Despite significant investments by the Saudi Arabian government to elevate its education to international standards, the outcomes of the higher education system don't align with various stakeholders' expectations. This study examines the key role of market orientation in higher education, a concept less explored in academia compared to the business sector. The research evaluates the impact of top management's emphasis and internal market orientation on the broader market orientation within Saudi's higher education landscape. Additionally, it probes the direct and innovativeness-mediated effects of market orientation on institutions' perceived performance. Data obtained from 263 valid responses to an online questionnaire, underwent exploratory and confirmatory factor analyses to ensure construct validity and reliability. Structural equation modeling further illuminated the relationships, confirming the influence of top management’s emphasis on internal market orientation and its subsequent impact on market orientation. Notably, market orientation showed a direct positive effect on perceived performance, with innovativeness acting as a mediator.

Keywords: Market Orientation, internal-Marketing Orientation, Management Emphasis, Innovativeness.