Market orientation, entrepreneurial orientation and business performance among small retailers

Abstract

Purpose

The purpose of this paper is to investigate the impact of market orientation (MO) and entrepreneurial orientation (EO) on business performance among small retailers. In particular, the goal is to understand and determine to what extent MO and EO influence firm performance directly, and to what extent MO and EO are connected to performance via marketing capabilities.

Design/methodology/approach

The developed conceptual model is tested using structural equation modelling (SEM) using a sample of 202 small retailers.

Findings

The result of the SEM model shows that both MO and EO act as a basis for improved business performance among small retailers. However, the performance impact of MO and EO is not that straightforward. Based on the research findings, it can be argued that both MO and EO require marketing capabilities to more fully unlock their value-creating potential among small retail firms.

Originality/value

This study has provided new insights regarding the impact of MO and EO on business performance in the context of small retail firms. In particular, the study has contributed to the literature by demonstrating the routes through which MO and EO impact on performance.

Citation

Kajalo, S. and Lindblom, A. (2015), "Market orientation, entrepreneurial orientation and business performance among small retailers", International Journal of Retail & Distribution Management, Vol. 43 No. 7, pp. 580-596. https://doi.org/10.1108/IJRDM-04-2014-0044