4. Internal Orientation and Market Orientation
Internal orientation and market orientation are moderating variables
which have influences on the relationship between commitment and
performance. The former can be defined as the ability to connect with
internal work in the whole process of a firm and the latter can be explained
as efforts of firms to predict the variation of the market and they should
attain customer needs better than competitors to enjoy high profits and a
sustainable competitive advantage. It is connected with the strategic
orientation of firms to achieve their goals.
Firms would make a strategic choice and change their organizational
structure following environmental uncertainty which they may face. If
there is environmental uncertainty, they would acquire information from
the market through the adoption of an external orientated strategy and then
they would adopt an organic organizational structure to minimize its
effects on performance. Firms which adopt an external orientated
strategy under environmental uncertainty would respond internally to