How organizational culture influences market orientation and business performance in the restaurant industry

This study contributes to the hospitality literature by examining the direct and indirect effects of organizational culture types on market orientation (MO) and performance in the context of the restaurant industry. A structured questionnaire was used to survey owners/managers of independent restaurants in the U.S. The direct influence of supportive and innovative cultural types on firm performance was confirmed. In addition, MO partially mediated the direct positive effect of innovative organizational culture on firm performance. Our results also confirm that innovative and supportive organizational culture types are important predictors of MO and that they are better predictors of performance than MO. The findings should enhance organizational design and marketing options available to restaurant businesses and offer guidance to managers attempting to shape and mold organizational culture and the behaviors associated with the implementation of MO in order to improve performance.