International Research Journal of Applied and Basic Sciences

2014 Available online at www.irjabs.com

ISSN 2251-838X / Vol, 8 (2): 231-240
Science Explorer Publications
An Examination of the status of competitor
orientation and customer orientation of SMEs and
Their Relationship with Customers Performance
A Case Study:Industriesin Ilam Province
Ali Reza Mahmoodean
1
, Yasan Allah Poor Ashraf
2
, Seyed Reza Hassani
3
1. Student of Master of business Administration-Marketing In Islamic Azad University Kermanshah branch
2. Assistant Professor in Management Department of Ilam University
3. Assistant Professor of Management Department in Islamic Azad University Kermanshah branch
Corresponding Author email: Mahmodean8277@yahoo.com
ABSTRACT: The main aim of present study is to examine the relationship of competitor orientation and
customer orientation with customers performance in small and medium industries of province of Ilam.
Method of research is a type of correlative survey. In this study, the relationship of competitor orientation
and customer orientation with customers performance in small and medium industries of province of Ilam
would be examined. Population of the study consists of small and medium industries in province of Ilam
with 141 samples using relative stratified random sampling method. The questionnaire was applied for
data gathering. A Cronbachs alpha coefficient of 0.8636 was obtained for the questionnaire. Research
data was analyzed using LIZREL and at the level of descriptive statistic, frequency percentage, and
column chart and at the level of inferential statistic, structural equations were used. The findings of
research indicate that two hypotheses of the research are confirmed. Therefore, competitor orientation
and customer orientation of SMEs have a positive significant relationship with increasing performance of
customer.
Key Words: customer orientation, Competitor orientation, Customer performance, Structural equations.
INTRODUCTION
Quick and complicated evolutions during recent decades and also acceleration of globalization have made
different countries trying to receive the evolutions more than ever (Rao, 1987). Whatever was assumed as an
economic advantage until some previous decades included to set up and to keep active big enterprises and it was
argued that the bigger are these enterprises, the more dynamic and more powerful would be the economic
situation. Although this assumption was prospered during some decades, based upon which giant firms were
appeared, recent evolutions, especially population pressures, from time to time innovations, complicacy of
management and decision making processes, the need for immediate and necessary decision makings, and
commerce resulted from activities of small and medium enterprises have revealed the importance of these
enterprises (SabaghKermani, 1999).
During recent decades, fundamental changes have been occurred in business areas. These changes have
resulted in such a situations, in which small and medium enterprises by respecting their role in employment and
economic development of countries, have played an expanded, diverse, and important part in developing countries
(,Kula and Tatoglu 1, 2003).
In addition to many effective factors, competitor orientation and customer orientation of SMEs and services of
small industries at worlds markets depend upon market orientation as an important and strategic factor. In other
words, SMEs should recognize carefully the features of target markets, characteristics and needs of customers and
performance of competitors within these markets and provide required regulations for competition in these markets
within their own organizational system to represent their competitor orientation and customer orientation. The
framework of present study is the direct and indirect relationship of competitor orientation and customer orientation
and their relationship with customers performance. It means that competitor orientation and customer orientation
Intl. Res. J. Appl. Basic. Sci. Vol., 8 (2), 231-240, 2014
232
have been related to customers performance both directly and indirectly through making value. By considering SMEs
studied in present research, the orientation of discussions is towards small industries. Respecting limited resources in
small and medium enterprises, taking attention to the situation of competitor orientation and customer orientation has
a high importance, so that many of researchers consider having failure in mentioned factors as the main reason of
failure in these enterprises (industries annual report, 2013).
Theoretical literature review
Competitor orientation
According to (Narver and Slater 1990, pp21-22). competitor orientation, as an element of market
orientation, means that a seller understands the short-term strengths and weaknesses and long-term capabilities
and strategies of both the key current and potential competitors. However, small organisations seem to view
competitor orientation differently and are not as concerned with long-term strategies. The literature suggests that
most small businesses are short-term oriented (Carson 1990, Harris and Watkins 1998), and that short-term results
are perceived to be more important than long-term strategic issues (Harris and Watkins 1998). Managers in small
businesses are more concerned with running daily operations than with long term business planning (Amer and
Bain 1990, Robinson and Pearce 1984). Hence, for small businesses, short-term results are often a priority over
projected long-term advantages. However, in order to develop a sustainable competitive advantage, managers
may need to improve appropriate small business marketing and planning skills.
