Why do market orientation, product innovation capability, marketing performance, and competitiveness of small and medium-scale enterprises differ?

Onan Marakali Siregar, Selwendri and Muhammad Dharma Tuah Putra Nasution

International Journal of Productivity and Quality Management, 2025, vol. 45, issue 2, 165-186

Abstract: The study aims to explore how market orientation, product innovation capability, and marketing performance relate and differ in influencing competitive advantage among small and medium-scale enterprises (SMEs). Employing a quantitative method, the research involves SME business owners and managers from three different types of SMEs. A Bayesian regression model was utilised to test the hypothesised research model. Empirical findings indicate that market orientation, product innovation capability, and marketing performance positively and significantly correlate with competitive advantage. While driving firms to enhance competitiveness, notable differences in SMEs' characteristics concerning market orientation, product innovation capability, marketing performance, and competitive advantage underscore their importance. This study contributes to enriching the body of knowledge, particularly in understanding the interconnectedness among these constructs as integral elements of competitive advantage's definitions and origins. The practical implications are expected to guide business owners and managers in making more informed and appropriate decisions.

Keywords: market orientation; product innovation capability; marketing performance; competitive advantage; small and medium-scale enterprises; SMEs. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=146636 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijpqma:v:45:y:2025:i:2:p:165-186

Access Statistics for this article

More articles in International Journal of Productivity and Quality Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().