The role of SMES’ market orientation in developing countries: a general investigation in four countries
-
Author(s)Farika NikmahLink to ORCID Index: https://orcid.org/0000-0001-8145-3033
,
SudarmiatinLink to ORCID Index: https://orcid.org/0000-0003-1411-8870
,
Cipto WardoyoLink to ORCID Index: https://orcid.org/0000-0002-8319-1716
,
Agus Hermawan
,
Budi Eko SoetjiptoLink to ORCID Index: https://orcid.org/0000-0002-1170-2986
-
DOIhttp://dx.doi.org/10.21511/im.16(4).2020.01
-
Article InfoVolume 16 2020, Issue #4, pp. 1-12
- Cited by
- 1156 Views
-
754 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
SMEs are limited in their business development. This study is built on previous research conducted in four developing countries (Nigeria, South Africa, Turkey and India). It is difficult to access a bank to get a loan, they have no understanding of how to produce quality products or services, and they have no awareness to get used to learning; these are the problems faced by SMEs.
The goal of this study is to find out market-oriented strategies to achieve performance in SMEs that are often ignored because they are too expensive. Review papers were used in order to get the stated aim.
This study found out that market orientation is not carried out by most SMEs. There are high investment costs for this. Market orientation cannot always guarantee the success of their business. Problem solving was chosen as a strategy in an effort to make market orientation roles more visible, like easy access to finance, awareness of the quality of products and services they produce, and the habit of continuing to learn. The government, along with SME owners and other interested parties, makes some appropriate formulations to strengthen the position of SMEs as a driving force of the economy. It was concluded that SMEs must obtain special policies regarding the ease of financing from banks, availability of training organized by the government to raise knowledge of quality and awareness to always learn, and enabling SMEs to compete with large companies.
- Keywords
-
JEL Classification (Paper profile tab)M21, M31, N85, N87
-
References58
-
Tables1
-
Figures0
-
- Table 1. Brief explanation of previous studies
-
- Abdollahi, H., Razm, K., & Tan, H. R. (2014). TQM and market orientation’s impact on SMEs’ performance. Management Science Letters, 887-892.
- Adelekan, S. A., Arogundade, S., & Dansu, O. (2016). Entrepreneurship and Economic Growth in Nigeria: Evidence from Small and Medium Scale Enterprises (SMEs) Financing using Asymmetric Auto-Regressive Distributed Lag. Global Journal of Commerce & Management Perspective, 43-50.
- Agus, A., & Hassan, Z. (2011). Enhancing Production Performance and Customer Performance Through Total Quality Management (TQM): Strategies For Competitive Advantage. Procedia Social and Behavioral Sciences, 24, 1650-1662.
- Ahmad, M. F., Yin, J., Wei, C., & Rahman, N. A. B. A. (2017). The Relationship between TQM Practices with TQM Tools and Techniques in Small and Medium Enterprise (SMEs). MATEC Web of Conferences. EDP Sciences.
- Al-Dhaafri, H. S., & Zien Bin Yusoff, R. (2013). The Effect of Total Quality Management, Enterprise Resource Planning and the Entrepreneurial Orientation on the Organizational Performance: The Mediating Role of the Organizational Excellence – A Proposed Research Framework. International Journal of Business Administration.
- Aminu, I. M. (2015). Mediating Role of Acces to Finance and Moderating Role of Business Environment on the Relationship Between Strategic Orientation Attributes and PErformance of Small and Medium Entreprises in Nigeria. Kedah: School of Business Management Universiti Utara Malaysia.
- Anderson, B. S., & Eshima, Y. (2013). The influence of firm age and intangible resources on the relationship betweenentrepreneurialorientationand firmgrowthamongJapaneseSMEs. Journal of Business Venturing, 28(3), 413-429.
- Angela, R. (2014). SMEs Sector Access to Finance: An Overview. ResearchGate, 431-437.
- Asif, M., Awan, M. U., Khan, M. K., & Ahmad, A. (2013). A model for total quality management in higher education. Qual Quant, 1883-1904.
- Baker, W. E., & Sinkula, J. (1999). Learning Orientation, Market Orientation, and Innovation: Integrating and Extending Models of Organizational Performance. Journal of Market-Focused Management, 295-308.
- Calantone, R. J., Cavusgil, S., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, 31(6), 515-524.
- Chernev, A., & Kotler, P. (2014). Strategic Marketing Management Eight Edition. USA: Cerebellum Press.
