scholarly journals Dis-Aggregated Effect of Market Orientation on Firm Performance

Due to ambiguity in the market orientation and performance relationship, the basic aim of the study to investigate the nature of relationship exists between market orientation and performance of the manufacturing SMEs in India. Data for this study were collected from the 388 managers/owners of SMEs indulged in the manufacturing sector through well-established scales. The utilized scale’s reliability and validity were assessed through CFA, and various hypotheses related to the environmental moderators and innovation mediation was tested. This study is relevant for owners/managers and policymakers responsible for improving the performance of small and medium enterprises, working in the manufacturing sector. The study necessitates the significance of catering express needs of customers to boost up the effect of market orientation on performance. The study tested the relationship between the market orientation and performance relationship at the disaggregated level. The important insight about the direct, indirect, and the moderated relationship was reported in the study.

Author(s):  
Seemant Kumar Yadav ◽  
Vikas Tripathi ◽  
Geetika Goel

Due to ambiguity in the market orientation and performance relationship, the basic aim of the study to investigate the nature of relationship exists between market orientation and performance of the manufacturing SMEs in India. Data for this study were collected from the 388 managers/owners of SMEs indulged in the manufacturing sector through well-established scales. The utilized scale's reliability and validity were assessed through CFA, and various hypotheses related to the environmental moderators and innovation mediation were tested. This study is relevant for owners/managers and policymakers responsible for improving the performance of small and medium enterprises, working in the manufacturing sector. The study necessitates the significance of catering express needs of customers to boost up the effect of market orientation on performance. The study tested the relationship between the market orientation and performance relationship at the disaggregated level. The important insight about the direct, indirect, and the moderated relationship was reported in the study.


2021 ◽  
Vol 17 (2) ◽  
pp. 29-52
Author(s):  
Anna Wójcik-Karpacz ◽  
◽  
Jarosław Karpacz ◽  
Joanna Rudawska ◽  
◽  
...  

Purpose: The purpose of this article is to identify the role of market dynamism in the relationship between market orientation and the performance of micro, small, and medium enterprises (MSMEs) operating in technology parks (TPs) in Poland. Methodology: The two methods used for performing the quantitative empirical research are CAWI and PAPI. The research sample included MSMEs operating in technology parks in Poland. The article is the answer to the needs for systematic research of models between market orientation and firm performance. Findings: The research findings provide an insight into the level of market orientation and performance of the analyzed MSMEs operating in technology parks in Poland. It was found that MSMEs in the research sample were not a homogeneous group in this respect. It has been proven that market orientation is a significant stimulant of firm performance, while market dynamism has not been classified as a moderator of the market orientation–firm performance relationship. Implications for theory and practice: This study contributes to strategic management by identifying the key role of market orientation for enterprises wishing to benefit from this type of strategic orientation. The important role of the predictor – market orientation in shaping the results of micro, small and medium-sized enterprises operating at TPs in Poland has been proven. In practice, this means that increasing the level of market orientation is conducive to increasing positively assessed financial performance. Originality and value: Our research carried out at MSMEs operating in technology parks in Poland enriches and supplements knowledge about market orientation as a phenomenon of universal character because it also applies to smaller sized business organizations.


Author(s):  
Mwamisha D Mkala ◽  
Kenneth L Wanjau ◽  
Teresia N Kyalo

Manufacturing small and medium enterprises (SMEs) are the breeding ground for human capital competencies, creativity and innovation, which are important inputs for manufacturing competitiveness. In Kenya, manufacturing SMEs contribute 14% of gross domestic product (GDP), and train and employ 30% of the workforce. However, their growth and competitiveness are undermined by challenges in the firms’ operations management. Consequently, the firms struggle to survive as competitive enterprises, both domestically and globally. The purpose of this study was to establish how entrepreneurial orientation (EO) enhances the relationship between operations management and firm performance. Quantitative primary data were collected from managers of 83 firms registered by the Kenya Association of Manufacturers in the food and beverage sub-sector using a self-administered questionnaire. Structural equation modelling was used to analyse the data for relationships between the study variables. The study found a positive relationship between operations management and EO, and between EO and firm performance. The study also found that EO is a mediator of the relationship between operations management and performance of manufacturing SMEs in Kenya. The study recommends that for manufacturing SMEs to effectively deploy operations management competencies and gain global competitiveness, they must engage EO as a strategy to foment organisational experimentation and exploration and commercialize the resultant innovations. At the macroeconomic level, the government should support manufacturing SMEs through enactment and promotion of policies that enable operations managers to exploit their firm’s EO stock.


2021 ◽  
Vol 18 (2) ◽  
pp. 210
Author(s):  
I Wayan Widnyana ◽  
I Made Dauh Wijana ◽  
Almuntasir Almuntasir

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.


