Market orientation and business results among small‐scale service firms

Abstract

Purpose The purpose of this paper is to validate market orientation (MO) and business results scales in an area of significant interest for the literature: namely, service firms of a small and micro‐scale in a market sharing many similarities with Latin America (cultural, social and economic), specifically the Spanish rural tourism market. Design/methodology/approach On the basis of a literature review covering works specializing in MO and its impact on the service sector, and in the characteristics of small‐ and micro‐sized service firms (SMSF), a qualitative and a quantitative study are carried out in Spain, at a national level. Findings The results validate the scales and identify that MO comprises the following dimensions: information‐gathering, dissemination of information, and response to the market. The validated business results scale includes economic/financial results and others of a more personal nature linked to the entrepreneur business owner. Practical implications The work provides knowledge regarding the activities undertaken by SMSF in the area of MO. Professionals from the small‐ and micro‐sized service sector can use this knowledge to plan and design market‐focussed actions that will lead to improved business performance. Originality/value The work validates MO and business results scales that have been widely studied throughout the literature but that leave a significant gap in the case of SMSF operating in Latin American countries. The business base in these countries comprises a large percentage of such small‐scale operations.