Market Orientation Practices among Micro-Sized Enterprises: A Descriptive Evidence using MKTOR Scale (original) (raw)
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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.
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.
Studying the relationship between Market Orientation and Organizational Performance has become a popular research topic in recent years. However, there is a lack of research conducted related to this topic in Sri Lankan Context. This Research addresses the relationship between Market Orientation and Organizational performance in Small and Medium scale manufacturing organizations in Sri Lanka. Based on the literature review developed four hypotheses that can be tested in this research study. Descriptive research design has undertaken and 240 respondents were in the sample. After developing the questionnaire, conducted a pilot test in order to measure the accuracy of the questionnaire. Data was analyzed by using both smart PLS and SPSS software and Demographic data analysis, CFA and SEM are used to analyze the data and test the hypotheses. Results shows that sub variables of market orientation (Competitor orientation, Inter functional Coordination and Social Benefit Orientation) are positively correlated with Organizational Performance while Customer Orientation is negatively correlated with the Organizational Performance in small and medium scale manufacturing industry in Sri Lanka. Managerial and theoretical implications are made based on the major findings and discussed the importance of the customer orientation for an organization in detail. The research study contributes to the managers for making and implementing market oriented strategies specially highlighting the importance of the customer centric approach. Future researchers can apply NEWMAKTOR model which is developed through this research study to measure the Market Orientation in different contexts.
Market Orientation and Performance of Small Businesses in South Africa
Journal of Economics and Behavioral Studies, 2017
The study focused on identifying the relationship between market orientation and performance of small businesses in Vryburg region of South Africa. It aimed to achieve the following objectives, (1) To determine the level of market orientation among small businesses in Vryburg region of South Africa, (2) To establish if there is any relationship between market orientation and performance of small businesses in Vryburg region of South Africa. The study was exploratory in nature and utilised the quantitative research method with a descriptive research design. 268 questionnaires were distributed to small businesses owners/managers in the Vryburg region of South Africa. 207 questionnaires were returned, 9 questionnaires out of the 207 returned were incorrectly filled. Simple random sampling, a probability sampling technique was used in the study. Data analysis included descriptive statistics, correlation and regression analysis. The Cronbach’s Alpha co-efficient was used to measure re...
International Review of Management and Marketing, 2017
Small and medium business in Indonesia has different characteristics with other countries. This research aims to analyze the influence between the orientation of the market and the business performance of small and medium enterprises. Entrepreneurial orientation variables used as the antecedent of market orientation and business performance as of the variable consequences. Design research using the survey sample and FGD with owners of small and medium enterprises as the respondent. By using SEM analysis found that entrepreneurial orientation effect directly against the performance of the business, but the orientation of the market does not have significant influence on performance of the business.
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.
Journal of Business & Industrial Marketing, 2005
Purpose -Sets out to nvestigate the adoption of and application of the market orientation concept within the small business sector using Michigan, USA, as a study setting. Design/methodology/approach -Following a literature review, a pilot study involving face-to-face interviews with owner-managers, and covert and overt observation of small businesses' marketing practices, was undertaken. The main thrust of the research involved a postal survey based on an adapted market orientation construct. Exploratory and confirmatory factor analyses are employed to assess the reliability of the results. Findings -Reveals four dimensions/factors/strategies underpinning market orientation in the study setting. The paper concludes that the size of the business does not moderate the importance ascribed to, and the application of, the marketing concept (i.e. market orientation).
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.
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.