An Empirical Analysis of Market Orientation and Business Performance Relationship in the Context of Developing Economy

Abstract

The objective of this study is to investigate the relationship between market orientation and business performance of small and medium enterprise (SMEs) in Nigeria. A quantitative method was used, employing a cross - sectional research design. The data were collected through the self - administration method from 320 respondentsusing a structured questionnaire, a total of 212 valid questionnaires was completed and returned representing 66 percent response rate. SMEs are very important to the economic growth of Nigeria, they serve as a major source of employment, contributes toward local resource utilization, a source of entrepreneurship development, an avenue for the conservation of foreign exchange, ensures equitable distribution of income and wealth and help in the preservation of cultural heritage. A model was developed based on theoretical reflection to examine the relationship. Smart PLS is used in the data analysis, which reported a significant and positive relationship between the market orientation and business performance of SMEs. The findings of this study will benefit owner/managers of SMEs, regulatory agencies, government at all levels and will also serve as a frame of reference for future studies, and future research directions were discussed.