Mediating effect of innovation with market orientation and performance relationship

2019 ◽  
Vol 17 (2) ◽  
pp. 152-167
Author(s):  
Seemant Kumar Yadav ◽  
Vikas Tripathi ◽  
Geetika Goel
Keyword(s):  
Market Orientation ◽  
Business Performance ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Mediating Effect ◽  
Incremental Innovation ◽  
Cross Sectional ◽  
Content Type ◽  
And Performance ◽  
Medium Enterprises

Purpose The purpose of this study is to examine the effect of market orientation on performance and to figure out the mediator effect of incremental innovation on this relationship with an implementation on Indian small and medium enterprises (SMEs). Design/methodology/approach Following a survey among 333 owners/managers of SMEs in Indian, six research propositions were framed. Confirmatory factor analysis (CFA) and regression analysis was used for the purpose of data analysis. Findings The outcome of the study demonstrates a significant effect of market orientation on SMEs performance. In addition, the mediating effect of innovation between market orientation and business performance was not supported in the context. Research limitations/implications This study uses cross-sectional research, which limits the ability to test the causality; hence, such studies should be replicated in other settings also to get more evidences about the relationship. Practical implications The research will help managers especially in manufacturing SMEs of developing countries to understand benefits of being market-oriented to improve performance. Originality/value The study attempts to enrich the market orientation literature especially in developing economies. It identifies the significant effect of interfunctional coordination on performance of small and medium enterprises working in more volatile environment. Further, the study also examines mediating role of innovation between market orientation and performance linkage.

scholarly journals Internationalization of SMEs and market orientation

2019 ◽  
Vol 32 (1) ◽  
pp. 69-85 ◽  
Author(s):  
Soniya Billore ◽  
Gautam Billore
Keyword(s):  
Market Orientation ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Cultural Knowledge ◽  
Target Market ◽  
Indian Market ◽  
Customer Knowledge ◽  
Content Type ◽  
Strategic Fit ◽  
Medium Enterprises

Purpose This paper aims to study the context of market orientation and the contribution of customer knowledge, networking and cultural knowledge to market orientation particularly to the internationalization of firms in developing economies. Design/methodology/approach A multiple case approach is adopted with four Swedish firms internationalizing to the Indian market. The data was obtained through personal interviews and typically lasted an hour. Follow-up questions were obtained by personal meetings or on Skype. Data was collected over a period of seven months during 2016-2017. Findings This study highlights the importance of customer knowledge, networking and cultural knowledge for foreign small and medium enterprises (SMEs) in the initial stages of internationalization. It proposes that a holistic market sensing of the target market can be achieved as the three constructs contribute to the market orientation of the firms and help in devising relevant strategic fit with the market. Research limitations/implications The sample size is small due to a limited number of Swedish SMEs who have the experience of operating in the Indian market. Future studies may include the Nordic region, and a quantitative approach for testing market orientation frameworks can be adopted. Originality/value This study lifts the concept of market sensing as customer knowledge, networking and cultural knowledge strengthen the market orientation of the firm. It addresses the research gap about limited research in developing market contexts for SME internationalization and specifically on Swedish SMEs in the Indian market.

Moderation effect of competence of knowledge and innovation: case of Bali

2020 ◽  
Vol 26 (6) ◽  
pp. 1307-1327 ◽  
Author(s):  
Irwan Usman ◽  
Haris Maupa ◽  
Muhammad Idrus ◽  
Siti Haerani ◽  
Nurjanna Nurjanna
Keyword(s):  
Market Orientation ◽  
Textile Industry ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Hypothesis Test ◽  
Field Studies ◽  
Small Scale ◽  
Content Type ◽  
Moderation Effect ◽  
Medium Enterprises

