiopia. Author

DOI:

https://doi.org/10.52633/jemi.v5i1.246

Keywords:

Market Orientation, Intelligence Generation, Intelligence Dissemination, Employee Satisfaction, Customer Satisfaction, Business Performance

Abstract

Market-oriented business organizations seek to understand customers’ expressed and latent needs and develop superior solutions for those needs. The research idea stems from academic findings that market orientation not only directly affects the performance of the concern but also indirectly. Data for this research was collected from both primary and secondary sources, and a quantitative research design was employed for data analysis. The sample size was determined to be 384 respondents. The scales were purified and validated with the help of descriptive data analysis under different normality assumptions. Exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and the results of structural equation modeling (SEM) revealed a significant relationship between market orientation and business performance. The indirect effects of market orientation on business performance through the mediating role of employee satisfaction and customer satisfaction were explored with the implication of SPSS Version 22 and AMOS 23. The study's findings suggest that market orientation is crucial for business success and can lead to increased employee and customer satisfaction. The results also indicate that market-oriented companies have a better understanding of their customer's needs, which allows them to develop superior solutions and gain a competitive advantage in the marketplace. By adopting a market-oriented approach, organizations can better align their strategies with customer needs and improve overall business performance.

Author Biographies

Gada Gizachew Wakjira, Department of Marketing Management, Bule Hora University, Ethiopia.

Research Scholar, College of Business and Economics, Department of Marketing Management, Bule Hora University, Ethiopia.
Shashi Kant, Department of Management, Bule Hora University, Ethiopia.

Assistant Professor, College of Business and Economics, Department of Management, Bule Hora University, Ethiopia. ORCID-ID-0000-0003-4722-5736

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