The Effect of Strategic Orientations on Organizational Performance of Smes: Empirical Evidence from Pakistan (original) (raw)
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International Review of Management and Marketing, 2017
This study aims to empirically demonstrate the relationship of market orientation, learning orientation on innovation and business performance within the scope of the small and medium enterprises (SMEs). Besides, this research also explaines the importance of company’s innovation as a mediating relation to improve business performance. The samples of this study were 155 managers or owners of Meubeller SMEs in the Region of Karisidenan Surakarta. The sampling technique used in this research was purposive sampling. The basic consideration of this research was the experience of the SMEs Meubeller (either the manager or owner) in managing their businesses. The hypothesis testing results showed that market orientation gave positive effect on business performance and innovation of the company. Orientation learning gave positive effect on business performance and innovation of the company. Company’s innovation infl uenced business performance.
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.
POLAC International Journal of Contemporary Accounting & Security Studies, Special Edition November, 2018 ISSN: 2636- 7076, 2018
Abstract Nigerian Small and Medium Scale Enterprises (SMEs) are faced with a lot of challenges which includes, inadequate marketing skills, low entrepreneurial spirit, and poor strategic orientation which may deter a good performance of the SMEs. Therefore, this study ascertained the relationship between strategic orientation and performance of SMEs in North Central Region of Nigeria. Additionally, the study also examined the mediation effect of organizational learning on the relationship between strategic orientation and performance of SMEs. The study thus, considering the Nigerian market assesses the performance of SMEs using a multivariate approach to performance assessment. Specifically, multiple constructs of entrepreneurial orientation, technology orientation, market orientation, organizational learning and SMEs Performance are considered. Data was collected through hand delivery method by sending questionnaire to 440 SMEs managers/owners. Partial Least Squares (PLS) algorithm and bootstrap techniques were used to test the study‘s hypotheses. The results provide support for most of the hypothesized relationships for the study. Specifically, entrepreneurial orientation, market orientation and organizational learning are significantly and positively related to performance of SMEs. On the other hand, technological orientation is insignificantly and negatively related to performance of SMEs. Additionally, entrepreneurial orientation, technology orientation and market orientation are significantly and positively related to organizational learning. Furthermore, the results of mediation indicate that all the three hypotheses are significant. The outcome of this study provides significant contributions to both managers and researchers for further understanding on the effect of strategic orientation and organizational learning on performance of SMEs. As such, organizations should be encouraged to exhibit these strategic orientations for better performance. Managers/entrepreneurs of SMEs should acquire and put into reality sound entrepreneurial orientation and market orientation skills to be able to engage in a more innovative activity in the markets and to place the customers in the center of a firm's strategy and operations Keywords: Entrepreneurial Orientation, Market Orientation, Organizational Learning, Performance, Technology Orientation
This study aims to examine the effect of market orientation (MO) as a mediating variable in the relationship between entrepreneurial orientation (EO) and small and medium enterprises (SMEs)’ performance. Atotal of 500 SMEs in the manufacturing industry of food and beverages were involved in this study with a response rate of 117. Data collection was conducted in all states of Peninsular Malaysia including the northern, central, southern and eastern regions. The findings show that EO has a significant relationship with MO, and MO has a significant relationship with SME performance. MO will mediate the relationship between EO and SMEs’ performance.
Pakistan Journal of Humanities and Social Sciences
The small and medium-sized enterprises (SMEs) plays a crucial part in country’s economic growth and a key contributor in country’s GDP. In Pakistan SMEs hold about 90 percent of the total business. The performance of SMEs depends upon many factors. The main purpose of this research is to examine the relationship between Entrepreneurial Orientation and Market Orientation with SME’s Performance in Pakistan Conclusively, this study proposes a new research direction and proposition development to inspect the relationship among the variables in Pakistan’s SMEs context.
2011
This paper develops a conceptual framework for an intended study which will examine the effect of strategic orientation (SO) on firm performance among SMEs. SO is best described as the strategic directions which are put into practice by a firm to produce continuous superior performance. Although it has been argued that SO has a positive effect on firm performance, the idea of direct relationship between SO and firm performance is universal and too simplistic. Previous studies have identified several components of SO but this paper aims to take an integrative perspective of market orientation, entrepreneurial orientation and interaction orientation and their relationship with firm performance.
2018
The purpose of this research is to analyze the influence of organizational learning and entrepreneurship orientation on SME business performance in Minneapolitan area South Sulawesi. This research is a survey research using quantitative approach with sample of 150 SMEs in 5 regencies and cities in Minneapolitan area in South Sulawesi. Data collection using questionnaires as a means of collecting data and conducting direct interviews and library searching. The results of data analysis found that organizational learning and entrepreneurial orientation did not directly affect the performance of SMEs in the Minnepolitan area but indirectly influenced by market orientation variables. The results of the analysis indicate that SMEs business performance in Minneapolitan area in South Sulawesi can be developed through organizational learning and entrepreneurial orientation but must use market orientation as a focal point in the empowerment of SMEs. Key words : Organizational learning, entrep...
Market Orientation and Organizational Performance: Empirical Evidence from Smes Malaysia
LABUAN E-JOURNAL OF MUAMALAT & SOCIETY, 2009
The purpose of this research is to investigate the relationship between market orientation and performance and its effects on the overall organizational performance of the Malaysian SMEs industry. Using the Malaysian SMEs industry's as a primary research target, this study will use the ''contingency-structure-output'' framework (Fiedler, 1967). Employing factor analysis and the Linear Structural Relations method for verification, we hope the results will contribute something important since we postulate that there is a significant relationship between market orientation and organizational performance. We argue that the degree of SMEs market orientation will depend on nine sets of antecedents (Jaworski and Kholi, 1993). Besides, the relationship between SMEs market orientation and performance is hypothesized to be moderated by environmental factors (Narver and Slater, 1994).
2nd International Conference on Business & Entrepreneurship, Supply Chain Management & Information Systems, Alexandria, Egypt, 2017
Purpose: This research aims to examine the mediating role of innovation between market and learning orientations and organization performance in small and medium enterprises (SMEs) as well as examining culture role to enhance the relationship between innovation and performance. Design: A questionnaire is designed with number of statements about each dimension for the purpose of data collection. A number of 80 respondents of Egyptian enterprises are collected and data analysis is done using SPSS, where correlation and regression analysis are constructed to figure out results of hypotheses testing. Findings: Results showed a significant change in Innovation with different Market Orientation groups,as well as a significant impact of Innovation on Organization Performance. Also, it was found that there is a significant role of culture as a moderator between Innovation and Performance.
Strategic Orientation Based Research Model of SME Performance for Developing Countries
Review of Integrative Business and Economics Research, 2013
Performance of Small and Medium Enterprises (SMEs) has been considered as one of the most important driving force behind economies of both developed and developing countries due to their multiple contributions. In most of the developing countries, the performance of the SMEs is a key issue today. Strategic orientation of SMEs is one of the most critical factors for their success. The SMEs in developing countries are considered less strategically oriented than those of developed counties. But most of the studies in developing countries have focused the effect of single strategic orientation coupled with other factors on SME performance. This study proposes a research model of SME performance based on strategic orientation for developing countries. The proposed model suggests significant interaction between three major strategic orientations and SME performance in developing countries. An interaction among market orientation, entrepreneurial orientation, learning orientation and SME performance has been incorporated into the model. The model contributes for better understanding of complex interactions between strategic orientations and SME performance in developing countries.