PurposeThis paper examines how market orientation and competence of knowledge reinforce the innovation and in turn improve the business performance.Design/methodology/approachThis research applied research design with quantitative approach based on positivism philosophy, that is, research aimed to test the theory and data which is general to produce findings that are special through hypothesis test. This study was supplemented by field studies as a necessary source of data in the form of trends, attitudes, opinions, perceptions of owners, managers or senior employees of SMEs in the textile industry in Bali, related to the variables used in this study.Findings(1) Market orientation influences business performance, (2) competence of knowledge moderates the influence of market orientation on business performance, (3) innovation moderates the influence of market orientation on business performance.Originality/value(1) Novelty of this research is developing the concept of competence of knowledge associated with business performance in which this relationship has not yet been expressed. (2) Building the concept of innovation development of small-scale industry based on the market orientation. (3) Developing the concept of innovative development of small and medium enterprises of textile industry based on competence of knowledge. (4) Investigating the concept of market orientation and competence of knowledge in an integrated and holistic way to strengthen the innovation and business performance of SMEs of the textile industry in Bali.

scholarly journals Determinants Of, And Barriers To, Market Orientation And The Relationship With Business Performance Among SMES

2015 ◽  
Vol 31 (5) ◽  
pp. 1667 ◽  
Author(s):  
Job Dubihlela ◽  
Manilall Roy Dhurup
Keyword(s):  
Market Orientation ◽  
Business Performance ◽  
Survey Design ◽  
Small And Medium Enterprises ◽  
Negative Relationship ◽  
Target Population ◽  
Cross Sectional Study ◽  
Cross Sectional ◽  
Medium Enterprises ◽  
The Relationship

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.

Succession planning and performance of family-owned small and medium enterprises in Arusha City – Tanzania

2019 ◽  
Vol 10 (3) ◽  
pp. 213-230 ◽  
Author(s):  
Rose Haynes Kiwia ◽  
Kenneth M.K. Bengesi ◽  
Daniel W. Ndyetabula
Keyword(s):  
Succession Planning ◽  
Quantitative Research ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Family Members ◽  
Research Approach ◽  
Research Paradigm ◽  
Content Type ◽  
And Performance ◽  
Medium Enterprises

Purpose The purpose of this paper is to examine succession planning and performance of family-owned small and medium enterprises (SMEs). Design/methodology/approach The quantitative research approach and a cross-sectional research design were employed. The probability sampling technique was used to draw 219 respondents from the sampling frame. A structured questionnaire was used for data collection. Descriptive statistics and independent samples t-tests were used for data analysis. Findings It was revealed that most of family-owned SMEs founders in the study area had mechanisms for succession planning for their businesses. Also, there is a difference in business performance when successors are selected and prepared by business founders compared to when they are selected and prepared by other family members. Successors selected and prepared by business founders performed better in business than successors who were selected and prepared by other family members. Research limitations/implications This study employed a quantitative research paradigm methodology, which limits deep discussion with respondents. Future studies could consider using a qualitative research paradigm methodology. Originality/value The paper presents succession planning process experience in family-owned SMEs in the study area, specifically the existence of succession planning in family-owned SMEs. It also shows a difference in business performance between the two investigated groups. This paper will benefit business founders, family business successors and researchers.

Synergistic model to boost business performance: a New Zealand case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ploypailin Kijkasiwat ◽  
Jenny Cave ◽  
Nirosha Hewa Wellalage ◽  
Stuart Locke
Keyword(s):  
New Zealand ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Business Owners ◽  
Cross Sectional ◽  
Content Type ◽  
Ordered Logistic Regression ◽  
Net Profit ◽  
Medium Enterprises

PurposeThis study investigates whether there is an association between business symbiosis and the performance of micro, small and medium enterprises (MSMEs).Design/methodology/approachThe authors conducted 200 surveys, using ordered logistic regression to evaluate the results. Participants are MSME business owners in Cambridge, New Zealand.FindingsThe authors found that connections with banks and other businesses in the same and across different industries, positively associates with changes in MSME profitability. Additionally, operating a business as a franchisee under the regulations or headquarter issued rules is positively associated with change in net profit.Originality/valueWhile there are limitations with cross-sectional data, the study indicates a mechanism and frameworks for policy analysis when deciding on allocation of funds to particular networks.

