The Impact of Market Orientation on the Performance of Iranian Firms in Tehran Stock Exchange

The past two decades have witnessed great interest into market orientation concept, based upon the premise that such activities enhance business performance. However, evidence has not confirmed regularities in different international market settings. This study investigates the market orientation construct and its measurement and its influence on the performance and the moderating role of environmental factors on the relationship between market orientation and performance. Through a survey administrated to 373 companies in Iran, 141 usable responses were received representing a response rate of 37.8 percent. Financial performance was measured both subjectively through the questioners and objectively through the data extracted from financial statements of company's annual reports. The findings show that market orientation has a significant and positive influence on both subjectively and objectively measured financial performance. Buyer power plays a limited moderating role in the effect of market orientation on the subjective performance, while market turbulence and competitive intensity show no moderating role. Finally implications of these findings for practitioners and academicians along with contributions to marketing literature are discussed.