Modelling the Effects of Market Orientation Enablers on Business Performance among SMEs in a Developing Country

Abstract

Whilst studies have contributed to the notion that market orientation and its elements drive business performance, very few research efforts has specifically focussed on the relationship between the enablers of market orientation and business performance. The current study provides a succinct relationship between the enablers of market orientation and the relationship with business performance in small and medium enterprises within a South African context. The study was approached from a quantitative paradigm through a structured questionnaire to examine the relationships. Through confirmatory factor analysis and structural equations path modelling, the results established that enablers of market orientation (market-based rewards, interdepartmental cohesion, owners/managers influence and management risk exposure) influence the business performance of SMEs in the region. A significant positive relationship was noted between market orientation enablers and business performance. These variables need to be further unpacked in order to provide synergy and strength for SMEs to survive in competitive environments

DOI: 10.5901/mjss.2014.v5n16p33