Lean manufacturing practices in Indonesian manufacturing firms

2016 ◽  
Vol 7 (2) ◽  
pp. 149-170 ◽  
Author(s):  
Gusman Nawanir ◽  
Kong Teong Lim ◽  
Siti Norezam Othman
Keyword(s):  
Developing Country ◽  
Lean Manufacturing ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Cross Sectional ◽  
Content Type ◽  
Medium Enterprises

Purpose Contradictory findings regarding the implication of Lean manufacturing (LM) implementation to business performance (BP) have been observed in prior studies. Hence, more studies are required to be capable of finding the status of LM implementation and its impacts on BP. Accordingly, this study examines and scrutinizes the effects of LM practices on the enhancement of BP from a developing country standpoint. Design/methodology/approach This empirical study uses a survey-based quantitative data collection approach through a cross-sectional research design. A total of 139 large manufacturing companies in Indonesia participated, selected through stratified random sampling technique. Three hypotheses regarding the effect of LM on BP were examined. Findings The results empirically reveal that comprehensive implementation of LM practices is necessary. Also, this study unravels that high BP (in terms of profitability, sales and customer satisfaction) is dependent upon the comprehensive implementation of LM practices. In other words, LM practices are not recommended to be implemented as a subset. Research limitations/implications Although this study is free from the common method bias as an implication of self-reporting by single respondent from one company, future researchers should consider of collecting data from multiple individuals in one company. Additionally, due to the study conducted in limited industries and large manufacturing firms, the results may not be applicable in other industries as well as in small and medium enterprises. Practical implications This study has further confirmed and established the LM–BP relationship. In line with the complementarity theory, it provides an insight that all the LM practices should be implemented simultaneously in a holistic manner because they are mutually supportive. In such a situation, piecemeal adoption is highly not recommended. Originality/value This study emphasizes on how LM contributes to the superior BP. Meanwhile, little attention has been paid to investigate the LM and its implication on BP from a developing country standpoint. Thus, this study is initiated to fill the gap.

scholarly journals A Factorial Analysis Of The Barriers To Market Orientation Adoption Among Small And Medium Enterprises (SMEs) In A Developing Country

2013 ◽  
Vol 12 (11) ◽  
pp. 1331
Author(s):  
Job Dubihlela ◽  
M. Dhurup
Keyword(s):  
South Africa ◽  
Market Orientation ◽  
Business Performance ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Principal Component ◽  
Face To Face ◽  
Economic Progress ◽  
Medium Enterprises ◽  
Structured Questionnaire

The purpose of the study was to examine the barriers of market orientation by SMEs in South Africa. Data were collected using the personal face-to-face interviews with the use of a structured questionnaire. A total of 350 SMES were selected randomly and visited within the various municipal areas in South Africa. Exploratory factor analysis was used to identify the dimensions using the principal component analysis. A four-factor structure emerged accounting for 62% of total variance. The reliability analysis, reflected coefficient values ranging from 0.743 to 0.893, indicating satisfactory internal consistency amongst variables within each dimension. By analysing the barriers, the adoption of market orientation among SMEs, managers, and marketers are presented with recommended strategies and implications on how to embrace market orientation for effective business performance. Marketing capacities of SMEs may be strengthened through the implementing of market orientation. SMEs are vital for socio-economic progress for developing economies. Effective implementation of market orientation can assist SMEs growth and development.

scholarly journals The Mediating Role of Strategy Flexibility at the Effects of Entrepreneurial Orientation and Market Orientation on Business Performance Small Medium Enterprise Craft Sector in Indonesia

2019 ◽  
Vol 8 (2S9) ◽  
pp. 634-641
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Equation Model ◽  
Strategic Flexibility ◽  
And Performance ◽  
Medium Enterprises ◽  
Positive Effect

