THE EFFECT OF MARKET AND ENTREPRENEURIAL ORIENTATIONS ON ORGANIZATIONAL PERFORMANCE: STUDY OF MALAYSIAN SMES

Abstract

In today's competitive business environment, firms that are not market and
entrepreneurially oriented disappear from the market within no time. This study is
aimed to examine the effect of market orientation (MO) and entrepreneurial orientation
(EO) on firm organizational performance (OP) of small and medium sized enterprises.
Structured questionnaires were distributed to 300 SMEs in Johor, Malaysia using
random sampling technique. These SMEs belonged to both manufacturing and services
sector. 139 completed questionnaires were returned showing the response rate of 46%.
Data was analyzed through correlation and regression analysis. Results of the study
show that both market and entrepreneurial orientations affect positively the
organizational performance. This study provides insights to researchers, practitioners
and managers on the significance of market and entrepreneurial orientations for the
survival and growth of SMEs.