Competitor orientation as an element of market orientation means that seller recognizes weaknesses,
strengths, and capabilities, and also long-term strategies of his current key potential competitors (Narver and
Slater, 1990).
Competitor oriented firms are seeking for determining their weakness and strength in the firm not only
based on theirs products and marketing, but also according to processes and the organization. They regularly
review their capabilities towards others based on skills, and knowledge of individuals, technical and physical
systems, management systems, organizational structures, values, and cultural norms (Birchall and Tavstiga, 2005).
The effect of competitor orientation indicates that this orientation can be helpful for innovation of new product and it
includes statements of Lee and Calanton (1998) that found that competitors knowledge is always correlated with
advantages of new product. Competitors knowledge enables identification of all of available and developing
technology collections and allows orientations timing on consumers behavior and also flourishes innovation of new
product (Augusto & Coelho, 2009).
As mentioned above, several researchers regard competitor orientation as an important part of what is
referred to as market orientation (e.g. Han et al. 2000, Gray et al. 1998, Narver& Slater 1990). Competitor
orientation comes along with an organization wider understanding of what characteristics has the market where it is
operating. An exclusive customer focus may result in incomplete business strategy and action (Han et al. 1998).
Competitor orientation refers to a firms ability to identify its competitors, understand and respond to the strengths,
weaknesses, capabilities and strategies of those competitors, and constantly collect competitor information from
the marketplace (Han et al., 1998; Im and Workman, 2004; Narver and Slater, 1990).
Yet, small firms understand competitors orientation in different way and they are not related to long-term
strategies. Studies show that most of small businesses are short-term oriented (Carson, 1990), and long-term
results are considered to be more important than short-term strategic results. Managers in small businesses are
more related with implementing daily operations rather long-term business planning. Therefore, in small
businesses, short-term results are often a priority over long-term advantages. However, in order to developing
stable competitive advantage and ultimately reaching to managers better performance should improve marketing
skills and business planning.(Zatezalo& Gray, 2000).
The significance of competitor orientation
Attaining high performance of an organization relies on creating stable competitive advantage and offering
stable value for customers. This assures the organization to set up and keep a kind of organizational culture, which
provides a required field for revealing necessary behaviors. According to this, it can be said that it is the
organizational cultural competitor orientation, provides required behaviors for making best value for customers and
consequently sustained superior performance through maximal efficiency and effectiveness (Narver& Slater, 1990).
For small organisations, competition is a serious threat, but a lack of resources (such as time and capital) often
means they cannot afford to collect information on competitors, or if they do, they lack the resources to react
effectively. It is important to understand how different characteristics, limitations and advantages of small
organisations influence their operations. From a business development perspective, it is also necessary to provide
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233
small business managers with advice on how to better manage their businesses and to position them more
competitively. (Zatezalo& Gray, 2000).
Some researchers consider competitors orientation as an important part of markets orientation, for
example; Hun et al (2000) and Gray et al ( 1998), Narver and Slater (1990). Competitors orientation is associated
with a wider view of organization towards market features in which it stats working. A unique approach towards
customer may lead to an impaired business performance and strategy (Hun et al, 1998). Hence, Wensley and Dee,
1988) have suggested making a balance between organizations attention towards customer and competitors. We
believe that competitors orientation consists of collecting information about competitors, activities, and their
products and also markets potentials. Along with Narver and Slater (1990), we define competitors orientation as a
firms understanding of weakness, strength, capabilities, and strategies of main potential competitors. They state
that firms must identify and recognize long-term weaknesses and strengths, and also long-term capabilities and
strategies of their current and future competitors (Muller et al, 2002, 5-7), which regarding this issue may lead to
better performance and special attention towards customers.
Customer orientation
Customer orientation is a continuous understanding of current and potential needs of target customers and
consumer and applying that knowledge for creating superior value for them. A seller makes value for consumer just
in two ways: by increasing consumers benefits regarding costs and reducing consumers costs relating to benefits
(Narver& Slater, 1990). It can be said that customer orientation reflects an organization with proactive attitude. In
this state, (Naver& Slater, 1990), define customer orientation as; an organizational culture that makes necessary
behaviors effectively and efficiently for creating superior values for consumers, hence it is continuous high
performance for business and businessmen (Gotteland& Boule, 2006). In some firms, loyal customers are the best
to be presenr. Maintaining customers can have clear and positive effect upon firms profitability. Studies indicate
that 2 till 5 % extra maintenance of customers can improve our profit significantly, while reduced costs is 10%. Most
of researchers and participants agree that consent is occurred when purchases expectations are satisfied. It
means that products characteristics are the same that customers expect. This implies that firms must be with
customers and satisfy purchases expectations. Lack of satisfaction is the result of lack of expectations
satisfaction. Market holders who understand the effect of customers satisfaction upon commercial performance are
demanding subsequent secure sales based on satisfying purposes of products consumers currently. What takes
place in current purchase decision will affect upon subsequent purchase decisions (Sink & Rank Hood, 2004).
