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The Role of Business Ethics in the Relationship between Market Orientation and Business performance

Author

Listed:
  • Gusti O. Widana

    (The School of Business Management, Intitut Teknologi Bandung, Indonesia)

  • Sudarso K. Wirjono

    (The School of Business Management, Intitut Teknologi Bandung, Indonesia)

  • Mustika S. Purwanegara

    (The School of Business Management, Intitut Teknologi Bandung, Indonesia)

  • Mohamad Toha

    (The School of Business Management, Intitut Teknologi Bandung, Indonesia)

Abstract

The positive of impact of market orientation toward business performance of a company is a common wisdom in the marketing literatures. Hence the prior studies recommend that the connection will depend on other strategic actions. In this regards, this study tries to assess the construct of business ethics as the precedent of market orientation in the context of Indonesia Islamic banks. Upon assessing data using SmartPLS, this study finds that market orientation is the determinant of business performance and Islamic business ethics is the precedent of market orientation. However, market orientation is not effective as the mediator in the relationship between Islamic businessethics and business performance. The discussion of this finding is provided as well as the managerial implication at the end of this paper.

Suggested Citation

  • Gusti O. Widana & Sudarso K. Wirjono & Mustika S. Purwanegara & Mohamad Toha, 2015. "The Role of Business Ethics in the Relationship between Market Orientation and Business performance," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 4(1), pages 95-111, January.
    • Handle: RePEc:rbs:ijfbss:v:4:y:2015:i:1:p:95-111
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    References listed on IDEAS

    as
    1. Adam Nguyen & Wesley Cragg, 2012. "Interorganizational Favour Exchange and the Relationship Between Doing Well and Doing Good," Journal of Business Ethics, Springer, vol. 105(1), pages 53-68, January.
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