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Open Access
Article
Publication date: 10 January 2022

Kassimu Issau, Sanjay Soni and Innocent Senyo Kwasi Acquah

This research examines the interrelationships between market orientation (MO) and entrepreneurial orientation (EO) in the small- and medium-sized enterprise (SME) sector. Due to…

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Abstract

Purpose

This research examines the interrelationships between market orientation (MO) and entrepreneurial orientation (EO) in the small- and medium-sized enterprise (SME) sector. Due to the conflicting results associated with each orientation's influence on firm performance, some researchers advanced that scholars should resort to concurrent observation of the constructs. To the researchers, concurrent deployment of the constructs by businesses is likely to result in an enhanced performance. However, what is lacking in their proposition is how the deployment of these resources should be, thereby leading to a knowledge gap in the literature. The aforementioned gap is what this paper seeks to address.

Design/methodology/approach

The study employed deductive research approach, and data were collected from 366 SMEs' owners or owner-managers of SMEs in two metropoles in Ghana. For this study, the hand delivery and collection of questionnaire technique was deployed. The reason is that most respondents may be reluctant to respond to the questionnaires through the post or Internet. Partial least square-structural equation modelling (PLS-SEM) was employed for the data analysis due to its importance in allowing the testing of relationships among constructs. Furthermore, seven-point Likert scale was used to generate responses from the respondents.

Findings

The result indicates that MO and EO have a positive and significant influence on each other. However, the influence of EO on MO is greater. Therefore, when owners of SMEs are embracing the two constructs in their businesses, EO should precede MO. The finding is a novelty of this study. Through this result, the owners of SMEs would have knowledge of embracing EO before MO during the employment of the two constructs in their firms. The study further revealed that not all the components of MO have positive and significant influence on EO, and the reverse is true. Without this study, the owners of SMEs would have placed equal attention on each construct and their components. The study also indicates that deployment of MO in its composite form rather than components is the best way for improving EO.

Practical implications

The more SMEs engage in MO activities, the likelihood of an increase in their entrepreneurial spirit and the opposite is true. However, engaging in more EO activities would result in higher MO than the reverse.

Originality/value

The findings add to the empirical literature by revealing the interrelationships between MO and EO, which serve as a guide to owners of SMEs and practitioners in their concurrent deployment of the two constructs. The findings would also open replication doors for future researchers in different settings.

Details

Revista de Gestão, vol. 29 no. 2
Type: Research Article
ISSN: 1809-2276

Keywords

Open Access
Article
Publication date: 2 June 2021

Marcelo Royo-Vela, Juan Carlos Amezquita Salazar and Francisco Puig Blanco

This paper aims to address research gaps with regard to the relationship between market orientation and marketing performance when small- and medium-sized enterprises (SMEs) are…

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Abstract

Purpose

This paper aims to address research gaps with regard to the relationship between market orientation and marketing performance when small- and medium-sized enterprises (SMEs) are located within a service cluster. The three main objectives of this research are to determine the effect that the cluster can have on both the market orientation of clustered companies and their marketing performance and to furthermore evaluate the effect of the market orientation of companies in the cluster on their marketing performance.

Design/methodology/approach

This research used executive-level data that were obtained by carrying out a survey involving a unique dataset of 133 Colombian health-related businesses located in the city of Cali (Colombia) in 2014. A system of equations was modeled using SMART PLS. This analysis was complemented by a qualitative study that involved conducting in-depth interviews in six companies.

Findings

The results showed that, among the SMEs, membership in an urban services cluster did not significantly influence marketing performance or the implementation of marketing orientation practices. No differences were observed in internal managerial practices implemented between companies that were co-located and isolated. However, a higher level of competitor orientation was associated with greater marketing performance. Given the verified absence of moderating and mediating effects, our work provides a reasonable basis for proposing future research and practical recommendations.

Originality/value

While research has demonstrated the relationship between a company's market orientation and marketing performance, this type of analysis has not been carried out on service SMEs in geographic concentrations or clusters.

研究目的

本文旨在處理涉及市場導向與營銷績效間的關係的研究缺口. 當中小型企業處於服務群集內, 市場導向與其營銷績效間存在相互關係;本文旨在處理涉及這關係的研究缺口. 本研究有以下的主要目標:(1)找出群集對群集公司的市場導向及其營銷績效兩者的影響;(2)繼而評估在群集內公司的市場導向對其營銷績效的影響.

研究方法

本研究使用透過進行一項調查而取得的管理階層數據,而這調查涉及於2014年位於卡利市(哥倫比亞)133間與健康衛生有關的哥倫比亞企業的獨特資料集。一個方程式體系透過使用SmartPLS被模擬出來. 這分析有個補充輔助,就是一個涉及在六間公司內進行的深層訪談的質性研究.