Customer orientation requires that a seller understands a buyers entire value chain, not only as it is today but also
as it will evolve over time subject to internal and market dynamics (Narver& Slater 1990). The concept of customer
orientation includes understanding customers needs and satisfying them as well as perceiving and reducing his
perceived sacrifices. Conceptually close to what other researchers describe as customer orientation, Homburg
(1998) suggests closeness to the customer, with dimensions such as openness in providing information to
customers and flexibility in dealing with customers, to describe how firms should interact with their customers.
Without exceptions, all of managers have consensus in this view that focusing on customer is the basid element of
market orientation. The believe that focusing on customers includes getting information about customers needs and
preferences (Kohli and Jaworski, 1990). Those firms that really understand market and respond to various needs of
customers in a way are described as market oriented firms. Market orientations is rooted in marketing theory as
operationalization of marketing concept and related to learning about market through developing markets understanding
and applying it in marketing activities and decisions. Respecting business partners (customers, competitors, and internal
tasks) and all of those who affect upon performance, marketing orientation becomes a base of organizational behaviors
(Birchall&Tavstiga, 2005,108).
Business scholars have advocated that managers become more customer oriented, using terms such as
customer-focused (Gulati and Oldroyd, 2005), close to the customer (Peters and Waterman, 1984), and customer-
led (Slater and Narver, 1998).
Since these terms may be used synonymously (Slater and Narver, 1995), we use the term customer
orientation to describe this focus on customers. Customer-oriented firms seek to understand customers
expressed and latent needs, and develop superior solutions to those needs. (Slater and Narver, 1999, p. 1165)
Customer orientation involves taking actions based on market intelligence as opposed to verbalized customer
opinions alone (Kohli and Jaworski1990). It means putting the interests of ones customers first to help build
customer relationships, identify market opportunities, and sustain business growth (Kohli and Jaworski, 1990;
Narver and Slater, 1990). Generally, the logic underlying these admonitions is that the more businesses are aware
of their customers needs, the better they will be in adapting to those needs. In turn, there is considerable evidence
that adapting to customer needs results in superior performance (Narver and Slater, 1990).
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Necessity of customer orientation
Today, competition in market has become deeper and more professional concept and the least neglect in
coordinating with markets needs and changes can lead to death of organization. Respecting this point that
competition in market is being intensified day-to- day, responding customers needs with the aim of satisfaction and
loyalty gains more significance and firms should emphasize on maintaining current customers and making long-
term and profitable relation with them. The main view of maintaining customers is that his satisfaction must be
provided continuously through offering superior value. It must be noted that in todays business, just customers
satisfaction is not enough and it must not be sufficed only customers satisfaction, but also customers loyalty
should be noted (Hasanzadeh&Ghadiri, 2010, 196-198). Being informed about customers subjective image of the
organization, in addition to highlight weakness and strength of the organization, would provide the field for adopting
suitable strategies and improving the level of performance. Today, value making for customer has a significant
effect on his behavior. The mean by making value is what solves any problems of the customer and satisfies his
need. Now in global economy, whose survival is in the hands of customers, firms cannot be indifferent towards
customers needs and expectations. They should drive their activities and capabilities towards customers
satisfaction because the only source of capital return is the customers. Therefore, the first principle in the world of
business is to make customer friendly values and they are obtained just through firms processes (Aali, 2002,;67)
(Narver& Slater, 1990). Customer orientation is defined as some activities to understand target purchaser and
making more values for them. They believe that customer orientation is the core of market orientation and making
more values foe customers requires a continuous understanding of the whole of purchaser value chain. Also, they
state that in a market oriented business, employees spend significant time for customers. On the other hand,
customer orientation helps the firm in making products concerning customers needs. In aspect of customer
orientation, special attention should be devoted to commitment towards customers, making values for them,
understanding their needs, and evaluating customers satisfaction and also after-sale services .Davis,(2000)
customer orientations consists of two parts including: 1. Customer analysis, and 2. Responding to the customer,
and demonstrates that customer orientations and its aspects have positive relationship with firms performance
(Doaee and Bakhtiari, 2009;60).
