Do universities that are more market orientated perform better?

Abstract

Amid rapid changes in the tertiary education sector witnessed in recent years, issues such as performance and accountability are becoming increasingly important. Among other things, market orientation has often been linked to performance. Investigates the degree of market orientation and its effect on performance at Australian and New Zealand universities. Results confirm a positive relationship between market orientation and overall performance: providing support for the relevance of market orientation to universities. Confirms the importance of the responsiveness dimension. Another interesting finding is that there is no significant difference in the level of market orientation between business and non‐business schools or departments in universities in Australia and New Zealand. Implications, limitations and directions for further research are also discussed.