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The effect of market orientation as a mediating variable in the relationship between entrepreneurial orientation and SMEs performance

Author

Listed:
  • Muslim Amin
  • Ramayah Thurasamy
  • Abdullah M. Aldakhil
  • Aznur Hafeez Bin Kaswuri

Abstract

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.

Suggested Citation

  • Muslim Amin & Ramayah Thurasamy & Abdullah M. Aldakhil & Aznur Hafeez Bin Kaswuri, 2016. "The effect of market orientation as a mediating variable in the relationship between entrepreneurial orientation and SMEs performance," Nankai Business Review International, Emerald Group Publishing Limited, vol. 7(1), pages 39-59, March.
    • Handle: RePEc:eme:nbripp:v:7:y:2016:i:1:p:39-59
    DOI: 10.1108/NBRI-08-2015-0019
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    Citations

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    Cited by:

    1. Bello Taofik Abidemi & Dauda Adamu Abubakar & Ismail Alhaji Suleiman & Auwal Mohammad Salihu, 2020. "The Impact of Market Orientation and Performance Using Environmental Turbulence as a Moderator," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(1), pages 127-133, March.
    2. Kibeshi Kiyabo & Nsubili Isaga, 2019. "Strategic entrepreneurship, competitive advantage, and SMEs’ performance in the welding industry in Tanzania," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-23, December.
    3. Muhammad Anwar & Thomas Clauss & Wunnam Basit Issah, 2022. "Entrepreneurial orientation and new venture performance in emerging markets: the mediating role of opportunity recognition," Review of Managerial Science, Springer, vol. 16(3), pages 769-796, April.
    4. Muhammad Imran, Hassan Mujtaba Nawaz Saleem, Jawad Iqbal, S. M. Tariq Rafi, 2020. "Entrepreneurial Orientation and Firm's Export Performance: Evidence from Surgical Industry," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 7(1), pages 47-63, March.
    5. Muhammad Imran & Zhaoquan Jian & Adnan ul Haque & Mariusz Urbański & Sree Lekshmi Sreekumaran Nair, 2018. "Determinants of Firm’s Export Performance in China’s Automobile Industry," Sustainability, MDPI, vol. 10(11), pages 1-23, November.
    6. Shuja Iqbal & José Moleiro Martins & Mário Nuno Mata & Shumaila Naz & Shamim Akhtar & António Abreu, 2021. "Linking Entrepreneurial Orientation with Innovation Performance in SMEs; the Role of Organizational Commitment and Transformational Leadership Using Smart PLS-SEM," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    7. Yun Hee Cho & Joo-Heon Lee, 2020. "A Study on the Effects of Entrepreneurial Orientation and Learning Orientation on Financial Performance: Focusing on Mediating Effects of Market Orientation," Sustainability, MDPI, vol. 12(11), pages 1-19, June.
    8. Falah Abu & Hamed Gholami & Norhayati Zakuan & Muhamad Zameri Mat Saman & Dalia Streimikiene & Justas Streimikis, 2020. "The Influence of Contextual Factors on the Implementation of Lean Practices: An Analysis of Furniture Industries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(55), pages 867-867, August.
    9. Falah Abu & Hamed Gholami & Muhamad Zameri Mat Saman & Norhayati Zakuan & Dalia Streimikiene & Grigorios L. Kyriakopoulos, 2021. "An SEM Approach for the Barrier Analysis in Lean Implementation in Manufacturing Industries," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    10. Wooseung Lee & Boyoung Kim, 2019. "Business Sustainability of Start-Ups Based on Government Support: An Empirical Study of Korean Start-Ups," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    11. Vivy Kristinae & Roby Sambung & Meitiana Sahay, 2019. "The Role Of Entrepreneurial Orientation In Product Innovation In Emerging Markets On The Local Products," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(2), pages 35-44, September.
    12. Lopes de Sousa Jabbour, Ana Beatriz & Ndubisi, Nelson Oly & Roman Pais Seles, Bruno Michel, 2020. "Sustainable development in Asian manufacturing SMEs: Progress and directions," International Journal of Production Economics, Elsevier, vol. 225(C).
    13. Mukhamad Najib & Abdul Aziz Abdul Rahman & Farah Fahma, 2021. "Business Survival of Small and Medium-Sized Restaurants through a Crisis: The Role of Government Support and Innovation," Sustainability, MDPI, vol. 13(19), pages 1-16, September.
    14. Muhammad Sualeh Khattak & Rizwan Ullah, 2021. "The role of entrepreneurial orientation in tangible and intangible resource acquisition and new venture growth," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1619-1637, September.
    15. Kibeshi Kiyabo & Nsubili Isaga, 2020. "Entrepreneurial orientation, competitive advantage, and SMEs’ performance: application of firm growth and personal wealth measures," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-15, December.

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