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Market Orientation and Performance of Small Businesses in South Africa

Author

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  • Edem Korku Agbobli
  • Olabanji Oni
  • Olawale Fatoki

Abstract

The study focused on identifying the relationship between market orientation and performance of small businesses in Vryburg region of South Africa. It aimed to achieve the following objectives, (1) To determine the level of market orientation among small businesses in Vryburg region of South Africa, (2) To establish if there is any relationship between market orientation and performance of small businesses in Vryburg region of South Africa. The study was exploratory in nature and utilised the quantitative research method with a descriptive research design. 268 questionnaires were distributed to small businesses owners/managers in the Vryburg region of South Africa. 207 questionnaires were returned, 9 questionnaires out of the 207 returned were incorrectly filled. Simple random sampling, a probability sampling technique was used in the study. Data analysis included descriptive statistics, correlation and regression analysis. The Cronbach’s Alpha co-efficient was used to measure reliability. The findings revealed that the majority of small businesses in Vryburg region of South Africa are market oriented. The findings further show that there is a positive relationship between market orientation and the performance of small business in the Vrburg region of South Africa. The study proposed the formalisation of small businesses, the development of strategic cultures as well as entrepreneurship and business management training for small business owners and managers.

Suggested Citation

  • Edem Korku Agbobli & Olabanji Oni & Olawale Fatoki, 2017. "Market Orientation and Performance of Small Businesses in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(5), pages 135-143.
    • Handle: RePEc:rnd:arjebs:v:9:y:2017:i:5:p:135-143
    DOI: 10.22610/jebs.v9i5(J).1915
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    References listed on IDEAS

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    1. Erik Hurst & Benjamin Wild Pugsley, 2011. "What Do Small Businesses Do?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(2 (Fall)), pages 73-142.
    2. Ludovica Ioana SAVLOVSCHI & Nicoleta Raluca ROBU, 2011. "The Role of SMEs in Modern Economy," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 277-281, June.
    3. Cillo, Paola & De Luca, Luigi M. & Troilo, Gabriele, 2010. "Market information approaches, product innovativeness, and firm performance: An empirical study in the fashion industry," Research Policy, Elsevier, vol. 39(9), pages 1242-1252, November.
    4. Engin Deniz Eris & Omur Neczan Timurcanday Ozmen, 2012. "The Effect of Market Orientation, Learning Orientation and Innovativeness on Firm Performance: A Research from Turkish Logistics Sector," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 5(1), pages 77-108, April.
    5. Neil A. Morgan & Douglas W. Vorhies & Charlotte H. Mason, 2009. "Market orientation, marketing capabilities, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 909-920, August.
    6. Mike Chen‐Ho Chao & John E. Spillan, 2010. "The journey from market orientation to firm performance," Management Research Review, Emerald Group Publishing Limited, vol. 33(5), pages 472-483, April.
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