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3. Does Market Orientation Lead to Firm Performance? Exploring the Mechanisms and Boundary Conditions.

Author

Akanpaaba, Patrick A., Agyapong, Ahmed, Mensah, Henry Kofi, and Akomea, Samuel Yaw

Subjects
MARKET orientation, ORGANIZATIONAL performance, NEW product development, SMALL business, SOCIAL capital
Abstract

This study explores the mechanisms and boundary conditions that will enhance the effective transformation of the firm's market orientation (MO) into firm market performance (PERF). We examined how MO influences PERF directly and indirectly through the firm's new product development capability (NPDC). We also examined the indirect conditional effect of social capital (SC) on the MO-PERF relationship through the NPDC of the firm. Data from 313 managers and owners of small and medium enterprises (SMEs) in Ghana was used for the study. Data were analyzed using the conditional process analysis software PROCESS in SPSS 23.0. Findings indicate that MO has a significant influence on PERF. Further, NPDC partially mediates the relationship between MO and PERF. We also found the indirect relationship between MO and PERF to be declining at higher levels of SC. The study clarifies the divergent views of the impact of MO on performance by introducing NPDC and SC in the relationship. [ABSTRACT FROM AUTHOR]

Published
2024
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17. The roles of social capital, entrepreneurial orientation and competitive intensity in managerial capability and performance relationship: evidence from an emerging market economy

Author

Akomea, Samuel Yaw, Agyapong, Ahmed, Aidoo, Suzzie Owiredua, Kyei, Simms Mensah, Akomea, Samuel Yaw, Agyapong, Ahmed, Aidoo, Suzzie Owiredua, and Kyei, Simms Mensah

Abstract

Purpose This paper sought to investigate the conditional indirect relationship between managerial capabilities (MCs) and performance amongst small and medium-sized enterprises (SMEs) in the sub-Saharan African economy. The study considered social capital (SC) and entrepreneurial orientation (EO) as parallel mediating mechanisms and competitive intensity as boundary conditions within this relationship. The purpose of this paper is to address this issue. Design/methodology/approach Data were obtained from SMEs (n = 206) in a sub-Saharan African nation. Bootstrapping (Process Macro) and hierarchical regression in statistical package for social sciences (SPSS) were used to analyse the data. Findings The results demonstrate that whereas EO presents a mechanism through which MC influences performance, SC does not mediate the MC–performance relationship. The results further demonstrate that competitive intensity provides various interaction effects such that at high levels of competitive intensity the indirect effect of MC on performance through SC is weakened and strengthened through EO. The study, therefore, provides clarity to the intricate power of interactions of external factors with firm-specific resources. Originality/value The study demonstrates that varying combinations of resources influence performance differently. The authors consider the influence of these mediators simultaneously in attempts to extend theory by buttressing the bundling effect of MC on SC and EO in driving performance. They also highlight the impact of the boundary conditions created by competitive intensity (CI) on these mediated relationships.

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