Effect of Market Orientation on SMEs Performance

Abstract

The scholarly focus on market orientation and related issues picked pace after the evolution of newlinesignificant contributions made by Narver and Slater (1990) and Kohli and Jaworski (1990).Initially newlinemajority of research contributions were focused towards the developed economies and newlinesubsequently the validation of market orientation and performance relationship was started by newlinenumerous researchers across different contexts (Hunt and Morgan, 1995; Shapiro, 1988; newlineDeshpande et al., 1993, Kirca, et al.,2005; Oyedijo,A. 2012; Dia- Mantopoulos and Hart,1993; newlineGreenley,1995). However, the contemplation of these studies attributed to the existence of a newlinemixed relationship viz, Deng and Dart, (1994); Slater and Narver, (1998) supports a positive newlinerelationship, Grewal and Tansuhaj (2001) found a negative relationship and Baker and Sinkula newline(1999) found no relationship between these two constructs. The possible reasons for such newlineambiguous relationship was identified as the effect of environmental factors (external and newlineinternal factors); cultural and sectorial diversities (Gaur, et al. 2011; Sullivan and Butler 2009; Sin, newlineet al., 2003) and innovation (Rosenbusch et al. 2011) on market orientation and firm newlineperformance relationship. These researches contributes significantly in developing understanding newlineabout market orientation and firm s performance linkage in developed countries large scale firms newlinescenario. Contrary, however small businesses have always been considered as the growth engine newlineof developing economies, very little attention is given on market orientation research in these newlineparts of the world (Ramesh and Ramesh 2014, Cano et al., 2004, Becherer, et al. 2001). The newlinecontribution of small-scale firms in the world s economy is increasing day by day and more newlinespecifically in a country like India, where the study is situated, small-scale firms have acquired a newlinedominant position in the development of the country. According to the world banks report