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Conceptualising market orientation in non-profit organisations: definition, performance, and preliminary construction of a scale

Abstract This paper applies Narver and Slater's (1990) conceptualisation of market orientation to non-profit organisations. The study constructs a reliable and valid scale of the market orientation in non-profits in order to test the relationship between non-profits' market orientation and their performance outcomes in the context of a developing country. We surveyed 211 Indian non-profits and received 102 usable responses. We used principal axis factoring with oblique rotation to analyse the data. The scale was tested for its dimensionality, reliability, and various validities. The findings show a positive link between non-profits' market orientation and their performance in the context of a developing country. Market-oriented non-profits were found to be more effective in achieving their organisational mission, beneficiary satisfaction, and peer reputation than those that were less market oriented.