The moderating effect of external environment on the relationship between market orientation and business performance: a quantitative approach (original) (raw)
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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.
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).
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.
Mediterranean Journal of Social Sciences, 2014
The purpose of this study is to examine the relationship between market orientation and firm performance, with the moderating variable of business environment. The study employed a cross sectional research design, using a structured questionnaire survey with a sample of 640 SMEs fully operational in Kano state, a total of 511 valid questionnaires were completed and returned representing 79.8 percent response rate. The finding from the study shows that the relationship between market orientation and firm performance was found to be insignificant; the relationship between the business environment and firm performance was also not significant also. The result of moderation indicated that the business environment was found to moderate on the relationship between market orientation and firm performance. The finding of this study will benefit owner/managers of SMEs, regulatory agencies, government at all levels and will also serve as a frame to future studies.
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.
Key elements of market orientation on Malaysian SMEs performance
Malaysian Small Medium Enterprises (SMEs) are vital components of the country's economic development. This paper assessed the relationship between market orientation critical success factors and Malaysian SMEs performance. Data were collected via mail survey employing the simple random sampling procedure. A total of 140 SMEs responses to this study. The findings revealed mix relationship among the components of market orientation critical success factors in SMEs performance. Two factors, specifically, customers focus and market dissemination was found to have significant relationships with SMEs performance. On the other hand, the other factors, namely market intelligence and responsiveness did not indicate significant influence on the SMEs performance. Consequently, the result of this study has significant impact to SMEs owners in forwarding organizational excellence. For SMEs to contribute significantly to the realization of the long term business and industrial competitiveness of the country, they need to focus on any activities that related to the market orientation critical success factors.
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.
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.
Dis-Aggregated Effect of Market Orientation on Firm Performance
International Journal of Asian Business and Information Management, 2021
Due to ambiguity in the market orientation and performance relationship, the basic aim of the study to investigate the nature of relationship exists between market orientation and performance of the manufacturing SMEs in India. Data for this study were collected from the 388 managers/owners of SMEs indulged in the manufacturing sector through well-established scales. The utilized scale’s reliability and validity were assessed through CFA, and various hypotheses related to the environmental moderators and innovation mediation was tested. This study is relevant for owners/managers and policymakers responsible for improving the performance of small and medium enterprises, working in the manufacturing sector. The study necessitates the significance of catering express needs of customers to boost up the effect of market orientation on performance. The study tested the relationship between the market orientation and performance relationship at the disaggregated level. The important insigh...
Mediterranean journal of social sciences, 2014
Whilst studies have contributed to the notion that market orientation and its elements drive business performance, very few research efforts has specifically focussed on the relationship between the enablers of market orientation and business performance. The current study provides a succinct relationship between the enablers of market orientation and the relationship with business performance in small and medium enterprises within a South African context. The study was approached from a quantitative paradigm through a structured questionnaire to examine the relationships. Through confirmatory factor analysis and structural equations path modelling, the results established that enablers of market orientation (market-based rewards, interdepartmental cohesion, owners/managers influence and management risk exposure) influence the business performance of SMEs in the region. A significant positive relationship was noted between market orientation enablers and business performance. These variables need to be further unpacked in order to provide synergy and strength for SMEs to survive in competitive environments