IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v4y2014i9p219-232.html
   My bibliography  Save this article

An Empirical Analysis of Market Orientation and Business Performance Relationship in the Context of Developing Economy

Author

Listed:
  • Aliyu Mukhtar Shehu
  • Rosli Mahmood

Abstract

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.

Suggested Citation

  • Aliyu Mukhtar Shehu & Rosli Mahmood, 2014. "An Empirical Analysis of Market Orientation and Business Performance Relationship in the Context of Developing Economy," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(9), pages 219-232, September.
    • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:9:p:219-232
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/An_Empirical_Analysis_of_Market_Orientation_and_Business_Performance_Relationship_in_The_Context_of_Developing_Economy2.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/An_Empirical_Analysis_of_Market_Orientation_and_Business_Performance_Relationship_in_The_Context_of_Developing_Economy2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gainer, Brenda & Padanyi, Paulette, 2005. "The relationship between market-oriented activities and market-oriented culture: implications for the development of market orientation in nonprofit service organizations," Journal of Business Research, Elsevier, vol. 58(6), pages 854-862, June.
    2. Slater, Stanley F. & Narver, John C., 2000. "The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication," Journal of Business Research, Elsevier, vol. 48(1), pages 69-73, April.
    3. Aliyu Mukhtar Shehu & Rosli Mahmood, 2014. "Influence of Entrepreneurial Orientation and Business Environment on Small and Medium Firm Performance: A PLS Approach," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 4(4), pages 1-8.
    4. Naruanard Sarapaivanich & Bernice Kotey, 2006. "The Effect Of Financial Information Quality On Ability To Access External Funds And Performance Of Smes In Thailand," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 14(03), pages 219-239.
    5. Hooley, Graham & Cox, Tony & Fahy, John & Shipley, David & Beracs, Jozsef & Fonfara, Krzysztof & Snoj, Boris, 2000. "Market Orientation in the Transition Economies of Central Europe:: Tests of the Narver and Slater Market Orientation Scales," Journal of Business Research, Elsevier, vol. 50(3), pages 273-285, December.
    6. Harris, Lloyd C. & Ogbonna, Emmanuel, 2001. "Strategic human resource management, market orientation, and organizational performance," Journal of Business Research, Elsevier, vol. 51(2), pages 157-166, February.
    7. repec:aer:wpaper:16 is not listed on IDEAS
    8. Haugland, Sven A. & Myrtveit, Ingunn & Nygaard, Arne, 2007. "Market orientation and performance in the service industry: A data envelopment analysis," Journal of Business Research, Elsevier, vol. 60(11), pages 1191-1197, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bu, Kyunghee & Park, Seong Yong, 2016. "Are consumers in collectivist culture mostly indifferent to sports lesson programs?: A DAQ simulation on the Kano fuzzy model," Journal of Business Research, Elsevier, vol. 69(5), pages 1656-1660.
    2. Caroline Osuagwu, 2020. "Market Orientation Conceptualizations, Components and Performance-Impacts: A Literature Review and Conceptual Framework," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 11(2), pages 102-102, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Sandra S. & Luo, Xueming & Shi, Yi-Zheng, 2003. "Market-oriented organizations in an emerging economy: A study of missing links," Journal of Business Research, Elsevier, vol. 56(6), pages 481-491, June.
    2. Mahmoud Abdulai Mahmoud & Charles Blankson & Robert E. Hinson, 2017. "Market orientation and corporate social responsibility: towards an integrated conceptual framework," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-15, December.
    3. P.K.A. Ladipo & A. Ganiyu Rahim & C. Abayomi Oguntoyibo & I. Olatunji Okikiola, 2016. "Market Orientation and Business Performance: a Study of Interrelationships and Effects in a Small sized Hotels within Lagos State Metropolis," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(4), pages 98-119, December.
