Market Orientation Impact on Organisational Performance of Non-Profit Organisation (NPOs) Among Developing Countries

Abstract

This research aims to examine the impact of market orientation, which is theoretically determined to involve intelligence generation, intelligence dissemination and responsiveness as independent variables on organisational performance among non-profit organisations from the prospective of growth in client satisfaction, growth in peer reputation and growth in resources as dependent variables. Market orientation impact on organisation’s performance among NPOs in developing countries has not been investigated. In addition, many of NPO activities in developing countries focus on donor side to increase their resources. The research is a descriptive research based on several assumptions. A tested and well-designed questionnaire distributed among NPO executives in Saudi Arabia. Out of 650 NPOs—the total population of this research—132 completed questionnaires were entitled to analysis. Hypotheses were tested through applying multiple linear regression analysis in three different models of regressions. The results of the analysis show a significant and positive relationship between responsiveness as a dimension of market orientation and the three indicators of organisation performance. Specifically, responsiveness has a high impact on growth in an organisation’s resources. Other dimensions of market orientation—intelligence generation and intelligence dissemination—have no significance relationships with organisation’s performance indicators among NPOs. NPOs in developing countries are facing problems in how to increase their resources or even satisfy their customers. Those customers can be their beneficiaries or donors. However, both customers have limited contributions and NPOs should adopt new methods to enlarge their organisation and resources as well.