The influence of market orientation on the business performance of small and medium-sized enterprises in Hue City

Keywords

định hướng thị trường
kết quả hoạt động kinh doanh
doanh nghiệp nhỏ và vừa
thành phố Huế Market Orientation
Business performance
Small and medium-sized enterprises
Hue City

Abstract

This study aims to evaluate the impact of market orientation on the performance of small and medium-sized enterprises (SMEs) in Hue City, thereby proposing strategies to improve their business performance. Based on the survey results from 130 SMEs using a convenient method and structural equation modelling (SEM), the study shows three factors that directly affect the business results of SMEs as follows: competitor orientation (COO), inter-functional coordination (IC), and customer orientation (CUO). The influence level of three factors on SMEs’ business performance does not differ too much, but the inter-functional (IC) factor has the highest impact coefficient. Moreover, the study also demonstrated that COO, IC, and CUO factors have an indirect impact on the business results of SMEs through the mediator of competitive advantage (CA).

https://doi.org/10.26459/hueunijed.v133i5A.7370

References

  1. Bộ kế hoạch và đầu tư, Sách trắng Doanh nghiệp 2022, Nxb. Thống Kê, 2022.
  2. Tình hình kinh tế - xã hội tháng 8 và 8 tháng năm 2022 của tỉnh Thừa Thiên Huế, Cổng thông tin điện tử của Bộ kế hoạch và đầu tư, https://www.mpi.gov.vn/Pages/tinbai.aspx?idTin=55312.
  3. Tình hình kinh tế - xã hội tháng 8 và 8 tháng năm 2023 của tỉnh Thừa Thiên Huế, Cổng thông tin điện tử của Bộ kế hoạch và đầu tư, https://www.mpi.gov.vn/portal/Pages/2023-10-26/Tinh-kinh-kinh-te--xa-hoi-thang-8-va-8-thang-nam-2td8no2.aspx.
  4. Morgan, R. E., & Berthon, P. (2008), Market orientation, generative learning, innovation strategy and business performance inter‐relationships in bioscience firms, Journal of management studies, 45(8), 1329–1353.
  5. Hoàng Cửu Long (2013), The relationship among learning orientation, market orientation, entrepreneurial orientation, and firm performance of Vietnam marketing communications firms, Philippine Management Review, 20.
  6. Dawes, John (2000), Market orientation and company profitability: further evidence incorporating longitudinal data, Australian journal of management, 173–199.
  7. Narver, J. C. & Slater (1990), The Effect of Market Orientation on Business Profitability, Journal of Marketing, 1990, 54, 20–35.
  8. Van Egeren, M., & O'Connor, S. (1998), Drivers of market orientation and performance in service firms, Journal of Services Marketing, 12(1), 39–58.
  9. Hakala, H. (2001), Strategic orientations in management literature: Three approaches to understanding the interaction between market, technology, entrepreneurial and learning orientations, International Journal of Management Reviews, 13(2), 199–217.
  10. Lettice, F., Tschida, M. and Forstenlechner, I. (2014), Managing in an economic crisis: The role of market orientation in an international law firm, Journal of Business Research, 67(1), 2693–2700.
  11. Lee, D. H., Choi, S. B. and Kwak, W. J. (2014), The effects of four dimensions of strategic orientation on firm innovativeness and performance in emerging market small-and medium-size enterprises, Emerging Markets Finance and Trade, 50(5), 78–96.
  12. Beliaeva, T., Shirokova, G., Wales, W. and Gafforova, E. (2020), Benefiting from economic crisis? Strategic orientation effects, trade-offs, and configurations with resource availability on SME performance, International Entrepreneurship and Management Journal, 16(1), 165–194.
  13. Grewal, R. and Tansuhaj, P. (2001), Building organizational capabilities for managing economic crisis: The role of market orientation and strategic flexibility, Journal of marketing, 65(2), 67–80.
  14. Jaworski, Bernard J. and Ajay K. Kohli. (1993), Market Orienta-tion: Antecedents and Consequences, Journal of Marketing, 57, 53–70.
  15. Levitt, T. (1980), Marketing success through differentiation-of anything, Boston: Graduate School of Business Administration, Harvard University, 83–91.
  16. Flint, D. J., & Mentzer, J. T. (2000), Logiticians as marketers: Their role when customers' desired value changes, Journal of Business Logistics, 21(2), 19.
  17. Gounaris, S. P., Avlonitis, G. J., & Papastathopoulou, P. (2004), Managing a firm's behavior through market orientation development: some empirical findings, European journal of marketing, 38(11/12), 1481–1508.
  18. Porter, M. E. (1985), Competitive Advantage. Creating and Sustaining Superior Performance, Free Press, New York, 557.
  19. Zaltman, G., Duncan, R., & Holbek, J. (1973), Innovations and organizations, Wiley & Sons New York.
  20. Matear, S., Osborne, P., Garrett, T., & Gray, B. J. (2002), How does market orientation contribute to service firm performance? An examination of alternative mechanisms, European journal of marketing, 36(9/10), 1058–1075.
  21. Slater, S. F., & Narver, J. C. (1994), Does competitive environment moderate the market orientation-performance relationship?, Journal of marketing, 58(1), 46–55.
  22. Ma, H. (2000), Competitive advantage and firm performance, Competitiveness Review: An International Business Journal.
  23. Christensen, C. M. (2001), Competitive advantage, Mit sloan management review, 2001, 42(2), 105–109.
  24. Ramaswami, S. N., Bhargava, M., & Srivastava, R. K. (2004), Market-based assets and capabilities, business processes, and financial performance.
  25. Day, G. S. (1994), The capabilities of market-driven organizations, Journal of Marketing, 58(4), 37–52.
  26. López-Gamero, María D., José F. Molina-Azorín, and Enrique Claver-Cortés (2009), The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables, Journal of environmental management, 90(10), 3110–3121.
  27. Mahmood, Rosli, and Norshafizah Hanafi (2013), Entrepreneurial orientation and business performance of women-owned small and medium enterprises in Malaysia: Competitive advantage as a mediator, International Journal of Business and Social Science, (IJBSS) 4(1), 82–90.
  28. Sihite, M. (2018), Competitive advantage: Mediator of diversification and performance, IOP Conference Series: Materials Science and Engineering, 288(1), IOP Publishing.
  29. Homburg, C., Grozdanovic, M., & Klarmann, M. (2007), Responsiveness to customers and competitors: the role of affective and cognitive organizational systems, Journal of Marketing, 71(3), 18–38.
  30. Nguyễn, Thành Long và Nguyễn Hậu Lê (2018), Tác động của định hướng sáng nghiệp đối với thành quả hoạt động của doanh nghiệp vừa và nhỏ: Một nghiên cứu ở Việt Nam.
  31. Chen, C. –N., Tzeng, L. –C., Ou, W. –M., & Chang, K. –T. (2007), The relationship among social capital, entrepreneurial orientation, organizational resources and entrepreneurial performance for new ventures, Contemporary Management Research, 3(3), 213–232.
  32. Kraus, S., Rigtering, J. P., Hughes, M., & Hosman, V. (2012), Entrepreneurial orientation and the business performance of SMEs: A quantitative study from the Netherland, Review of Managerial Science, 6(2), 161–182.
  33. Hair, J. F. (1998), Multivariate Data Analysis, Prentice-Hall International.
  34. Correia, R. J., Dias, J. G., & Teixeira, M. S. (2020), Dynamic capabilities and competitive advantages as mediator variables between market orientation and business performance, Journal of Strategy and Management, 14(2), 187–206.
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Copyright (c) 2024 Array