Definition of performance
There are different points of view about concept of performance. Performance could be considered just as
obtained results. in terms of individual aspects, performance refers to a history of an individuals achievements.
Keene (1996) discusses that performance includes something that an individual leaves as his history and it is
made regardless the purpose. Bernadine et al (1995) state that performance should be defined as a result of
working.
Oxford English Dictionary defines performance as research, implementation, and fulfillment of any given
task. This definition refers to the output/ outcomes (accomplishment). Also it points out to accomplishing a task
and the obtained results. Therefore, performance can be considered as a behavior and the way, based upon which
firms, work groups, and individuals work. Campell (1990) believes that performance is a behavior and it must be
distinguished from results because it can be defined influenced by systems factors. Yet, if performance is defined
based upon both behavior and results, a more comprehensive view would be achieved about it. This view was
offered well by Brumbrach (1988): performance means both behavior and results. Behaviors are resulted from the
individual and transforms performance from subjective state into practical one. Behaviors are not only the means
for obtaining results, but also they are inherently achievements. It means that regardless results, they can be
evaluated. This definition of performance led to studying both inputs (behavior) and achievements (outcomes) in
managing performance (Armstrong, 2006, pp.13-14).
The effects of customer orientation and competitor orientation on performance
Among preliminary works, Kohi&Jaworski (1990), marketing authors have devoted much attention to the
concept of market orientation and how to affect upon a firms efficiency. Market orientation, norms, and forming
believes make an integrated organizational effort to efficient and effective respond to customers and competitors.
Hence, market orientation has a positive effect on firms efficiency.
In spite of having agreement upon the positive effect of market orientation, studies have offered different
views about roles of two main components of market orientation: customers orientation, and competitors
orientation. Some researchers believe that these two components have equal significanr conceptually (Narver&
Slater, 1990) and (Narver&Salter, 1994). Others argue that customers orientation is the most fundamental aspect
of the market orientation (Peter & Austin, 1987). In fact, some authors argues that competitors orientation may be
opposing to customers orientation (Deshpande& Farley, 1998) while some others suggest that effective strategic
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235
orientation requires a Transcendental combination of customers and competitors orientation (Day &wensley,
1998, Gatignon, 1997, - Voss & Voss,2000).
Both customer-focus and competitor-focus tend to be externally oriented, or outside-in (Baker and
Sinkula, 1999; Celuch et al., 2002). That is, they tend to focus the firms attention on factors external to the firm.
However, there has been increasing realization in the strategy literature that a preoccupation on external factors
overlooks vital internal firm factors (Barney and Zajac, 1994; Henderson and Mitchell, 1997). Recently, the strategy
literature has turned its attention to an inside-out orientation (Baker and Sinkula, 1999; Celuch et al., 2002),
focusing on internal firm factors notably a learning orientation (Bunderson and Sutcliffe, 2003; Garvin, 1993;
Senge, 1990).
Today, only those firms have suitable situation in the field of competition that takes their main axis of activities in
providing customers needs and their satisfaction, and in order to reach an optimal performance, a business should
develop and maintain its own competitive advantages. Current emphasis of international commerce is upon
creating values continuously for customers. A business is customer and competitor oriented when its culture
systematically creates expected values of customers. In past, firms identified their competitors and signified their
weakness and strength and scope of their activities, and typically competitions were formed locally. However, today
everything is changed, there is no longer a thing as activity boundary and competitors come into the boundaries
easily. On the other hand, simultaneously products, competitors, and markets are becoming global.
Figure1. Conceptual model of research
History
MariusTetodosive et al (2012) accomplished a study entitled; Strategic Orientation, Marketing
Capabilities, and Firms performance . This study was carried out in Cyprus and 316 managers of Banks branches
were the sample of this study. They examined dimensions of strategic orientation including competitor orientation
and customer orientation in banks performance. Obtained results indicated that strategic orientations and its
dimensions have positive effect upon banks performance.
