Abstract

THE AIMS OF THE PAPER This study aimed to examine the relationship between the market orientation and the performance of SMEs in the Hungarian food and agriculture sector. METHODOLOGY The market orientation was defined by the internationally validated MKTOR scale, which has been adapted to and validated for the Hungarian food and agriculture sector by using exploratory and confirmatory factor analysis. The business performance was measured by a three-dimension indicator based on the subjective perception of performance. The basis of the primary research was a personal interview survey representative by firm size and scope of activity, conducted among the marketing staff (or in the absence of this, the executives) of 250 agricultural and food sector firms, queried by interviewers. The relationship between market orientation and business performance was tested by structural equation modelling (SEM). MOST IMPORTANT RESULTS Based on our primary research, the most common measure of market orientation, i.e. the MKTOR scale can be seen as obsolete now. Besides, SEM revealed a positive relationship between the extent of market orientation and the performance of the firms, moreover, similar relationships were found between the market orientation and the specific dimensions of business performance. RECOMMENDATIONS For the researchers to gain accurate understanding of market orientation, it is necessary to develop the methodology related to the research of market orientation, as well as to adapt the scales measuring market orientation. Since an increase in the market orientation leads to better performance, businesses have to place particular emphasis on developing their market orientation. Acknowledgement: This publication was supported by the EFOP-3.6.2-16-2017-00003 project. The project is co-financed by the European Union and the European Social Fund.

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