Title: Relational capabilities in market orientation to improvement of performance outcomes in SMEs

Authors: Reza Shafei; Mehran Zohdi

Addresses: University of Kurdistan, Gharadian, Pasdaran Blvd., Sanadaj, Iran ' Young Researchers and Elite Club, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran

Abstract: This paper analysed the intermediary effect of market orientation as a variable that can change the business performance of some markets especially SMEs. Market orientation which plays a significant role in marketing and give rise to the organisation's competitive advantage and success and relational capabilities with the ability to collaborate with diverse organisations have been identified as crucial. We contacted 260 industrial companies in developing provinces in Iran; data were analysed using principal component analysis and structural equation modelling procedures. The results showed a significant positive correlation between market orientation and relational capabilities. Also the findings explained that an interventional effect of market orientation will improve the company's performance. The results of this study provide new insights into the role of relational capabilities as well as important theoretical and managerial implications.

Keywords: relational capabilities; market orientation; business performance; developing countries; SMEs; Iran; performance outcomes; small and medium-sized enterprises; competitive advantage; collaboration; industrial sector; SEM; structural equation modelling; PCA; principal component analysis; intervention; firm performance.

DOI: 10.1504/IJBPM.2014.065009

International Journal of Business Performance Management, 2014 Vol.15 No.4, pp.295 - 315

Received: 03 Aug 2013
Accepted: 07 Mar 2014
Published online: 30 Sep 2014 *

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