The recent report on SMEs across the country asserted that the contribution of SMEs to GDP and employment is not encouraging (Ndumanya, 2013; SMEDAN, 2012). The mortality rate of SMEs in the country is now about 80% before their fifth year anniversary, which was 15% in 2002 (SMEDAN, 2012). Hence, this indicates the low growth and high mortality rate of SMEs in the country. Consequently, the performance of SMEs in Nigeria is considered to be below expectations compared to other lower middle income countries (Ndumanya, 2013). Recently, Malam Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria (CBN) affirmed that Nigerian SMEs cannot perform to expectations because of certain constraints related to financing, as a result of their unprofitable business operations (Bangudu, 2013a; Sanusi, 2013). Based on these, some of the studies have reported a significant relationship between EO and firm performance (Fairoz et al., 2010; Li, Huang, & Tsai, 2009; Lumpkin & Dess, 2001; Madhoushi, Sadati, Delavari, Mehdivand, & Mihandost, 2011; Yang, 2008; Zhang & Zhang, 2012). In contrast, other studies (Alegre & Chiva, 2009; Baker & Sinkula, 2009; Slater & Narver, 2000; Stam & Elfring, 2008) find no significant relationship between EO and performance. In other studies, EO is found to have a U shaped relationship with performance (Kreiser, Marino, Kuratko, & Weaver, 2013; Su et al., 2011; Tang, Tang, Marino, Zhang, & Li, 2008; Tang & Tang, 2012). MO is another key element of strategic orientation, it consists of all marketing concept activities. Practically, it is an implementation of the marketing concept within the business organization (Shapiro, 1988). Many studies have reported a significant effect of MO on firm performance (Baker & Sinkula, 2009; Farrell & Oczkowski, 2002; Harris & Ogbonna, 2001; Long, 2013; Mavondo et al., 2005; Slater & Narver, 2000). In contrast MO is found to have no significant impact on firm performance (Ferraresi et al., 2012; Haugland, Myrtveit, & Nygaard, 2007; Jiménez-Jimenez, Valle, & Hernandez-Espallardo, 2008; Keskin, 2006; Polat & Mutlu, 2012; Suliyanto & Rahab, 2012). Some studies show that MO has effect only on subjective performance (Farrell, Oczkowski, & Kharabsheh, 2008; Jaworski & Kohli, 1993) while it has no significance with objective performance. In line with Slater and Narver (1995), market-oriented firms must develop a LO culture in order to be successful. Thus, this study includes LO which involves practices and assumptions about how firms learn from the business environment (Sinkula, Baker, & Noordewier, 1997). Several studies report a significantly positive relationship between LO and performance of the firm (Farrell et al., 2008; Kropp et al., 2006; Lee & Tsai, 2005; Mahmoud & Yusif, 2012; Nikoomaram & Ma’atoofi, 2011). Mavondo et al. (2005) report negative relationship between LO and firm performance. In contrast, some studies report an insignificant impact of LO on firm performance (Farrell & Oczkowski, 2002; Jiménez-Jimenez et al., 2008; Long, 2013; Suliyanto & Rahab, 2012). Success and performance of business firms depend largely on their TO and innovation superiority (Gatignon & Xuereb, 1997). Similarly, Salavou (2010) finds that the product performance depends on the TO of the firm, particularly in terms of newness of the product to customers. In contrast, a study on strategic orientations and firm performance states that the TO has no effect on any of the subjective and objective firm performance (Voss & Voss, 2000). In addition, topics on strategic orientations and firm performance literature refer to the suggestions that firms should consider their business environment. Several studies have associated firm performance with supportive business environment (Awang et al., 2009; Goll & Rasheed, 2004; Jong & Thai, 2008). Business environment is theoretically recognized as a potential moderating variable that can influence strategic orientations and firm performance relationship (Barney, 1991). Awang et al. (2009) stresses that strategic orientations study seems to be incomplete without environmental eventualities affecting the relationship. Similarly, Frank et al. (2010) conclude that strategic orientations are characterized by environment and cultural differences. In the light of above mentioned please newer the following question. Suggest any appropriate research topic for above-mentioned scenario and describe briefly? Identify latent variables of independent, dependent, moderating variable and develop theoretical framework? Discuss logical justification of latent variables (independent, dependent, moderating variable)? Develop research questions, research objectives and research hypothesis?
