Is marketing orientation a prerequisite for firm financial performance? Evidence from Poultry Firms in Nigeria.

Abstract

The aim of this study is two-fold. Firstly, it explained the process of validating “market orientation” as a reflective-formative second-order latent construct operationalized in three first-order dimensions (customer orientation, competitor orientation and inter-functional coordination). Secondly, it examined the relationship and necessity condition logic between the second-order market orientation and perceived financial performance by the combined use of PLS-SEM and NCA approaches. Based on cross-sectional survey research design, the study analysed the perceptions of random sample of 150 owners/managers of poultry MSMEs that are actively engaged in local production and processing of poultry products within Bauchi State, Nigeria. Standard repeated indicator approach was used to confirm the relationships existing between the reflective-formative higher order market orientation. Findings revealed that market orientation occurred with the presence of customer orientation, competitor orientation and inter-functional coordination. Therefore, it should be measured as reflective-formative Type II construct. Also, in line with the theory of market orientation, the study established direct influence of the second order market orientation on perceived financial performance of poultry MSMEs.