- Cravens, D., & Piercy, N. (2010). Strategic Marketing (8th ed.). India: Mc Graw Hil.
- Demirbag, M., & Koh, S. (2006). TQM and market orientation’s impact on SMEs’ performance. Industrial Management & Data Systems, 1206-1228.
- Dollinger, M. J. (1984). Environmental Boundary Spanning and Information Processing Effects on Organizational Performance. The Academy of Management Journal, 351-368.
- Dubihlela, J., & Dhurup, M. (2013). A Factorial Analysis Of The Barriers To Market Orientation Adoption Among Small And Medium Enterprises (SMEs) In A Developing Country. International Business & Economics Research Journal, 1331-1342.
- Dyer, J. H., & Singh, H. (1998). The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage. The Academy of Management Review, 660-679.
- Evbuomwan, G. O., Okoruwa, & Akinyosoye. (2012). Preferences of micro, small and medium scale enterprises to financial products in Nigeria. Journal of Agricultural Economics and Development, 80-98.
- Farrell, M. A. (2000). Developing a Market-Oriented Learning Organisation. Australian Journal of Management, 201-223.
- Farrell, M. A., & Oczkowski, E. (2002). Are Market Orientation and Learning Orientation Necessary For Superior Organizational Performance? ResearhGate.
- Fowowe, B. (2017). Acces to finance and firm performance: Evidence from African countries. Review of Development Finance, 7(1), 6-17.
- Gay, C., & Szostak, B. (2019). Innovation and Creativity in SMEs: Challenges, Evolutions and Prospects. John Wiley & Sons, Inc.
- Hinson, R. E., & Mahmoud, M. (2011). Qualitative Insights into Market Orientation in Small Ghanaian Businesses. International Journal of Marketing Studies.
- Hurley, R. F., & Hult, G. (1998). Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination. Sage Publications, Inc. on behalf of American Marketing Association, 42-54.
- Ismail, M. D., & Alam, S. (2019). Innovativeness and Competitive Advantage among Small and Medium Enterprise Exporters: Evidence from Emerging Markets in South East Asia. The South East Asian Journal of Management, 74-91.
- Jabeen, R., Shehu, A., Mahmood, R., & Mata, B. (2014). TQM and Knowledge MAnagement Impacts on SME Performance. ResearchGate, 23-43.
- Kadir, Hassan, Yusuf, & Abdulaziz. (2014). Poverty reduction through the ICT: Global system for mobile communication (GSM) perspective. Journal of Economics and International Finance, 211-215.
- Keizer, J. A., Dijkstra, L., & Halman, J. (2002). Explaining innovative efforts of SMEs: An exploratory survey among SMEs in the mechanical and electrical engineering sector in the Netherlands. Technovation, 22(1), 1-13.
- Keskin, H. (2006). Market orientation, learning orientation, and innovation capabilities in SMEs An extended model. European Journal of Innovation Management, 396-417.
- Kohli, A. K., & Jaworski, B. (1990). Market Orientation: The Construct, Research Propositions, and Managerial Implications. Joumal of Marketing, 1-18.
- Kok, J. D. (2003). Human Resources MAnagement within small and medium – sized enterprises. Tinbergen Institute Research: (Research Program SMEs and Entrepreneurship.
- Kuntchev, V., Ramalho, R., Meza, J., & Yang, J. (2014). What Have We Learned from the Enterprise Surveys Regarding Access to Credit by SMEs?
- Leavengood, S., Daim, T., & Anderson, T. (2014). Exploring linkage of quality management to innovation. Total Quality Management and Business Excellent.
- Lin, & Yun, C. (1998). Success Factors of Small- and Medium-Sized Enterprises in Taiwan: An Analysis of Cases. Journal of Small Business.
- Martin, B. A., & Martin, J. (2005). Building a Market-Oriented Organizational Environment: An Implementation Framework for Small Organizations. Mid-American Journal of Business, 20(2), 45-58.
- Motwani, J., & Dandridge, T. (1999). Managing Innovation in French Small and Medium-Sized Enterprises. Journal of Small Business Management.
- Narver, J. C., & Slater, S. (1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 20-35.
- Neneh, B. N. (2016). Market orientation and performance: the contingency role of external environment. Environmental Economics, 130-137.