Author(s):  
T. Ramayah ◽  
Osman Mohamad ◽  
Azizah Omar ◽  
Malliga Marimuthu ◽  
Jasmine Yeap Ai Leen

Due to the rise in environmental awareness, green technologies and practices have become the conscientious imperative expected from all manufacturing industries. Consequently, environmental initiatives are becoming an essential part of the strategic planning in organizations, including the small and medium enterprises (SMEs). Thus, the objectives of this study were to determine the extent of implementation in green manufacturing practices among the SMEs as well as to examine the relationship between those practices and manufacturing performance. Data was collected via a survey from 544 SMEs across all types of industries located throughout Malaysia. Results of the analysis showed that there is an encouraging level of implementation in green practices among the SMEs, with the optimization of processes to reduce solid waste being the top practice. The results also revealed that green practices within the inbound and production phase of the manufacturing lifecycle significantly affected manufacturing performance but not practices within the outbound phase.


2013 ◽  
pp. 1026-1043
Author(s):  
T. Ramayah ◽  
Osman Mohamad ◽  
Azizah Omar ◽  
Malliga Marimuthu ◽  
Jasmine Yeap Ai Leen

Due to the rise in environmental awareness, green technologies and practices have become the conscientious imperative expected from all manufacturing industries. Consequently, environmental initiatives are becoming an essential part of the strategic planning in organizations, including the small and medium enterprises (SMEs). Thus, the objectives of this study were to determine the extent of implementation in green manufacturing practices among the SMEs as well as to examine the relationship between those practices and manufacturing performance. Data was collected via a survey from 544 SMEs across all types of industries located throughout Malaysia. Results of the analysis showed that there is an encouraging level of implementation in green practices among the SMEs, with the optimization of processes to reduce solid waste being the top practice. The results also revealed that green practices within the inbound and production phase of the manufacturing lifecycle significantly affected manufacturing performance but not practices within the outbound phase.


2020 ◽  
Vol 6 (4) ◽  
pp. 155
Author(s):  
Nagwan AlQershi ◽  
Sany Sanuri Mohd Mokhtar ◽  
Zakaria Bin Abas

Customer Relationship Management (CRM) is more than an information tool and plays a critical role in small and medium enterprises (SMEs). The present study explored the moderating effect of relational capital (RC) on the relationship between CRM dimensions and the performance of 284 Yemeni manufacturing SMEs. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to test the study’s hypotheses. Results indicate that only three of the CRM dimensions have a significant effect on performance. The moderating effects of relational capital on this relationship were also examined and were found to be significant for only two CRM dimensions: technology-based CRM and CRM organization. Key customer focus and CRM knowledge management had no effect. The findings of this study offer important insights for owners and managers of SMEs, researchers, and policymakers to further understand the effects of relational capital and CRM on SMEs’ performance. SMEs should be encouraged to develop their CRM and relational capital to improve their performance.


Author(s):  
Nhamo Mashavira ◽  
Crispen Chipunza

Background: Literature is replete with evidence on the impact of managerial competencies on firm performance. Yet, there is minimal evidence on how managerial conceptual competencies in particular, affect the performance of small and medium enterprises (SMEs) in Zimbabwe.Aim: The current study was meant to find the impact of managerial conceptual competencies on the performance of SMEs in Zimbabwe’s Harare Province.Setting: The under-exploration of the relationship between managerial conceptual competencies and SME performance, in an economy that at present is highly informalised, provides a platform for further exploration of this phenomenon.Methods: The study adopted a purely quantitative approach that employed a structured direct survey design.Results: The study established that owners and/or managers had reasonable levels of conceptual competencies and that SMEs performed fairly well in terms of both innovation and return on investment (ROI). It was found out that statistically significant relationships existed between managerial conceptual competencies and SME performance when measured by innovation and ROI.Conclusion: In view of the results, it can be concluded that the performance of SMEs in terms of innovation and ROI can be influenced, to some extent, by owner and/or managers’ conceptual competencies.


2016 ◽  
Vol 12 (19) ◽  
pp. 181
Author(s):  
Ndiritu Caroline ◽  
Ndiritu Anne ◽  
Kidombo Harriet

This study explored the influence of Total Quality Management practices on performance of Small and Medium Enterprises. Youth Projects in Kajiado County, Kenya were used as the target population. One of the key TQM management practices is training of employees. The study sort to determine the influence of training of employees on performance on SMEs. The study was carried out on 168 youth group projects in Kajiado County.Questionnaires and interviews were used as research instruments. For triangulation purpose, the interview schedule was used to confirm the information captured by the questionnaire. Data was collected from both primary and secondary sources. The study used mixed method approach in the collection and analysis, to capture both the qualitative and quantitative data.Spearman’s correlation was used to test the relationship between training and performance of SMEs. The analyses indicated a moderately positive relationship between training and performance of SMEs in Kajiado county which was statistically significant rs=0.400, p=0.600.Based on the findings and conclusions of the study, it is recommended that to improve the performance of the youth groups, they should strive to ensure their product in the market is superior. This can only be ensured by equipping their employees with proper skills, knowledge and values through training.


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