Market Orientation and Performance: Do the Findings Established in Large Firms Hold in the Small Business Sector?

ABSTRACT This study examined whether the market orientation-performance link established in large firm studies hold in the small business sector and tested for the possible effects of market growth, competitive intensity, market and technological turbulence on any identified relationships. Specific performance measures used were new product success, sales growth and ROI. Based on constructs of the aforementioned variables, a research instrument was developed for the study and data were gathered through a self-administered mail survey among a U.K. sample of small firms. Our findings suggest that there is a positive impact of market orientation upon small business performance. In addition, evidence is provided on the mixed effects of the competitive environment on the market orientation-performance relationship. To conclude, we discuss implications of the findings for small business managers as well as study limitations and future research directions.