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The journey from market orientation to firm performance

Author

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  • Mike Chen‐Ho Chao
  • John E. Spillan

Abstract

Purpose - This paper aims to investigate the link between market orientation and performance of US and Taiwanese small‐ and medium‐sized enterprises (SMEs). This study is primarily centred on empirically investigating two issues: test the effectiveness of MARKOR (a widely used market orientation measure developed by Kohliet al.) in US and Taiwanese SME contexts, and investigate the factors influencing US and Taiwanese SMEs’ performance. Design/methodology/approach - This study's participants were owners or managers from 138 SMEs located in three states in the USA (i.e. Maryland, New York, and Pennsylvania) and 151 SMEs located in Taiwan. A survey was created to collect data: market orientation scale items used in this survey were mainly adopted from MARKOR; performance scale items were adopted directly from previous studies. Structural equation modelling was employed to analyse the data collected. Findings - This study finds that neither US and Taiwanese SMEs’ intelligence generation, nor intelligence dissemination had a significant relationship with their firm performance. However, the findings do indicate that there was a significantly positive link between US and Taiwanese SMEs’ responsiveness and their firm performance. Originality/value - In almost all previous studies in this field, the primary emphasis has focused on the market orientation of large businesses. Research on market orientation in SMEs has been scarce. Hence, this paper contributes to the extant literature by changing the research direction and studying market orientation in SME context. In addition, this paper provides SME managers with a more understandable guide to specific market‐oriented activities.

Suggested Citation

  • Mike Chen‐Ho Chao & John E. Spillan, 2010. "The journey from market orientation to firm performance," Management Research Review, Emerald Group Publishing Limited, vol. 33(5), pages 472-483, April.
    • Handle: RePEc:eme:mrrpps:v:33:y:2010:i:5:p:472-483
    DOI: 10.1108/01409171011041901
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    Citations

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    Cited by:

    1. Nourhan Ah. Saad & Sara Elgazzar & Sonja Mlaker Kac, 2022. "Investigating the Impact of Resilience, Responsiveness, and Quality on Customer Loyalty of MSMEs: Empirical Evidence," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    2. Yosef Budi Susanto, 2019. "The Impact of Market Orientation and Dynamic Marketing Capability on the Marketing Performance of 'Make-To- Order' SMEs," GATR Journals jmmr222, Global Academy of Training and Research (GATR) Enterprise.
    3. Hendar Hendar & Ferdinand Augusti Tae & Nurhayati Tatiek, 2017. "Introducing the religio-centric positional advantage to Indonesian small businesses," Management & Marketing, Sciendo, vol. 12(1), pages 78-102, March.
    4. repec:ipg:wpaper:2014-432 is not listed on IDEAS
    5. Chee-Hua Chin & May-Chiun Lo & T. Ramayah, 2013. "Market Orientation and Organizational Performance," SAGE Open, , vol. 3(4), pages 21582440135, November.
    6. Edem Korku Agbobli & Olabanji Oni & Olawale Fatoki, 2017. "Market Orientation and Performance of Small Businesses in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(5), pages 135-143.
    7. Lopes de Sousa Jabbour, Ana Beatriz & Ndubisi, Nelson Oly & Roman Pais Seles, Bruno Michel, 2020. "Sustainable development in Asian manufacturing SMEs: Progress and directions," International Journal of Production Economics, Elsevier, vol. 225(C).

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