    4. Selmi, Noureddine & Chaney, Damien, 2018. "A measure of revenue management orientation and its mediating role in the relationship between market orientation and performance," Journal of Business Research, Elsevier, vol. 89(C), pages 99-109.
    5. Ellis, Paul D., 2010. "International trade intermediaries and the transfer of marketing knowledge in transition economies," International Business Review, Elsevier, vol. 19(1), pages 16-33, February.
    6. Paul D. Ellis, 2010. "Is Market Orientation Affected by the Size and Diversity of Customer Networks?," Management International Review, Springer, vol. 50(3), pages 325-345, June.
    7. Dev K. Dutta & Vishal K. Gupta & Xiujian Chen, 2016. "A Tale of Three Strategic Orientations: A Moderated-Mediation Framework of the Impact of Entrepreneurial Orientation, Market Orientation, and Learning Orientation on Firm Performance," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 313-348, September.
    8. Antonio Carrizo Moreira & Pedro Miguel Silva, 2013. "Market orientation, innovation and organizational commitment in industrial firms," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 25(2), pages 123-142.
    9. Diego Monferrer & Maria Ripolles & Andreu Blesa, 2012. "Competitiveness through strategic orientation," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 24(2), pages 163-185.
    10. Smirnova, Maria M. & Rebiazina, Vera A. & Frösén, Johanna, 2018. "Customer orientation as a multidimensional construct: Evidence from the Russian markets," Journal of Business Research, Elsevier, vol. 86(C), pages 457-467.
    11. Ade Octavia & Sigit Indrawijaya & Yayuk Sriayudha & Heriberta & Husni Hasbullah & Asrini, 2020. "Impact on E-Commerce Adoption on Entrepreneurial Orientation and Market Orientation in Business Performance of SMEs," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(5), pages 516-525, May.
    12. Langerak, F., 2002. "What is the Predictive Power of Market Orientation?," ERIM Report Series Research in Management ERS-2002-88-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    13. Nwankwo Cosmas Anayochukwu & Kanyangale Macdonald Isaac, 2019. "Market Orientation and Survival of Small and Medium Enterprises in Nigeria," Foundations of Management, Sciendo, vol. 11(1), pages 291-304, January.
    14. Yuan Li & YongFeng Sun & Yi Liu, 2006. "An empirical study of SOEs' market orientation in transitional China," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 93-113, March.
    15. Theoharakis, Vasilis & Hooley, Graham, 2008. "Customer orientation and innovativeness: Differing roles in New and Old Europe," International Journal of Research in Marketing, Elsevier, vol. 25(1), pages 69-79.
    16. Muhammad Sajjad Hussain & Muhammad Muhaizam Bin Musa Musa & Abdelnaser Omran Ali, 2018. "The Impact of Private Ownership Structure on Risk Taking by Pakistani Banks: An Empirical Study AbstractThe financial crisis of 2007-09 was converted the focus of researchers and regulators toward ban," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(3), pages :325-337, September.
    17. Haugland, Sven A. & Myrtveit, Ingunn & Nygaard, Arne, 2007. "Market orientation and performance in the service industry: A data envelopment analysis," Journal of Business Research, Elsevier, vol. 60(11), pages 1191-1197, November.
    18. Weng, Wei & Fujimura, Shigeru, 2012. "Control methods for dynamic time-based manufacturing under customized product lead times," European Journal of Operational Research, Elsevier, vol. 218(1), pages 86-96.
    19. Kaifeng Jiang & Riki Takeuchi & David P. Lepak, 2013. "Where do We Go From Here? New Perspectives on the Black Box in Strategic Human Resource Management Research," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1448-1480, December.
    20. Gonçalo Rodrigues Brás & Miguel Torres Preto, 2021. "The consequences of intrapreneurship in exporting firms: a structural-model approach," CeBER Working Papers 2021-06, Centre for Business and Economics Research (CeBER), University of Coimbra.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijarbs:v:4:y:2014:i:9:p:219-232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.