Market orientation and marketing innovation of small and medium enterprises
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Date
2023-02
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Publisher
Kampala International University, College of Environmental Science and management
Abstract
Globally, the small and medium enterprises are considered as engine of economic growth and
development due to their contributions to poverty reduction, wealth creation and employment
generation. But yet, in African context, a number of small and medium enterprises (SMEs) are
forced to closedown in almost daily basis. As a result, only a small portion of them have been
able to create wealth and employment beyond the first 3-5 years of inception. Prior studies have
shown that, this problem could be resolved if evidence on the effect of market orientation
on marketing innovation is established. The main objective of this study was to investigate the
relationship between market orientation and marketing innovation of SMEs in Yobe State,
Nigeria. To do this, the precise links of the effect of the dimensions of market orientation namely
customer orientation, competitive orientation and inter-functional orientation on marketing
innovation dimensions that include marketing product space, marketing process space, and
marketing relationship space were examined. Building on the assumptions of resource-based
view and market orientation theory, the current study used a cross-sectional and descriptive
research design to collect data from the target respondents using a combination of the qualitative
and quantitative methods (mixed methods approach). The research population comprised 2852
SMEs owner/managers and the sample size was 400 target respondents with a valid response
of 376. Questionnaire and interviews were the primary source of data for research. Validity and
reliability tests were carried out. Data analysis was done using mean, standard deviations,
multiple linear regression and hierarchical regression analysis with the aid of SPSS software
version 23. The study found that customer orientation significantly affects marketing innovation
(β=0.610, p=0.00 < 0.05). Furthermore, competitor orientation was found to significantly affect
marketing innovation (β=0.438, p=0.00 < 0.05). Similarly, inter-functional orientation was found
to significantly affect marketing innovation (β=0.633, p=0.00 < 0.05). Firm age was found to
moderate the relationship between market orientation and marketing innovation (β=0.679,
p=0.00 < 0.05). In line with the research objectives, the study recommends that SMEs in Yobe
state should take marketing innovation seriously since it plays a crucial role in how well they
treat their customers and respond to competitors threats which in turn increase their chances of
building a sustain competitive advantage and subsequence performance. Therefore, frequent
marketing innovation should be used to identify the tastes and needs of customers which in turn
improve both financial and non-financial performance of SMEs. Theoretically, the study
provided implication by giving additional empirical evidence on the domain of the resource
based view and market orientation theories to guide SMEs managers in adoption of marketing
innovation. The study serves as reference to entrepreneurs and SMEs managers who are
interested in achieving competitive advantage and profitable performance under the influence
market orientation. The current findings support the assumptions of both resource based view
and market orientation theories.
Description
A dissertation submitted to the college of economics and management sciences in fulfillment for the requirements for the award of doctor of philosophy in management science (entrepreneurship) of Kampala International University, Uganda
Keywords
Market orientation, Marketing innovation, Medium enterprises