Market orientation and organizational performance in not-for-profit hospitals

This study explores market orientation in the not-for-profit hospital setting. The authors hypothesize a positive relationship between market orientation and four organizational factors, including professional commitment, professional education, and professional ethics of the senior management team, and organizational entrepreneurship, and three environmental factors, including perceptions of two states of competition and the state of demand. The study also examines the relationship between market orientation and hospital performance. Data from 237 top hospital administrators are used to empirically test the hypothesized relationships. Results provide evidence of a positive association between market orientation and both the professional commitment of the senior management team and organizational entrepreneurship Furthermore, the study provides strong support for the relationship between market orientation and hospital performance. (C) 2000 Elsevier Science Inc. All rights reserved.