A study entitled; Accomplishing Merket Orientation in Small firms by JunnyInogucci in 2011 with the aim
of examining implementation of market orientation in small to medium firms. Here the purpose is making important
factors notable for representing market orientation in small to medium sized firms, whose results indicated that
there is a positive relationship between market orientation and organizations performance. Then this innovation in
the second stage would lead to stimulation of customers loyalty and quality of products and services.
Quin Zehng Zhou et al (2007) in a study entitled; The Effect of Customer Orientation and Competitor
Orientation upon performance in Global Markets examined the effect of customer and competitor orientation on
performance in hotel and hospitality industry in global markets. The findings of this study show that customer
orientation has a positive effect upon markets economic development. Competitor orientation rather affects upon
developing markets and those markets exposed to rare(infrequent) sources.
In a study by Anna Zatezlou and Brandon Gray in 2000 entitled; Customer orientation and Competitor
Orientation in Small Sized Firms ,it was concluded that competition is a serious threat for small firms, however
shortage of source means that they cannot obtain information about competitors or if they can so, they wont have
any sources to effective reaction.
Customer
orientation
Competitor
orientation
Customers
performance
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RESEARCH METHODOLOGY
In present study, since expected results can be used in process of applying managers information and
ways of dealing with market, it is an applied research. Research method is based on an applied purpose. This
research aims examining dimensions of customer orientation and competitor orientation and the way of their effect
upon customers performance in SMEs of province of Ilam. Also it intends to determine the relationship between
two variables.
During present study, a comprehensive scale for customer orientation and competitor orientation is
developed that is applied for measuring customer orientation and competitor orientation of industries. In this
research, in format of a field study, university professors, experienced and professional experts were questioned.
Then in experts verified model, a community of managers and employees in industry was questioned. In order to
collect managers opinions, a questionnaire consisting some descriptions about research and technical questions
and general ones with Likerts five point scale upon customer and competitor orientation and also effective
elements on customers performance was designed, distributed and collected. Totally, 30 industry managers were
questioned to obtain reliability of questionnaire using Cronbachs alpha, which finally indicated suitable reliability of
this tool. Following reliability, questionnaires were distributed and 111 out of 125 questionnaires were collected.
Population and sampling method of study
Population is defined as a number of desired elements that have at least one of specified attributes (Azar,
Momeni, 2002), which is divided into two parts of finite and infinite populations (Danaeefard et al, 2008).
Respecting the purpose of study and also definition of ministry of industries and mines of small and medium
enterprises, enterprises with fewer than 50 employees are considered as small and medium enterprises (website of
ministry of industries and mines). By considering this fact that present study has been done in industries of
province of Ilam, hence research population includes active industrial companies in this province. Its number is 141
units regarding statistic of industries in province of Ilam.
Since the population was finite, all of subjects were polled and all of population was selected as a sample
and the
questionnaire was distributed among subjects.
DATA GATHERING METHOD
Data of present study was obtained from two library and filed sources. Library method including studying
on articles, books, and internet sources was used for writing theoretical bases of the study. Also field method and
applying questionnaire were used in testing researchs hypotheses.
Basically, due to lack of need for many resources, low costs, and also potential capabilities in gathering samples,
questionnaire is regarded as one of effective research tools for researches and professionals (Khaki, 2003).
Examining structural model (path analysis) and testing researchs hypotheses
In this part, it is intended to prove researchs hypotheses. Model of hypotheses are presented, in which by
respecting significant numbers, approved hypotheses are rejected. In order to examine researchs hypotheses,
structural equation modeling (SEM) was applied.
The diagram below shows the significance of obtained coefficients and parameters in measurement model
of the research, which if their individual significance test is greater than 1.96 and smaller than -1.96, obtained
coefficients would be significant. Being significant indicates that the model is significant. In other words, to place
every component in format of every element is significant.
Intl. Res. J. Appl. Basic. Sci. Vol., 8 (2), 231-240, 2014
237
Model in the form of standard estimation
figure1. Significance model of research hypotheses in the form of standard estimation
Figure2. Model in the form of significance factors
Figure3. Significance model of researchs hypotheses in the form of significance factors
CUM : Customer orientation
COM: competitor orientation
PER: Performance
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237
Model in the form of standard estimation
figure1. Significance model of research hypotheses in the form of standard estimation
Figure2. Model in the form of significance factors
Figure3. Significance model of researchs hypotheses in the form of significance factors
CUM : Customer orientation
COM: competitor orientation
PER: Performance
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237
Model in the form of standard estimation
figure1. Significance model of research hypotheses in the form of standard estimation
Figure2. Model in the form of significance factors
Figure3. Significance model of researchs hypotheses in the form of significance factors
CUM : Customer orientation
COM: competitor orientation
PER: Performance
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238
Testing researchs hypotheses
First hypothesis
Competitor orientation of SEMs has a positive significant relationship with increasing customers
performance.
