In the Republic of Croatia city governments operate in the environment that does neither commit nor recommend activities for greater users’ satisfaction with local public services. In addition, the problem of the research conducted for the purpose of this doctoral thesis represents the level of city governments’ understanding of the need for more efficient and effective functioning due to serving to citizens and other stakeholders, especially in the context of a perceived local self-government monopoly. The subject of this thesis represents levels of adoption of market orientation, that is, acceptability of the marketing concept, which is investigated in relation to key groups of stakeholders in Croatian city governments. Qualitative research recognized the following nine groups: citizens, local entrepreneurs and private investors, civil society, tourists and visitors, ministries in charge, Government (incl. Parliament), public companies, pertaining counties, other units of local self-government (competitors) and employees of city governments. Higher levels of market orientation also mean better generation and successful dissemination of information to persons in charge of creating market-oriented reactions formed specifically towards each group of stakeholders. However, for efficient and effective operation of city governments, entrepreneurial orientation is also needed in order to look for resources proactively, provide innovative solutions for users or initiate development projects, accompanied by acceptable risk level. The results of the research of both constructs show the average level of market and entrepreneurial orientation of city governments in the Republic of Croatia. Therefore, it was determined that all three components of market orientation - generation, dissemination and market-oriented reaction to information represent significant and mutually connected parts of the construct, accompanied by the highest correlation between key components - marketoriented reaction and overall market orientation. Demonstrating the average level of market orientation intensity towards all groups of stakeholders also proved to be an important understanding. It has been also determined that intensity towards a certain group of stakeholders depends on the relevance of a group to a specific city government. The research confirmed the hypotheses that market and entrepreneurial orientation in Croatian city governments has a positive impact on subjectively measured organizational performanse and user performanse, that is, user satisfaction. Also, it is possible to infer from the research that entrepreneurial orientation has a positive influence on the level of market orientation of city governments, that is, that adopting both concepts produces synergistic effects.