Market Orientation and Firm Performance among Nigerian SMEs: The Moderating Role of Business Environment

Abstract

The purpose of this study is to examine the relationship between market orientation and firm performance, with the moderating variable of business environment. The study employed a cross sectional research design, using a structured questionnaire survey with a sample of 640 SMEs fully operational in Kano state, a total of 511 valid questionnaires were completed and returned representing 79.8 percent response rate. The finding from the study shows that the relationship between market orientation and firm performance was found to be insignificant; the relationship between the business environment and firm performance was also not significant also. The result of moderation indicated that the business environment was found to moderate on the relationship between market orientation and firm performance. The finding of this study will benefit owner/managers of SMEs, regulatory agencies, government at all levels and will also serve as a frame to future studies. DOI: 10.5901/mjss.2014.v5n23p158