研究結果

研究結果顯示,就有關的中小型企業而言,擁有城市服務群集身份並沒顯著地影響營銷績效或市場導向慣常做法的施行。對處於同一地點的公司,抑或是隔離的公司,其內部施行的管理慣常做法並沒觀察到有所不同。但是,高水平的競爭者導向與更佳的營銷績效兩者是相關的。考慮到調節及仲介效果被證實不存在,我們的研究為日後研究及實際建議的提出提供合理的基礎.

研究的原創性

從前的研究證實了公司的市場導向與營銷績效是相關的,唯這類研究分析從來沒有在地理集中或群集內的服務中小型企業上進行過.

Details

European Journal of Management and Business Economics, vol. 31 no. 1
Type: Research Article
ISSN: 2444-8451

Keywords

Open Access
Article
Publication date: 30 May 2018

Nguyen Phong Nguyen

Drawing upon the resource-based view and the contingency theory, the purpose of this paper is to build and test a framework of: the interaction between market orientation (MO) and…

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Abstract

Purpose

Drawing upon the resource-based view and the contingency theory, the purpose of this paper is to build and test a framework of: the interaction between market orientation (MO) and accountants’ participation in strategic decision making; and its subsequent effect on the use of management accounting systems (MASs), which, in turn, enhances firm performance.

Design/methodology/approach

The hypotheses were empirically tested using partial least square-structural equation modeling with survey data from 171 large business firms in Vietnam. The standardized root mean squared residual value of the composite model was also examined using SmartPLS3 to test the model fit. The marker-variable technique was employed to test common method bias.

Findings

This study has two key findings: first, the use of MAS (in terms of broad scope, timeliness, aggregation, and integration) mediates the effect of MO on firm performance. Second, the degree of accountants’ participation in strategic decision making elevates the positive relationship between MO and the use of MAS.

Originality/value

This study is one of the first empirical attempts to test the contingent roles of accountants’ participation in strategic decision making and the use of MAS information in driving performance of market-oriented firms in the context of a transition market.

Details

Journal of Asian Business and Economic Studies, vol. 25 no. 1
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 16 February 2021

Agneta Sundström, Akmal S. Hyder and Ehsanul Huda Chowdhury

The aim of this study is to develop and evaluate a market-oriented business model (MOBM) and analyze how it contributes to internationalization of SMEs' disruptive innovation.

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Abstract

Purpose

The aim of this study is to develop and evaluate a market-oriented business model (MOBM) and analyze how it contributes to internationalization of SMEs' disruptive innovation.

Design/methodology/approach

Based on market orientation literature, an MOBM is developed and assessed through collaboration among companies, researchers and networking partners. For the evaluation of the model, qualitative data was collected through workshops, interviews and participatory observations at four case SMEs. Methodologically, the implementation of the MOBM consists of a systematic knowledge development process by following four work packages to support the companies' market-oriented internationalization.

Findings

The results show that SMEs face internal barriers to developing innovativeness that hinder them from creating effective disruptive innovation for the international buyer chain. The study finds that SMEs need to work with an MOBM for developing market intelligence within the organization and seek external support for entering the international market.

Practical implications

The methodological strength allows application, evaluation and modification of the MOBM in close collaboration with the SMEs that directly benefit from its implementation. Modifying the principles of market orientation by practical application, SMEs can apply the MOBM to analyze their internationalization capacity for high-tech disruptive innovations.

Originality/value

This article contributes to new thinking by introducing market orientation to SMEs' internationalization of disruptive innovation. The study highlights the less researched field of disruptive innovation by developing the MOBM to deal with SMEs' internationalization.

Details

Marketing Intelligence & Planning, vol. 39 no. 5
Type: Research Article
ISSN: 0263-4503

Keywords

Open Access
Article
Publication date: 10 February 2020

Cristina I.M.A.S. Fernandes, João J.M Ferreira, Carla Azevedo Lobo and Mario Raposo

A key point in the internationalisation process of companies comes with the choice of international market. Following this choice, the results companies may thereby obtain help in…

6794

Abstract

Purpose

A key point in the internationalisation process of companies comes with the choice of international market. Following this choice, the results companies may thereby obtain help in measuring their level of international performance. This study aims to measure the impact of internationalisation processes in keeping with company market orientations (MOs) through measuring their effect on international performance.

Design/methodology/approach

The authors obtained the data from a questionnaire sent out by email to a total of 8,103 exporting companies and/or with interests in exporting (the study population) registered in the AICEP-Portugal Global database that provided the email addresses of the company representatives responsible for internationalisation. The authors received a total of 320 valid responses (sample).

