Academic journal article International Journal of Marketing Studies

Market Orientation and the Performance of Small and Medium-Sized Manufacturing Enterprises in the Accra Metropolis

Academic journal article International Journal of Marketing Studies

Market Orientation and the Performance of Small and Medium-Sized Manufacturing Enterprises in the Accra Metropolis

Article excerpt

Abstract

The importance of small and medium-sized manufacturing enterprises as an engine of economic growth has been widely recognized. However, despite their invaluable contribution in the Ghanaian economy, their performance has not been impressive due to the orientation of their marketing strategies. This study, therefore, sought to investigate the relationship between market orientation and the performance of small and medium-sized manufacturing enterprises in the Accra metropolis of Ghana. Given the purpose and nature of this study where most of the analyses were quantitative in nature, quantitative research approach was deemed the most appropriate and, therefore, adopted. The descriptive and correlational study designs, too, were adopted for this study. Simple random sampling technique, specifically lottery method, was used to select 346 small and medium manufacturing enterprises in the Accra metropolis. Regression analysis was used to test the hypotheses postulated. It was observed from the findings that positive relationship exists between market orientation and small and medium-sized manufacturing enterprises performance. This means that market orientation contribute positively to the well being of small and medium-sized manufacturing enterprises. The study recommends that policy makers as well as National Board for Small Scale Industries should sensitize owners/managers of small and medium-sized manufacturing enterprises about the importance of employing market orientation practices in their business operations.

Keywords: market orientation, performance, manufacturing, SMEs

1. Introduction

In today's globalised and highly competitive business environment with environmental conditions changing continuously, the success of an organisation shall be possible by obtaining, keeping and maintaining the competitive advantage. In order to obtain and maintain competitive advantage, firms should direct their affairs to be market-oriented and consistently create higher values for their customers (Naktiyok, 2003). Thus, the customer is the main focus for any successful business. Business success depends on a firm's understanding and meeting customers' needs and demands (Boohene & Agyapong, 2011). Therefore, to compete and survive in the severely competitive marketplace, firms have to pay more attention to the needs and wants of customers.

Organisations world-wide, as a matter of necessity, must endeavour to take the right steps towards achieving their objectives of satisfying the needs and wants of their customers. In view of this, a careful method is often chosen to help organisations to understand their customers, competitors and the various environmental variables, which could determine their success or failure (Kotler & Armstrong, 2006). Consequently, the field of marketing is, therefore, called into play to help organisations swim through these delicate and sensitive territories. The success of organisations, therefore, hinges on the one that understands the needs, wants and the changing tastes and preferences of customers.

Following the works of Walker (2001) and Webster (1988), until the mid -1950s, the traditional view of marketing held that greater sales volume by organisations was a key to profitability, and, therefore, it was the responsibility of marketing to sell whatever the firm could produce through the use of marketing communications techniques to influence consumer behaviours. As a result, several marketing philosophies, including production orientation, and selling orientation have been adopted by organisations to achieve this objective (Avlontis & Gounaris, 1999; Diamantopolous & Hart, 1993). However, most of the approaches were "inside-out" method with little or no focus on the external (customers) environment, hence the adoption of the marketing concept (Dobni & Luffman, 2000; Felton, 1959; Kotler & Armstrong, 2006; Levitt, 1965). The marketing concept holds that organisations can achieve their objectives in the marketplace through the satisfaction of customer needs. …

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