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Impact of Environmental Turbulence on Market Orientation–Business Performance Relationship in SSIs

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  • Neetu Andotra
  • Richa Gupta

Abstract

Market orientation–performance relationship is moderated by competitive intensity, market turbulence and technological turbulence. The primary data for the study were collected using census method from 150 owners, sales managers and marketing managers of small-scale industries (SSIs) registered in Battal Ballian Industrial Estate in Udhampur, J&K. Output from moderated regression analysis revealed insignificant impact of market turbulence but significant impact of technological turbulence and competitive intensity on market orientation–business performance relationship. Subgroup analysis showed that higher the level of technological turbulence, weaker is the market orientation– business performance relationship, and higher the level of competitive intensity, higher is the market orientation–business performance relationship. The article suggests that SSIs should be induced to create a competitive environment by extending markets of their products, adding new products to their lines and catering to the needs of new sets of customers. They must keep themselves updated with new technologies through either collaboration with large-scale units or linkages with R&D labs within or outside India. Managers are suggested to use information technology effectively to enable new value creation processes, inter-functional coordination and linkages with external stakeholders. Further, the government should take steps to meet expansion needs of SSIs by providing concessional infrastructure conducive for competitiveness and business sustainability.

Suggested Citation

  • Neetu Andotra & Richa Gupta, 2016. "Impact of Environmental Turbulence on Market Orientation–Business Performance Relationship in SSIs," Global Business Review, International Management Institute, vol. 17(4), pages 806-820, August.
    • Handle: RePEc:sae:globus:v:17:y:2016:i:4:p:806-820
    DOI: 10.1177/0972150916645679
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    2. Subramanian, Ram & Gopalakrishna, Pradeep, 2001. "The market orientation-performance relationship in the context of a developing economy: An empirical analysis," Journal of Business Research, Elsevier, vol. 53(1), pages 1-13, July.
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    4. Lloyd C. Harris, 2001. "Market Orientation and Performance: Objective and Subjective Empirical Evidence from UK Companies," Journal of Management Studies, Wiley Blackwell, vol. 38(1), pages 17-43, January.
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    Cited by:

    1. Heinz Ahn & Marcel Clermont & Stephan Schwetschke, 2018. "Research on target costing: past, present and future," Management Review Quarterly, Springer, vol. 68(3), pages 321-354, August.

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