An Analysis of the Impact of Market Orientation on Business Performance: The Mediating Role of Social Networks Acceptance

Document Type : Research Paper

Authors
Elham Heydari 1
nader seyed kalali 2
Mahtab Mirzaee 3
1 Assistant Professor, Faculty of Management, Kharazmi University, Tehran, Iran
2 Assistant Professor, Department of Management, Institute for Humanities and Cultural Studies, Tehran, Iran.
3 MA in Management, Kharazmi University, Tehran, Iran
10.22054/nms.2023.68966.1424
Abstract
Introduction

This study aims at investigating the relationship between market orientation, social networks acceptance, and business performance. These variables have been acknowledged by various scholars as having a significant impact on company performance. Company performance is influenced by a variety of factors, and researchers are attempting to uncover the roots of this performance in order to enhance the competitive potential of companies. Insurance companies, as they operate in a competitive industry and possess close relationships with customers, were selected as the focus of the study.
Methods
This study explored the impact of market orientation on business performance, examining the mediating role of social networks acceptance. A survey was conducted among senior executives of the Asian insurance company branches in Iran. Cochran's formula was employed to determine the sample size, resulting in a statistical population of 158 managers. The questionnaire had two sections: demography and research variables, including market orientation, social networks acceptance, and business performance. Structural Equation Modeling (SEM) and SmartPLS software were used to analyze the data.
Results
The study set out to examine the relationship between market orientation, social media acceptance, and business performance, and all four hypotheses were confirmed. It was found that market orientation has a positive impact on business performance, and this relationship is mediated by social media acceptance. The second hypothesis, which states that market orientation has a positive effect on business performance, was also validated. Additionally, the third hypothesis, indicating a positive link between market orientation and social media acceptance, was also supported. Finally, the fourth hypothesis, demonstrating the positive impact of social media acceptance on business performance, was also confirmed.
Conclusion
Regarding the results of this research, it is evident that market orientation has a positive impact on business performance. Asia Insurance managers should prioritize market-oriented structures and processes to ensure high levels of performance. Additionally, the findings suggest that companies should focus on creating marketing plans that emphasize market orientation. Market orientation is also linked to increased acceptance of social networks. Invested in new technologies, companies can identify the needs of their customers and establish strong relationships with them through social networks. The research concluded that social networks acceptance is directly correlated with improved business performance, indicating that insurance companies must utilize social networks to attract new customers and increase loyalty among existing customers. It is crucial for Asia Insurance to focus on market-oriented strategies and incorporate social networks into their operations to achieve better business performance.
The sample of this study is limited to managers of the branches of the Asian insurance company, exclusively located in Iran. Therefore, future scholars can expand this research to other geographical locations and industries, with potentially larger samples. Additionally, the investigation can explore the influence of other mediating or moderator variables, such as cultural aspects and leadership styles, on the relationship between market orientation and performance.
Keywords
Market Orientation
Business Performance
Social Networks
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