Findings

The results display a positive MO effect both on internationalisation processes and on international performance. The authors also note the importance of studying the influence of strategic orientations on internationalization processes, motivated by the particular SME’s characteristics.

Originality/value

The authors aim to contribute to the study of the influence of the MO, both upstream and downstream, thus seeking to verify its impact on internationalization processes.

Details

Review of International Business and Strategy, vol. 30 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

Open Access
Article
Publication date: 2 September 2019

Robert Kwame Dzogbenuku and Solomon Abekah Keelson

This paper aims to examine the interconnection between marketing and entrepreneurship among small and medium scale enterprises in emerging markets.

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Abstract

Purpose

This paper aims to examine the interconnection between marketing and entrepreneurship among small and medium scale enterprises in emerging markets.

Design/methodology/approach

Quantitative data were obtained from 113 micro, small and medium scale enterprises (SME) into services, manufacturing and agriculture selected conveniently within the Tema metropolis, a harbour city in Ghana; however, purposive sampling was used to choose owners and managers as respondents pre-occupied with marketing and entrepreneurial roles. These voluntary informants have operated between 4 and 9 years.

Findings

The study reveals a significant relationship between five dimensions of the study including market orientation and entrepreneurial success; customer orientation and entrepreneurial success; competitor orientation and entrepreneurial success; intelligence generation; and entrepreneurial success, including information dissemination and entrepreneurial success.

Research limitations/implications

Blending marketing with entrepreneurial initiatives has the propensity to accelerate success for wealth and job creation for national development especially in emerging markets where poverty and under development abounds. Adoption of basic marketing principles enables local entrepreneurs to become vehicles for social re-engineering and for rapid socio-economic growth, which ultimately affects lives at the local level. The study was limited to opinion of SME managers and owners of a harbour city.

Practical implications

Application of basic marketing principles influences entrepreneurial success in emerging markets (EMs) highlighting opinions of managers and owners of SMEs strategy warranting attention of stakeholders. Thus, the study validates theoretical model of how prudent marketing and entrepreneurial attitude contributes entrepreneurial success. It also provides a new perspective on marketing principles and success in emerging markets.

Social implications

Consciously incorporating basic marketing principles into operations of MSMEs will impact performances; hence, social lives of entrepreneurs will be affected positively.

Originality/value

This study being among the few in sub-Saharan Africa highlights how application of marketing principles to entrepreneurial operations is a vital role in growing local MSMEs unto the world stage. Therefore, blending basic marketing principles with entrepreneurial initiatives will accelerate wealth and job creation and national development to achieve the world's sustainable development goals aimed at reducing poverty.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 13 no. 2
Type: Research Article
ISSN: 2398-7812

Keywords

Open Access
Article
Publication date: 6 June 2020

Pi-Shen Seet, Noel Lindsay and Fredric Kropp

This study presents and validates a theoretical model linking individual characteristics of the founding or lead innovative entrepreneur of a start-up venture – the entrepreneur's…

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Abstract

Purpose

This study presents and validates a theoretical model linking individual characteristics of the founding or lead innovative entrepreneur of a start-up venture – the entrepreneur's values, entrepreneurial attitudes and entrepreneurial self-efficacy – to the firm's entrepreneurial orientation (EO) and market orientation (MO) and, ultimately, to firm performance.

Design/methodology/approach

We conducted a survey on a stratified random sample of founders of early-stage South Australian micro- and small enterprises with a response rate of 24% (N = 204). Structural equation modelling was used to evaluate the model.

Findings

The study found that there is a significant relationship between the individual lead entrepreneur and firm strategies developed in early-stage firms in explaining firm performance. It also found that internal values are positively related to entrepreneurial attitude. Entrepreneurial attitude is positively related to entrepreneurial self-efficacy and EO innovativeness. In turn, entrepreneurial self-efficacy is related to innovativeness, proactiveness and risk-taking. The proactiveness dimension of EO and entrepreneurial attitude is related to MO. Entrepreneurial self-efficacy, innovativeness and MO are related to firm performance.

Research limitations/implications

This research was limited to entrepreneurial ventures in South Australia and may lack generalisability in other states and countries.

Originality/value

The research contributes to the understanding of the heterogeneity within self-employed individuals, in particular among innovative entrepreneurs, by expanding insights regarding antecedents and consequences of the entrepreneurial process. It develops insights into the links of individual-level constructs with firm-level constructs to develop a more meaningful understanding of new venture creation and performance. It enhances our knowledge of the heterogeneity within the group of self-employed by exploring the individual entrepreneurial antecedents of performance in early-stage firms.

