Abstract:
Due to the turbulent and dynamic nature of the business environment,
creating and sustaining competitive advantage demands a company to develop
a formidable company-wide market-oriented culture. The study adopted a
quantitative research approach in its analysis. The purpose of the study was to
examine the link between market orientation, innovation and performance.
The total population of hotels at the study area was 159. Of this number, the
study used simple random sampling method to select 79 respondents for the
study. The respondents of the study were the managers/owners of the hotels.
Data was collected through survey questionnaire and analysed through the use
of PLS-SEM version 2.0, inferential statistics were used for the interpretation
and discussion of findings. The results of the study showed that the level of
market orientation practices among hotels in Cape Coast is low. The findings
further revealed that a strong positive relationship exists between market
orientation and business performance. Again, the findings disclosed that
market orientation has positive correlation with firms’ innovativeness and
innovation mediated market orientation and firms’ performance. Finally, the
findings established a strong positive relationship between firms’
innovativeness and firms’ performance. The study found the mediation role of
innovation very significant. The study thus concluded that a positive
association exists between market orientation, innovation, and performance.
The study, therefore, recommends that hotels in Cape Coast put much
emphasis on marketing research in order to develop an innovative market
orientation strategy.
