Abstract: The aim of this study is to investigate the effect of market orientation on business performance in the presence of customer satisfaction. A sample consisted of 421 employees working in small shops selling mobile devices in Riyadh, the capital city of Saudi Arabia which was randomly selected. The required data was collected using a questionnaire developed based on previous studies. The total number of questionnaires distributed by hand to subjects from Oct. 2016 to Jan. 2017 was 421 questionnaires. Out of these, 377 questionnaires were returned complete and usable for the purpose of the analysis. Market orientation was measured using seven dimensions: customer orientation, competitor orientation, interfunctional coordination, distributor orientation, intelligence dissemination, intelligence generation and responsiveness. Customer satisfaction was measured based on overall satisfaction, expectancy disconfirmation and performance score comparison to a customer ideal. Lastly, business performance was assessed using sales volume, profit and market share. The findings showed that the three conditions of the mediating role of customer satisfaction in the relationship between market orientation and business performance were met. That is, market orientation dimensions are significantly related to both customer satisfaction and business performance. However, the impact of market orientation dimensions on business performance was lessened due to the introduction of customer satisfaction into the regression model. In a word, the results accepted the hypothesis that customer satisfaction mediates the relationship between market orientation and business performance.