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

Journal Article

, Muslim Amin, Ramayah Thurasamy, Abdullah M. Aldakhil, Aznur Hafeez . 2016

• نوع عمل المنشور: Research Paper
• رابط المنشور على الويب: http://www.emeraldinsight.com/doi/abs/10.1108/NBRI-08-2015-0019
• رقم العدد: 1
• رقم الإصدار السنوي: 7
• الصفحات: 39-59

مستخلص المنشور

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.
Keywords Performance, SMEs, Entrepreneurial orientation, Market orientation
Paper type Research paper