Statistical hypotheses of test are:
H0= competitor orientation of SEMs has no positive significant relationship with increasing customers
performance.
H1= competitor orientation has a positive significant relationship with increasing customers performance.
H0: xy = 0
H1: xy 0
Table1. Obtained results from analyzing structural equations model: first hypothesis
Standard
coefficient
T_value Independent
variable
Dependent
variable
Test result
63% 5.28 Competitor
orientation
Customers
performance
Rejecting H0
H1 claims that competitor orientation of SEMs has a positive significant relationship with increasing
customers performance. According to table 1-4, standard coefficients between two latent variables of competitor
orientation and customers performance equals 0.63 and by respecting obtained T-value (5.28) that is greater than
1.96, hence H0 is rejected and H1 is confirmed. Therefore, it can be concluded that competitor orientation has a
direct, positive and significant relationship with customers performance. The value of this effect is 0.63; hence first
hypothesis of research is confirmed.
Second hypothesis
Customer orientation of SEMs has a positive significant relationship with increasing customers
performance.
Statistical hypotheses of test are
H0= customer orientation of SEMs has no positive significant relationship with increasing customers
performance.
H1= customer orientation has a positive significant relationship with increasing customers performance.
H0: xy =0
H1:xy 0
Table3. Obtained results from analyzing structural equation model: second hypothesis
Standard
coefficient
T_value Independent
variable
Dependent
variable
Test result
59% 4.33 Customer
orientation
Customers
performance
Rejecting H0
H1 claims that customer orientation of SEMs has a positive significant relationship with increasing
customers performance. According to table 2-4, standard coefficient between two latent variables of customer
orientation and customers performance equals .59 and by respecting obtained T-value (4.33), which is greater
than 1.96, hence H0 is rejected and H1 is confirmed. Therefore, it can be concluded that costumer orientation has
a direct, positive, and significant relationship with customers performance. The value of this effect is 0.59, hence
second hypothesis of study is confirmed.
CUM : Customer orientation
COM: competitor orientation
PER: Performance
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Rating effective factors on customers performance in SEMs
Respecting results of structural equations and researchs structured model based on standard coefficient
and significance value of T, rating of factors are as follows in the below table:
Table4. Ranking effective factors on customer orientation and competitor orientation
Factors Correlative coefficient T-value Rank
Customer orientation 0.59 4.33 2
Competitor orientation 0.63 5.28 1
In order to ranking variables, Friedmans test was applied, whose results are presented in the table below:
Friedmans test
Table5.
Factors Rank mean Rank
Customer orientation 4.38 2
Competitor orientation 5.46 1
Conceptual model of research in the form of standard estimation
0.59
0.63
Conclusions and suggestions
First hypothesis: competitor orientation has a positive significant relationship with customers
performance.
Respecting hypothesis, H1 claims that competitor orientation has a positive, significant relationship with
customers performance. According to result of structural equation modeling, standard coefficient between two
variables of competitor orientation and customers performance equals 0.63, so that having t=5.28 (greater than
1.96) is a proof for confirming H1. It means that there is a direct positive relationship between competitor
orientation and customers performance. This finding is aligned with findings of researchers such as Aghazadeh
(2010), Zatezalo and Gray(2009), and Queen, James, and Sanjeev (2007), and Tilo and Muller (2001).
Second hypothesis: customer orientation has a positive significant relationship with customers
performance.
Respecting hypothesis, H1 claims that customer orientation has a positive and significant relationship with
customers performance. According to result of structural equation modeling, standard coefficient between two
variables of customer orientation and customers performance equals 0.59, so that having t=4.33 (greater than
1.96) is a proof for confirming H1. It means that there is a direct positive relationship between customer orientation
and customers performance. This finding is aligned with findings of researchers such as Yazadi et al (2011),
RezaeeandShekari, Leo (2010) and Michel Pitt (2008), Zatezalo and Gray (2009), Queen ,James, and Sanjeev
(2007), and Tilo and Muller (2001).
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