The effects of marketing and market orientation on economical and financial performance in portuguese SME (original) (raw)
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Marketing activities, market orientation and other market variables influence on smes performance
2012
This paper includes results on marketing, market orientation degree and environmental variables, such as competitive intensity and market turbulence, that can influence economic and financial performance of micro and small companies. The results indicate that: (a) marketing is seen by these companies as secondary, deserving minor practical actions that can be considered strategic, (b) at market orientation level, the market information affects positively performance indicators, (c) and economical and financial performance is superior in conditions of highly market turbulence and there is a negative relationship between competitive intensity and the companies ratio turnover/total assets.
A Micro Level Analysis of the Market Orientation – Small Business Financial Performance Nexus
The critical role small enterprises play in economic growth of developing economies has been recognised. Policy makers have therefore initiated policies and programmes to promote their growth and sustainability. Despite the important roles they play in the Ghanaian economy their financial performance has not been impressive due to the orientation of their marketing strategies. The paper seeks to explore the influence of market orientation on financial performance of small businesses. Simple random sampling was used to select three hundred and thirtytwo owner/managers of small firms in the Takoradi metropolis. In addition, factor analysis, correlation coefficient and regression analysis were used to examine the data collected. It was found that there is a positive relationship between marketing orientation and its constituents and financial performance of small businesses. It is recommended that owner/managers adopt the culture of market orientation since it can impact on their financial performance. Also, policymakers and business development services providers should emphasise on the marketing orientation strategy as part of their advisory services.
Market orientation and business performance: An analysis of panel data
The effect of market orientation on business performance has been extensively researched over the past two decades with authors generally agreeing on its positive outcome. It appears however that previous studies placed much emphasis on its applications in large scale organizations. Only recently have researchers begun to publish articles on the patterns of market orientation in small and medium scale organizations (SMEs) . Even so, it seems that researchers are yet to reach a common ground on the appropriateness of this management toolkit to SMEs. This study argues that it is in this sector that firms need to be more customer focus, monitor competitive trends, and respond appropriately to market intelligence in order to survive given evidence of their financial, technical and other constraints. Following an adoption of two popular scales in the literature, the study investigated the market orientation-performance link among Ghanaian SMEs using a survey to collect data on 191 firms. Results show that the development of market orientation in this sector rests more on the attitude of owners/ managers and, more importantly, the repeatedly reported performance implication of market orientation does not elude Ghanaian SMEs. More specifically, market orientation leads to superior performance under ceaseless competitive conditions. Conclusions are drawn; the limitations and directions for further investigations of the construct are provided.
Journal of Applied Business Research, 2015
Expansion, diversification, greater choice, market share, profits and increased competition are the "overarching forces" that drive organisations to embrace marketing concepts such as market orientation. Various researchers assert that market orientation is a vital marketing concept for the performance of businesses and for small and medium enterprises (SMEs) there are no exceptions. The study examines the relationship of the determinants and barriers to market orientation and the influence of market orientation on business performance among SMEs in a developing country. This cross-sectional study made of a quantitative survey design. The target population comprised 273 owners/managers of SMEs in the Vaal Triangle, South Africa. The results revealed that the determinants of market orientation exhibited a strong influence in market orientation. Market orientation in turn showed strong positive relationship with business performance. Barriers to market orientation showed strong negative relationship with market orientation. The study identified the constructs that foster or discourage market orientation, and the contribution that market orientation can have on business performance for SMEs. SMEs owner/mangers are encouraged to consider the market orientation constructs that positively influences the performance of their businesses.
International Journal of Academic Research in Business and Social Sciences, 2014
The objective of this study is to investigate the relationship between market orientation and business performance of small and medium enterprise (SMEs) in Nigeria. A quantitative method was used, employing a cross-sectional research design. The data were collected through the self-administration method from 320 respondents¸ using a structured questionnaire, a total of 212 valid questionnaires was completed and returned representing 66 percent response rate. SMEs are very important to the economic growth of Nigeria, they serve as a major source of employment, contributes toward local resource utilization, a source of entrepreneurship development, an avenue for the conservation of foreign exchange, ensures equitable distribution of income and wealth and help in the preservation of cultural heritage. A model was developed based on theoretical reflection to examine the relationship. Smart PLS is used in the data analysis, which reported a significant and positive relationship between the market orientation and business performance of SMEs. The findings of this study will benefit owner/managers of SMEs, regulatory agencies, government at all levels and will also serve as a frame of reference for future studies, and future research directions were discussed.
