Purpose: The purpose of this paper is to explore the mediating role of organisational harmony and fellow-feelings in the relationship between intelligence generations, dissemination and implementation on business performance and explain how market orientation impacts certain aspects of organisational behaviour which in turn lead to the performance of service firms.
Design/methodology/approach: The data set comprises 108 responses of senior managers within the logistics sector. The multi-level sequential mediation path analysis is used to examine the above mediating role.
Findings: Results indicate that intelligence dissemination (ID), response implementation (RI) and business performance relationship is significantly mediated via fellow-feelings and organisational harmony. However, the relationship between dissemination, implementation and overall business performance is mostly mediated by fellow-feelings and followed by organisational harmony. Furthermore, when overall market orientation (intelligence generation, dissemination and RI) is used as a determinant of business performance, organsiational harmony emerged as the most significant contributor to organsiational performance.
Practical implications: Managers are urged to focus on building fellow-feelings among their employees, resulting in a harmonious work environment between functional units and market orientation organisation wide.
Originality/value: Compared to previous research, this is one of the first attempts to develop an understanding of fellow-feelings, contributing to organsiational harmony resulting market orientation and, hence, business performance. Market orientation conceptualisations lump intelligence generation, dissemination and RI of business activities together but do not explain how market orientation impacts fellow-feelings and organisational harmony which in turn leads to performance. The authors specifically address this important lacuna in our conceptualisation and propose that ID and RI lead to fellow-feelings within functional departments and results in organisational harmony.