MARKETING PRACTICES, MARKET ORIENTATION AND PERFORMANCE OF TOUR FIRMS IN KENYA: A MEDIATED APPROACH

Abstract

ABSTRACT The study objectives was to assess the mediating effect of marketing practices on the
relationship between market orientation and performance of tour firms in Kenya. Extant literature
suggests that the relationship between market orientation and firm performance may be mediated.
While the conceptual arguments for such a relationship are well established, empirical evidence on
the precise nature of this link has been both limited and ambiguous. The current study provides
further evidence on the positive links between market orientation and firm performance through a
mediated approach. The study population comprised 104 tour firms registered with Kenya
Association of Tour Operators. A descriptive cross-sectional survey was used. Primary data were
collected using semi-structured questionnaires. Data were analyzed using descriptive statistics,
inferential statistics and regression analysis. The results of the study revealed a mediating effect of
marketing practices on the market orientation and firm performance relationship. Specifically, the
results show that marketing practices partially mediate the market orientation and firm
performance relationship as R2 increased from .307 to .634. The regression coefficient reduced
from .575 to .572 and was statistically significant at 0.05 level of significance. The study offered
further credence into the positive relationship between market orientation, marketing practices and
performance through a mediation approach in Kenyan tour firms.
Keywords: Marketing practices, market orientation, tourism, tour firms, firm performance