Relationships between Market and Entrepreneurial Orientation and Organizational Performance: Empirical Evidence from Small and Medium Scale Garment Manufacturers in Sri Lanka

Abstract

The literature indicates that small and medium scale firms are quite different with respect to their utilization of business practices. Thus, the study endeavours to address the relationships between the market and entrepreneurial orientation, and organizational performance. The study derived two hypotheses in relation to the relationship between market orientation and entrepreneurial orientation, and organisational performance in the attempt to examine how both the orientations contribute to the organizational performance of small and medium entrepreneurs in garment industry at Southern province, Sri Lanka. The sample of the study consisted of 175 respondents representing small and medium scale entrepreneurs in the Southern Province Sri Lanka. A structured questionnaire was administered to the sample respondents to collect data. The data were analyzed with Partial Least Squares path modeling (PLS) to test the hypotheses of the study. The results indicated that the hypotheses were statistically significant and all effects were in the expected direction.

Market Orientation, Entrepreneurship Orientation, and Company Performance: Study on Small and Medium Industries (SMES) Furniture in Demak District

“…Hult et al (2004) and Lumpkin and Dess (1996) in Wijesekara et al (2014) states that entrepreneurial orientation is a process, practice and decision making activity that leads to entrepreneurship. Drucker (1994) defines an entrepreneurial orientation as a character or trait attached to the real business world and can develop them with resilience.…”

“…In the organizational performance literature model, several aspects are used as indicators to measure organizational performance. According to Brett (2000) in Wijesekara et al (2014), company performance covers three main aspects, namely output or performance operating (for example finance, productivity, and efficiency), outcome or delivery performance (eg effectiveness, strategy, and quality) and process performance (involving both operating performance and delivery performance). Venkatraman and Ramamujam (1986) state that company performance using perspective is operational performance measured through market share, new product introductions, marketing effectiveness, and various measures of technological efficiency related to business performance.…”

“…Previous studies have shown the importance of market orientation and entrepreneurial orientation on company performance (eg Bucktowar et al, 2015;Hussain et al, 2016;Merio and Auh, 2009;Wijesekara et al, 2014). Market orientation(market orientation) and the orientation of entrepreneurship (entrepreneurial orientation) is part of the strategic orientation, the second component of the strategic orientation is intangible resources that guarantee the company survive in the long term and encourage the achievement of superior performance (Herath and Mahmood, 2014and Ruokonen and Saarenketo, 2009in Hussain et al, 2016.…”

Marketing Performance Influenced by Market Orientation Through Value Creation

“…In addition, Reference [25] stated that market orientation has a positive and significant impact on the performance of SMEs in Malaysia. The same thing is also refrence [6] stated that market orientation has a positive and significant role on marketing performance as shown in Figure 1. Based on previous research, the link between market orientation and marketing performance.…”

Innovation as Intervening Variable between Entrepreneurial Orientation and Learning Orientation with Company Performance on MSEs in Ambon City

“…al., 2009). A number of studies have shown that entrepreneurial orientation either directly or indirectly has a positive relationship with company performance (Wijesejara, et. al., 2014;Meutia, 2013;Pratono, et.…”