The effect of market orientation on business performance: evidence from two private healthcare institutions in Kenya

Abstract

The relationship between market orientation and business performance has been widely studied by scholars in marketing. Even though these studies have concluded that market orientation leads to better business performance, no studies of this nature have been done in the healthcare sector in Kenya. The purpose of this study was to test this relationship in the healthcare context in Kenya. The findings would be useful for healthcare managers in Kenya on whether to adopt it as a strategy in healthcare business or not.The study measured the effect of market orientation on three aspects of business performance in the private health sector in Kenya. These are employee performance, financial performance and customer satisfaction. Data was collected from a total of 37 respondents 11 being marketing executives and 26 being health center managers representing a total of 26 outpatient health facilities. Regression models were done and tests of correlation and significance carried out. The study found that market orientation positively influences customer satisfaction, employee performance and financial performance with the strongest association seen with customer satisfaction and the weakest with financial performance. This study therefore affirms the importance of market orientation as a strategy by healthcare managers in improving business performance. It is recommended to healthcare managers to seek to adopt practices and develop cultures that would lead their organizations to become more market oriented. More studies need to be conducted that are larger than this study to further test this relationship in the Kenyan Healthcare context.