Market Orientation in Non-Profit Sector: The Concept and Main Research Directions

Abstract

The paper aims to characterize the core theoretical framework of a concept of market orientation in the nonprofit sector. It systematizes up-to-date studies in this field and determines areas for future development. The analysis covers peer-reviewed papers from 1969 to 2015. The paper presents a detailed analysis of the theoretical concept of market orientation in non-profit organizations. Market orientation is regarded as organizational philosophy that gave rise to a certain form of organizational culture, as well as a set of behavioral norms that are consistent with the values of market-oriented organizational culture. Based on the analysis of current studies in the field of market orientation in non-profits, the author points out two most actively developing areas of empirical research. The first focuses on factors that affect the level of market orientation in non-profits. The second examines the impact of market orientation on the performance of non-profits. The paper concludes that market orientation has a positive impact on organisational performance. This result provides additional grounds to the validity of the concept of market orientation in the non-profit sector.