Impact of market orientation on relational capabilities Case of: Kermanshah industrial city SMEs

Document Type : Articles

Authors

• Mehran Zohdi
• Reza Shafeai
• Reza Hashemi

https://doi.org/10.22067/pmt.v4i8.23477

Abstract

Nowadays, the pioneer companies are trying to increase their profitability through satisfying the needs of their customers by using the best possible way. Therefore, market orientation strategy is considered to be the key to organizational success. Market orientation is a major issue in management of the market and potential customers and with its positive relation with the business performance of small firms, leads corporate performance towards customers and market needs. Therefore the current research studies the effect of market orientation on the relational capabilities of small companies of Kermanshah Industrial city. Seven hypotheses were proposed for this purpose. The research method, according to the purpose of applied research and the manner of data collection is a descriptive and the analyzing of the model specifically is based on structural equation modeling (SEM) using AMOS software. The Statistical population included managers of small and medium size enterprises operating in the city of Kermanshah. Stratified sampling method, observations related to the questionnaire and variables of each question of the hypothesis were presented with a scale of 1 to 20. The results of the current research showed significant meaningful positive correlation between market orientation and relational capabilities. The overall obtained results of testing the research hypotheses were confirmed the proposed relations of the research. In the studied model, the value of indexes of fit (CFI = 0.916 and NFI =0.909) demonstrated the suitability of the model.

Keywords

• Market orientation
• Relational capabilities and industrial small and medium enterprises (SMEs)
• Structural equation model (SEM)

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