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An association between market orientation and business performance: A case study of small medium enterprises in Sri Lanka


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  1. Authors:
      • Ph. D. Balasundaram Nimalathasan, Afiliation: University of Chittagong, Bangladesh

      • 122|130

  2. Keywords: Market Orientation, Business Performance, SMEs

  3. Abstract:

    In the globalized and highly competitive era of the present day business environment, firms are under constant pressure to build upon their skills and resources for developing distinctive competencies to withstand market challenges. Such competencies can be around either the lower delivered-cost-position or product differentiation. But building competencies around lower product costs and or product differentiation alone is not sufficient. “Market orientation” builds distinctive and sustainable competencies. An attempt to fill this research gap, the present study is instigated on market orientation and business performance as the case of small medium enterprises in Sri Lanka with the samples of ninety. A non-probabilistic sampling method, namely convenience sampling, was used in drawing samples for this study. Secondary data and primary data collections methods were used to conduct the study. In the present study, we analysed our data by employing correlation and regression analysis. For the study, entire analysis was done by personal computer. A well known statistical package ‘statistical package for social sciences’ (SPSS) 13.0 version was used in order to analyze the data. The results revealed that there is a significant association between market orientation and business performance; further, market orientation has statistically positive impact on business performance.

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