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

ABSTRACT The study objectives was to assess the mediating effect of marketing practices on therelationship between market orientation and performance of tour firms in Kenya. Extant literaturesuggests 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 onthe precise nature of this link has been both limited and ambiguous. The current study providesfurther evidence on the positive links between market orientation and firm performance through amediated approach. The study population comprised 104 tour firms registered with KenyaAssociation of Tour Operators. A descriptive cross-sectional survey was used. Primary data werecollected using semi-structured questionnaires. Data were analyzed using descriptive statistics,inferential statistics and regression analysis. The results of the study revealed a mediating effect ofmarketing practices on the market orientation and firm performance relationship. Specifically, theresults show that marketing practices partially mediate the market orientation and firmperformance relationship as R2 increased from .307 to .634. The regression coefficient reducedfrom .575 to .572 and was statistically significant at 0.05 level of significance. The study offeredfurther credence into the positive relationship between market orientation, marketing practices andperformance through a mediation approach in Kenyan tour firms.Keywords: Marketing practices, market orientation, tourism, tour firms, firm performanc