Strategic orientation, innovation and performance in new SMEs: the role of marketing

Abstract

Although the important role that new SME have for economic development, the relationship among three key strategic orientations as Entrepreneurial orientation (EO), Market orientation (MO) and Learning orientation (LO) with innovation and new SME´s success has not been previously analyzed. Present studies on this mater are partial because they focus in only one or two of these orientations (Li and Atuahene-Gima, 2001; Renko et al.,2009). Thus, the present research aims to fill this gap by developing a model to explain the relationship among EO, MO and LO, innovation and new SME performance and test this model within a sample of new SMEs. Empirical results from a sample of 203 new SMEs show that there is direct relationship between Market orientation (MO) and business performance, and also an indirect relationship among MO and performance through LO, EO and Innovation. However, the relationship between LO and EO with performance is only indirect, through Innovation. In summary, marketing has a critical role on the success of new SMEs.

Keywords

• Strategic orientation
• Market orientation
• Innovation
• New SMEs