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The article examines the influences of perceived environmental turbulence on market orientation of service firms in
Tanzania. A conceptual framework linking perceived environmental turbulence and market orientation was developed
and tested using a sample of 178 service firms. The sample comprised hotels, travel agents and tour operators and
insurance agents. Structural Equation Modelling was used to analyse data. Results indicate that the perceived
environmental turbulence components, namely, perceived technological turbulence and perceived market turbulence
influence positively the market orientation of service firms whereas the perceived competitive intensity influences
negatively the market orientation of service firms in Tanzania. The findings contribute to the theory of antecedents and
consequences of market orientation developed by Kohli and Jaworski (1990) by adding a new set of factors that
influence market orientation of business firms. On the basis of these findings, the paper recommends to service firms for
them to be vigilant with changes taking place in the technological environment. They need also to be heedful of changes
in customer needs, preferences, composition and tastes and embrace market orientation as a strategic orientation for
navigating in highly turbulent environments. The paper also recommends further study to investigate factors that
influence managers’ perception of competitive intensity. |
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