The Impact of Process Quality Measurement on Financial Performance of Market Oriented Firms

Abstract

Market orientation and process quality measurement had been regarded in the literature as sources of competitive advantage for business performance. However, both these concepts had been discussed separately in their own respective academic discipline. In the context of business operation today, the organisation need to work as a team to survive in the challenging business environment. Market orientation originates from the marketing concept. On the other hand, process quality measurement originates from quality management principles and is viewed as one of its tools. Despite their importance, many organisations have not combined them in order to become a market driven and quality oriented organisation. Thus, this study investigated the impact of process quality measurement on the relationship between market orientation and financial performance of manufacturing firms in Malaysia. Although the overall results showed lack of evidence on the impact of process quality measurement on market orientation-financial performance relationships, individual results signified that process quality measurement moderate the relationship between market action and financial performance.