Market orientation and economic performance in textile companies in the Central Valleys of Oaxaca

Abstract

This article examines the theoretical foundations and empirical evidence on the relationship between market orientation and economic performance in order to develop a conceptual framework applicable to textile firms in the Central Valleys of Oaxaca, Mexico. An integrative theoretical review is conducted using classic and contemporary literature in strategic marketing, small business research and craft-based contexts, complemented by academic and institutional sources on Oaxacan textile production. The analysis distinguishes two major traditions: Narver and Slater’s cultural approach, based on customer orientation, competitor orientation and interfunctional coordination, and Kohli and Jaworski’s behavioral approach, which defines market orientation as the generation, dissemination and responsiveness to market intelligence. Accumulated evidence generally supports a positive association between market orientation and firm performance, although its magnitude varies according to measurement, firm size, sector and competitive environment. For the textile context of the Central Valleys, the behavioral approach is considered especially useful because it allows researchers to examine information and response processes without assuming formal departmental structures. The proposed model links market intelligence generation, internal interpretation and market responsiveness to economic performance measured through sales, profitability, growth and business stability, while recognizing territorial and organizational contingencies.