The effect of market orientation as a mediating variable in the relationship between entrepreneurial orientation and SMEs performance
Purpose – This study aims to examine the effect of market orientation (MO) as a mediating variable in the relationship between entrepreneurial orientation (EO) and small and medium enterprises (SMEs)’ performance. Design/methodology/approach – A total of 500 SMEs in the manufacturing industry of food and beverages were involved in this study with a response rate of 117. Data collection was conducted in all states of Peninsular Malaysia including the northern, central, southern and eastern regions. Findings – The findings show that EO has a significant relationship with MO, and MO has a significant relationship with SME performance. MO will mediate the relationship between EO and SMEs’ performance. Practical implications – The higher the EO implemented in a business, the more willing a company will be to implement MO. This analysis shows that highly entrepreneurial firms tend to be highly market orientated and this affects SMEs’ performance. Originality/value – The results of this study show that the characteristic of entrepreneurial and MO practiced by SMEs in Malaysia has been significantly affected the SMEs’ performance. It indicates that EO offers a holistic and systematic model for supporting SMEs to build a well-maintained environment of MO and SMEs’ performance.
Year of publication: |
2016
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Authors: | Amin, Muslim ; Thurasamy, Ramayah ; Aldakhil, Abdullah M. ; Kaswuri, Aznur Hafeez Bin |
Published in: |
Nankai Business Review International. - Emerald Group Publishing Limited, ISSN 2040-8757, ZDB-ID 2549226-3. - Vol. 7.2016, 1, p. 39-59
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Publisher: |
Emerald Group Publishing Limited |
Subject: | Performance | SMEs | Entrepreneurial orientation | Market orientation |
Saved in:
Online Resource