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Enhancing the performance of micro‐enterprises through market orientation: Evidence from Harare, Zimbabwe
Author(s) -
Chikerema Lyn,
Makanyeza Charles
Publication year - 2021
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.22075
Subject(s) - market orientation , business , orientation (vector space) , space (punctuation) , industrial organization , marketing , computer science , geometry , mathematics , operating system
In most developing economies, micro‐enterprises provide an important source of jobs and make a major contribution to economic growth. However, many of these businesses struggle and often fail within a short space of time. This study was conducted to understand the extent to which micro‐enterprises have implemented market orientation, the effect of market orientation and its associated dimensions on performance, and the influence of a manager's individual characteristics on the relationship between market orientation and performance. Data were collected from a cross‐section of 342 managers of micro‐enterprises, which were randomly selected from local industries in Harare, the capital of Zimbabwe. The results show that competitor orientation, inter‐functional coordination, and market orientation each had a significant positive effect on performance. However, it was also found that managers' characteristics—gender, age, and education—did not moderate the effect of market orientation on performance. The results indicate that micro‐enterprises should embrace market orientation to improve their performance.