Market orientation in the context of SMEs: A conceptual framework
Journal of Business Research, 2011
A number of studies in the marketing literature have examined the construct of market orientation (MO). These studies generally show a positive link between MO and organizational performance. This paper examines MO specifically in the context of small and medium sized enterprises (SMEs). An in-depth review of the extant literature is used to develop a conceptual framework by exploring the major antecedents of MO, the MO-Performance relationship, and the key mediators and environmental moderators of this relationship. This paper also examines several studies on SMEs with respect to various aspects of this framework and offers suggestions for future research in order to understand more thoroughly how MO influences SME performance.
The proposed study investigates the relationship between market orientation and the performance of small and medium-sized enterprises (SMEs) in Zamfara State, Nigeria. Market orientation, comprising customer orientation, competitor orientation, and interfunctional coordination, is posited to influence both financial and non-financial performance outcomes. The study aims to assess how these dimensions collectively impact SMEs' operational efficiency, adaptability, and competitiveness within a resource-constrained and underdeveloped context. Grounded in Market Orientation Theory (MOT), the study seeks to fill gaps in the literature by examining the application of market orientation in developing economies. It also integrates multidimensional performance metrics to provide a comprehensive understanding of SME performance, including stakeholder perceptions of productivity, cost-effectiveness, and responsiveness to market demands. The findings are expected to reveal how SMEs can leverage customer information, respond effectively to competitive pressures, and foster internal collaboration to improve their performance. The study will also provide practical recommendations for policymakers and support organizations to create an enabling environment for SMEs to adopt market-oriented strategies. These include capacity-building programs, infrastructure development, and access to market intelligence. This research contributes to both theory and practice by contextualizing market orientation in a less-developed setting and offering actionable information for SME growth and sustainability. By addressing the unique challenges faced by SMEs in Zamfara State, the study underscores the transformative potential of market orientation as a strategic approach to enhance firm performance and drive economic development in similar regions.
Market orientation and Organizational culture's impact on SME Performance: A SEM Approach
International Affairs and Global Strategy, 2014
The purpose of this study is to examine the relationship between market orientation and organizational culture on small and medium enterprise performance (SMEs). A quantitative approach was employed, using a crosssectional research design. The data were collected through the self-administration method from 640 respondents. SMEs are very important to the economic growth of Nigeria, they serve as a major source of employment, contributes significantly towards the industrial establishment, a source of capital formation, an avenue for the production of intermediate goods and help in the development of craftsmanship. A model was developed based on theoretical consideration to examine the relationship. Structural Equation Modelling (SEM) was employed, which reported a significant and positive relationship between the market orientation and business performance of SMEs. Whereas, the association between organizational culture and business performance was not supported. Implications and future research directions were discussed. 1.Introduction Small and medium enterprises are important avenues for job creation and a powerful source for innovation (Dauda & Akingbade, 2010, Shehu & Mahmoud, 2014a). SMEs plays a significant role in sustainable socioeconomic development of a given country in terms of contribution to GDP, provision of employment, generation of wealth, poverty reduction, competence building and enriching the welfare of people through the provision of goods and services including education (Kanyabi & Devi,2011). SMEs in Nigeria has been an avenue for Job creation and empowerment of citizens proving about 70% of all job opportunities and also for wealth formation (Shehu & Mahmoud, 2014b). The sector had its own share of problems as identified by (Oluboba, 2002). which includes: poor market orientation, low level of entrepreneurial skills, poor management policies, societal and attitudinal problems, constrained access to money and capital markets, low equity participation from the promoters because of insufficient personal savings due to their level of poverty and low return on investment, inadequate equity capital, poor infrastructural facilities, high rate of enterprise mortality, shortage of skilled manpower, multiplicity of regulatory agencies, societal and attitudinal problems, bureaucracy, integrity and transparency problems, lack of access to information given that it is costly, time consuming and difficult at times. Therefore, the paper is organized as follows: section two provides the problem statement; section three is about the literature review, the next section discuses methodology, including research design, population and sampling technique, and the measurement of variables; section five lament on the conclusion and recommendations; section six provides the limitations, direction for future studies and the implications for the study. 2. Problem Statement Several studies have been conducted on the market orientation to performance relationship, but there exists a mixed finding. Some of the studies that reported a positive and significant relationship between the two constructs includes