The research intends to test the effects of entrepeneurship orientation and market orientation on business performance with strategic flexibility as mediator. Considering Indonesia has been even today eagerly support entrepreneurial, it intends to explore relationship between the three variables in small and medium enterprises context. The study takes place in Indonesia with 194 sampel. For questionnaire distribution, it makes use of online tool with google form. The unit of analysis is owners, managers or decision-makers at the SMEs. For data analysis, it applies structural equation model with WarpPLS approach. The results demonstrate that entrepreneurial orientation does not significant effect on business performance, but has a positive effect on strategic flexibility. While market orientation has a positive effect on business performance, but it does not have significant effect on strategic flexibility. It means that strategic flexibility mediate relationship between entrepreneurial orientation and performance, while it does not hold true for relationship between market orientation and business performance.

A systematic literature review of open innovation in small and medium enterprises in the past decade

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huma Sikandar ◽  
Umar Haiyat Abdul Kohar
Keyword(s):  
Literature Review ◽  
Open Innovation ◽  
Resource Constraints ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Content Type ◽  
The Past ◽  
Prisma Statement ◽  
Major Factors ◽  
Medium Enterprises

Purpose There is a growing trend of open innovation (OI) in small and middle enterprises (SMEs) these days, yet the implementation of OI in SMEs is a challenge because of their financial and resource constraints. This study aims to identify and analyze the past trends, barriers and outcomes and major factors influencing the implementation of OI in SMEs. Design/methodology/approach This review is based on 40 published articles from the Scopus database. It selects highly cited papers published from 2010 to 2019. The PRISMA statement template is used to explain the overall process of selection and rejections of the relevant articles. Findings The study contributes in two ways. First, through a comprehensive literature review, the authors highlight the overall development of the concept of OI in the literature over the past 10 years and highlight the findings of the significant studies. Second, the authors provide detailed representations of the OI literature by calculating yearly publications and identifying the SMEs which mostly implement OI practices, journals that publish a relevant article, OI-related publications in different disciplines and geographical locations in which most of the OI studies have been conducted. The study also reveals the most cited articles, journals and authors. Originality/value The authors conclude this paper with the argument that although much research has been done in the OI field, still there is a need to establish tools, models and methods that could facilitate SMEs in OI, especially for developing economies.

Territory-based knowledge management in international marketing processes – the case of “Made in Italy” SMEs

2020 ◽  
Vol 32 (3) ◽  
pp. 425-442
Author(s):  
Giuseppe Festa ◽  
Matteo Rossi ◽  
Ashutosh Kolte ◽  
Mario Situm
Keyword(s):  
Competitive Advantage ◽  
International Development ◽  
Development Strategy ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Industrial Districts ◽  
International Expansion ◽  
Content Type ◽  
Medium Enterprises ◽  
Made In

Purpose This study aims to analyze the territory as a distinctive factor through which the concept and practice of “Made in Italy” operates. Specifically, the study considers the role of local and sub-national entrepreneurial collaborations that preserve and enhance factors such as history, style and talent as the essence of Italian “quality” and as the pillar of Italian territorial capitalism. Design/methodology/approach The research examines this Italian phenomenon by investigating small and medium enterprises (SMEs) that successfully compete abroad (and also in the domestic market) with a “glocal” approach, adopting the entrepreneurial formula of industrial districts. Findings The results indicate that international expansion is becoming increasingly more complex (as is every growth/development strategy) but that “glocalism” could represent a potential driver for the success of internationalization strategies. Specifically, for SMEs operating in industrial districts, territorial capitalism could emerge as a unique competitive factor, because it is a component of local structural capital and global reputational capital, as in the case of “Made in Italy.” Originality/value In an increasingly globalized market environment, many companies look to foreign markets to maintain and expand competitive advantage and business performance. Once the companies embark on this endeavor, organizations are involved in governing and managing these networks of finance, production and communication and the distribution-related relationships that constitute globalization. The push to engage in international development is currently imperative for SMEs, which need to extend their business engagement beyond conventional local markets and identify and exploit their distinctive competitive advantage to be able to succeed. One possible way of achieving this is the close interaction with the local territories in which these enterprises reside.

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