Impact of market orientation on firm performance in Indian textile processing industry Mediating effect of entrepreneurial proclivity

Abstract

newlineTextile industry in India plays an important role in generating scope of employments. newlineIt significantly contributes to industrial production, country s overall GDP and export newlineearnings. Textile processing segment incorporates maximum value addition to a textile newlineproduct. In spite of good opportunities, currently textile processing industry is not able to newlineperform according to its potential. The customers are asking for high quality standards at newlinecompetitive price and also there is a challenge for the industry to meet environmental newlinestandards. In this scenario, our objective is to find the effect of market orientation (MO) and newlineentrepreneurial proclivity (EP) on organizational performance (FP) among textile processing newlineunits. Another objective is to examine the relationship among these constructs. The newlinerespondents are selected from Punjab and Himachal Pradesh. 234 valid responses are used for newlinethe analysis purpose. Data analysis of this research study reveals that MO and its three newlinecomponents; customer orientation, competitor orientation and inter functional coordination newlinehave positive relationship with FP. Another outcome of our study is that EP has positive newlinesignificant bearing on performance of textile processing units. An output result of this study newlinealso shows that the association between MO and FP is mediated by EP behaviour of textile newlineprocessing units. The research results imply that if the managers of textile processing firms newlinefocus on using MO and EP as strategic orientations then the performance will most likely to newlinebe improved. As a result this industry will be in a position to grab most of the emerging newlineopportunities and convert them into profitable business so that all the stakeholders will get newlineeconomic and social benefits.