Market orientation and Organizational culture's impact on SME Performance: A SEM Approach

Abstract

The purpose of this study is to examine the relationship between market orientation and organizational culture on small and medium enterprise performance (SMEs). A quantitative approach was employed, using a cross – sectional research design. The data were collected through the self – administration method from 640 respondents. SMEs are very important to the economic growth of Nigeria, they serve as a major source of employment, contributes significantly towards the industrial establishment, a source of capital formation, an avenue for the production of intermediate goods and help in the development of craftsmanship. A model was developed based on theoretical consideration to examine the relationship. Structural Equation Modelling (SEM) was employed, which reported a significant and positive relationship between the market orientation and business performance of SMEs. Whereas, the association between organizational culture and business performance was not supported. Implications and future research directions were discussed.