Market orientation and performance of coffee processing and production firms in Tanzaniaa case of some few selected firms

The main objective of this study was to assess the relationship between market orientation and performance of coffee processing and production firms in Tanzania. The specific objectives of the study were based on the three key dimensions of market orientation which were customer orientation, inter functional coordination and competitor orientation. Firm performance was defined based on its three measures chosen by the study which were sales growth, profit growth and increase in a firm market awareness compared to close competitors. The study carried out an extensive literature review to assess the relationship between market orientation and firms’ performance. The hypotheses were formulated based on three dimensions of market orientation and measures/indicators of firm’s performance as stated in many literatures. The study employed quantitative research method with survey research strategy used. Since many coffee processing and production firms are all over the country, the study employed non-probability sampling where by sample respondents were selected purposively depending on the conveniences of data availability. The primary data were collected from 30 respondents (firms) through a 5 point likert scale questionnaires where respondents gave their views/opinions on different items on market orientation. The response rate was 100%. The collected data were first edited, coded and analyzed using simple linear regression analysis focusing on the coefficient of determination, coefficient of correlation and beta coefficient. The analyses of the primary data collected revealed that customer orientation, inter-functional coordination and competitor orientation explain firm performance. The results finding support existing literature. The main policy implication of this study finding is that it can provide valuable information to the coffee processing and production firms’ managers by adopting a more significant marketing orientation and practices for future development of their firms. Knowledge from this study can provide managers with an enhanced ability to design their services much more efficiently and can be used to shape their organizational operational strategy and create competitive advantage and gain superior return.