How collaboration impacts in the market orientation-performance relationship of SMEs? A perspective from belt and road initiative

Abstract

Purpose This article extends knowledge of market orientation (MO) and strategic collaboration by analyzing MO-collaborations in the context of firm performance of small- and medium-sized enterprises (SMEs). Design/methodology/approach A proposed framework built on the Knowledge and resource-based theory was tested using Structural Equation Modelling with data collected from 171 SMEs. Findings This research study supported the direct impact of market orientation on performance as well as the mediating role of collaboration in this focal relationship and assumed it would have a significant role in SME’s performance. Practical implications These findings have noteworthy implications for managers. Managers can focus on potential collaboration in order to acquire the needed assets. Owners-mangers should closely evaluate the FTAs, economic corridors, and regional cooperation agreements like BRI as these sources can lead them to collaboration with international partners. Additionally, it provides insight for entrepreneurs, business practitioners, and stakeholders of SMEs that are already operating or plan to increase their market share. Originality/value The study findings give interesting bits of knowledge to academia, entrepreneurs, and small- and medium-sized enterprises (SMEs). Given that market orientation and collaboration must proceed in parallel to improve firm performance, Assets like MO provide valuable knowledge and information about partners, which will lead to further valuable information to help the SME succeed. This study further extend the KBV theory recommendation that information and knowledge on collaboration works better and integration will be more successful in ‘resource rich’ firms.