- Pertiwi, Y. D., & Siswoyo, B. (2016). Pengaruh Orientasi Pasar terhadap Kinerja Pemasaran pada UMKM Kripik Buah di Kota Batu. Menakar Peran Profesi sebagai Engine of Reform dalam Pembangunan Global Berkelanjutan Seminar Nasional dan The 3rd Call for Syariah Paper. Surakarta: Syariah Paper Accounting FEB UMS.
- Pierre, A., & Fernandez, A.-S. (2018). Going Deeper Into SMEs Innovation Capacity: An Empirical Exploration of Innovation Capacity Factors. Journal of Innovation Economics & Management, 139-181.
- Ployhart, R. E., & Moliterno, T. (2011). Emergence of Human Capital Resource: A Multilevel Model. The Academy of Management Review, 127-150.
- Rahardjo, P., & Sirait, J. (2009). Pengaruh Orientasi Pasar terhadap Kinerja Bisnis: Suatu Studi pada Industri Ritel dengan Menggunakan Skala Market Orientation. Media Riset Bisnis dan Manajemen, 173-200.
- Rogo, H. B., Shariff, M., & Hafeez, M. (2017). Moderating Effect of Access to Finance on the Relationship between Total Quality Management, Market Orientation and Small and Medium Enterprises Performance: A Proposed Framework. International Review of Management and Marketing.
- Roy, S. K. (2012). Financial Inclusion in India: An Overview. Asian Journal of Multidimensional Research.
- Samat, N., Ramayah, T., & Saad, N. M. (2006). TQM practices, service quality, and market orientation Some empirical evidence from a developing country. Management Research News, 713-728.
- Shariff, M., & Aminu, I. M. (2015). Determinants of SMEs Performance in Nigeria: A Pilot Study. Mediterranean Journal of Social Sciences.
- Shehu, A. M., & Mahmood, R. (2014). Market Orientation and Firm Performance among Nigerian SMEs: The Moderating Role of Business Environment. Mediterranean Journal of Social Sciences.
- Slater, S. F., & Narver, J. (2014). Market Orientation and the Leraning Organization. Journal of Marketing.
- Srimindarti, C. (2004). Balanced Scorecard Sebagai Alternatif Untuk Mengukur Kinerja. Fokus Ekonomi.
- Tambunan, T. T. (2011). Development of Micro, Small and Medium Enterprises and Their Constraints: A Story from Indonesia. Gadjah Mada International Journal of Business, 21-43.
- Tehseen, S., & Sajilan, S. (2016). Impact of Innovative Practices on Business Growth Under The Moderating Impacts of Culture – A Conceptual Model. Review of Integrative Business & Economics Research, 28-46.
- Uma, P. (2013). Role of SMES in Economic Development of India. Asia Pacific Journal of Marketing & Management Review.
- Uncles, M. (2000). Market Orientation. Australian Journal of Management.
- Vieira, V. A. (2010). Antecedents and Consequences of Market Orientation: a Brazilian Meta-Analysis and an International Mega-Analysis. Brazilian Administration Review, 40-58.
- Woldie, A., & Thomas, B. (2018). Financial Entrepreneurship for Economic Growth in Emerging Nations. Hershey: IGI Global.
- Yadav, S. K., & Tripathi, V. (2014). Market Orientation and SMEs Performance. Journal of Entrepreneurship and Management.
- Yunoh, M. N., & Mohd Ali, K. A. (2015). Total Quality Management Approach for Malaysian SMEs: Conceptual Framework. International Journal of Business and Social Science.
- Zebal, M. A., & Goodwin, D. (2012). Market orientation and performance in private universities. Marketing Intelligence & Planning, 339-357.
-
Impact on poverty and income inequality in Malaysia’s economic growth
Rabiul Islam 
,
Ahmad Bashawir Abdul Ghani ,
Irwanshah Zainal Abidin ,
Jeya Malar Rayaiappan
doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
Problems and Perspectives in Management Volume 15, 2017 Issue #1 pp. 55-62 Views: 12038 Downloads: 5745 TO CITE АНОТАЦІЯPoverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.
-
Impact of inflation on economic growth: evidence from Nigeria
Anthony Olugbenga Adaramola ,
Oluwabunmi Dada
doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
Investment Management and Financial Innovations Volume 17, 2020 Issue #2 pp. 1-13 Views: 9347 Downloads: 5625 TO CITE АНОТАЦІЯIn an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.
-
Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe
Serhiy Kozmenko ,
Maxim Korneyev
doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
Accounting and Financial Control Volume 1, 2017 Issue #1 pp. 48-58 Views: 7973 Downloads: 1381 TO CITEThe article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.
