Market orientation and performance in low-income countries: The case of Zimbabwean retailers

Abstract

This study examines the effects of market orientation on the performance of retail outlets in Zimbabwe, a low-income country (LIC). LIC retailers operate at the nexus of subsistence marketplaces and the market economy. Socioeconomic, cultural and regulative institutions are more dynamic and differ substantially from the industrialized West. This provides an interesting context in which to test the generalizability of market orientation theory. A covariance structure model of the hypothesized relations indicates that market orientation improves performance. Reward systems have a positive effect on market orientation and a positive indirect effect on performance through market orientation. However, consistent with the characteristics of Zimbabwe, which are not unexpected in the LIC institutional context, interdepartmental conflict, centralization, and formalization do not have significant effects on market orientation. The results suggest that the market orientation–performance link generalizes but that some antecedents of market orientation identified in previous research may not apply in LICs.

Citation

Burgess, S.M. and Nyajeka, P. (2007), "Market orientation and performance in low-income countries: The case of Zimbabwean retailers", Rosa, J.A. and Viswanathan, M. (Ed.) Product and Market Development for Subsistence Marketplaces (Advances in International Management, Vol. 20), Emerald Group Publishing Limited, Leeds, pp. 215-257. https://doi.org/10.1016/S1571-5027(07)20010-5