Open Access
Article
Publication date: 20 August 2020

Agneta Sundström, Akmal S. Hyder and Ehsanul Huda Chowdhury

The purpose of the study is to identify and analyze critical mediating and moderating market intelligence challenges faced by the SMEs when implementing corporate social…

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Abstract

Purpose

The purpose of the study is to identify and analyze critical mediating and moderating market intelligence challenges faced by the SMEs when implementing corporate social responsibility (CSR) based on an applied market-oriented business model (MOBM).

Design/methodology/approach

Focusing on developing CSR-integrated market intelligence, this study uses an action research method by analyzing four case studies. Data is collected through interviews, interactive and knowledge-sharing meetings and on-site observations. The study is part of a larger European Union project using the developed MOBM to follow the four companies' CSR implementation and learning process over a 14-month period. The action research includes seven meetings; between these, the researchers introduced the SMEs to different business focus areas, where CSR is a vital part of the MOBM.

Findings

This study shows that the SMEs are too technology-focused and have little initial idea of how to integrate CSR advantages for market intelligence into their internationalization. The MOBM model offers insights and knowledge on the strength and weakness of the internal organization to meet challenges in internationalization.

Originality/value

Via case study and action research, this study spotlights the challenges that SMEs face in the CSR implementation process and how they deal with those challenges to develop market intelligence competence internally. Instead of following a traditional research approach, the current study applies a CSR-based method where the SMEs go through a knowledge development process that originated from a theoretically designed MOBM.

Details

Baltic Journal of Management, vol. 15 no. 5
Type: Research Article
ISSN: 1746-5265

Keywords

Open Access
Article
Publication date: 7 March 2023

Sho Yuki and Tomokazu Kubo

Previous studies have found that a proactive market orientation (PMO) has a positive effect on product differentiation and innovation and that the effect is contingent on various…

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Abstract

Purpose

Previous studies have found that a proactive market orientation (PMO) has a positive effect on product differentiation and innovation and that the effect is contingent on various factors. However, the influence of logistics on the positive relationship between PMO and product differentiation has received scant attention in marketing research. To fill this research gap, this paper aims to introduce the concept of postponement as a basic logistics strategy, currently used by many firms, and examine the interaction effect of PMO and postponement on new product differentiation.

Design/methodology/approach

Drawing on the exploration–exploitation literature, the authors considered PMO and postponement as types of exploration and exploitation, respectively. The authors hypothesized that postponement hampers the positive effect of PMO on product differentiation. The authors tested the hypotheses empirically by applying ordinary least squares regression to a sample of 187 brand managers in the Japanese apparel industry.

Findings

PMO is positively related to product differentiation, although the relationship is weakened when design and production systems are postponed, that is, when postponement hinders product differentiation.

Originality/value

Previous studies have examined market orientation and postponement (logistics) separately. However, referring to the exploration–exploitation literature, the authors built a conceptual and empirical bridge between market orientation and logistics management and proposed that this configuration is important for product differentiation.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 16 December 2022

Ismail Juma Ismail

The combination of strategic orientation and digitalization for sustainable competitive advantage among small businesses is still not given much…

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Abstract

Purpose

The combination of strategic orientation and digitalization for sustainable competitive advantage among small businesses is still not given much attention in the literature. Therefore, this study aims to understand the influence of strategic orientation on sustainable competitive advantage while mediating the relationship with digitalization.

Design/methodology/approach

This study used a cross-sectional design. This design helped collect data from 234 small businesses in Arusha city, Tanzania. Since the study used latent variables, structural equation modeling (SEM) was used to analyze relationships and conduct confirmatory factor analysis. Through bootstrapping confidence intervals, Hayes's Process was also used to test how digitalization mediates the relationship between strategic orientations and sustainable competitive advantage.

Findings

The strategic orientation attributes that include market orientation, entrepreneurial orientation and learning orientation were positively and significantly related to digitalization. Furthermore, the results on digitalization and sustainable competitive advantage show a significant positive relationship. Finally, digitalization was analyzed to mediate the relationship between strategic orientation, market orientation, entrepreneurial orientation, learning orientation and sustainable competitive advantage. Hence, all hypotheses were supported.

Research limitations/implications

This study adopted a cross-sectional design that helped to capture the quantitative information. In addition, the current study is limited to Tanzania's small businesses; thus, the findings cannot assure generalization of the conclusion to other countries because of the differences in social, cultural and technology across countries.

Originality/value

This study integrates the concepts of strategic orientation from the strategic management discipline and digitalization from a technology perspective. As a result, the study adds new knowledge about combining two aspects and determining whether they add value in terms of providing a sustainable competitive advantage. This knowledge comes from digitalization, which acts as a mediator between strategic orientation dimensions and a sustainable competitive advantage.

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