Market Orientation and Performance: An Empirical Study of British SMEs

Abstract

In the context of small- and medium-sized enterprises (SMEs) in the UK, this paper investigates two key areas: the effects of market orientation on dimensions of performance and the moderating influences of market dynamism, competitive hostility and market growth on the market orienta tion- performance relationship. The authors find evidence of the existence of a strong and positive relationship between market orientation and sales growth of SMEs. The analysis also highlights the decisive role of competi tive environment in determining SME performance. The paper, however, cautions against overemphasising competitive influences to the neglect of distinctive capabilities of firms.