How the environment affects travel agency performance

Abstract

This research examines the performance of travel agencies in Taiwan by using a market orientation
framework. The study examines the impact of market orientation and financial performance and
identifies the importance of competitive environment in the relationship between market orientation and
financial performance. The study controls for factors associated with the external competitive
environment, and the research model is analyzed using moderated regression analysis (MRA). The
primary data were collected through a questionnaire survey completed by 249 managers of travel
agencies in Taiwan. The results revealed that one element of the competitive environment
(technological turbulence) influences financial performance.