Case study
The recent report on SMEs across the country asserted that the contribution of SMEs to GDP and employment is not encouraging (Ndumanya, 2013; SMEDAN, 2012). The mortality rate of SMEs in the country is now about 80% before their fifth year anniversary, which was 15% in 2002 (SMEDAN, 2012). Hence, this indicates the low growth and high mortality rate of SMEs in the country. Consequently, the performance of SMEs in Nigeria is considered to be below expectations compared to other lower middle income countries (Ndumanya, 2013). Recently, Malam Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria (CBN) affirmed that Nigerian SMEs cannot perform to expectations because of certain constraints related to financing, as a result of their unprofitable business operations (Bangudu, 2013a; Sanusi, 2013).
Based on these, some of the studies have reported a significant relationship between EO and firm performance (Fairoz et al., 2010; Li, Huang, & Tsai, 2009; Lumpkin & Dess, 2001; Madhoushi, Sadati, Delavari, Mehdivand, & Mihandost, 2011; Yang, 2008; Zhang & Zhang, 2012). In contrast, other studies (Alegre & Chiva, 2009; Baker & Sinkula, 2009; Slater & Narver, 2000; Stam & Elfring, 2008) find no significant relationship between EO and performance. In other studies, EO is found to have a U shaped relationship with performance (Kreiser, Marino, Kuratko, & Weaver, 2013; Su et al., 2011; Tang, Tang, Marino, Zhang, & Li, 2008; Tang & Tang, 2012).
MO is another key element of strategic orientation, it consists of all marketing concept activities. Practically, it is an implementation of the marketing concept within the business organization (Shapiro, 1988). Many studies have reported a significant effect of MO on firm performance (Baker & Sinkula, 2009; Farrell & Oczkowski, 2002; Harris & Ogbonna, 2001; Long, 2013; Mavondo et al., 2005; Slater & Narver, 2000). In contrast MO is found to have no significant impact on firm performance (Ferraresi et al., 2012; Haugland, Myrtveit, & Nygaard, 2007; Jiménez-Jimenez, Valle, & Hernandez-Espallardo, 2008; Keskin, 2006; Polat & Mutlu, 2012; Suliyanto & Rahab, 2012). Some studies show that MO has effect only on subjective performance (Farrell, Oczkowski, & Kharabsheh, 2008; Jaworski & Kohli, 1993) while it has no significance with objective performance.
In line with Slater and Narver (1995), market-oriented firms must develop a LO culture in order to be successful. Thus, this study includes LO which involves practices and assumptions about how firms learn from the business environment (Sinkula, Baker, & Noordewier, 1997). Several studies report a significantly positive relationship between LO and performance of the firm (Farrell et al., 2008; Kropp et al., 2006; Lee & Tsai, 2005; Mahmoud & Yusif, 2012; Nikoomaram & Ma’atoofi, 2011). Mavondo et al. (2005) report negative relationship between LO and firm performance. In contrast, some studies report an insignificant impact of LO on firm performance (Farrell & Oczkowski, 2002; Jiménez-Jimenez et al., 2008; Long, 2013; Suliyanto & Rahab, 2012).
Success and performance of business firms depend largely on their TO and innovation superiority (Gatignon & Xuereb, 1997). Similarly, Salavou (2010) finds that the product performance depends on the TO of the firm, particularly in terms of newness of the product to customers. In contrast, a study on strategic orientations and firm performance states that the TO has no effect on any of the subjective and objective firm performance (Voss & Voss, 2000).
In addition, topics on strategic orientations and firm performance literature refer to the suggestions that firms should consider their business environment. Several studies have associated firm performance with supportive business environment (Awang et al., 2009; Goll & Rasheed, 2004; Jong & Thai, 2008). Business environment is theoretically recognized as a potential moderating variable that can influence strategic orientations and firm performance relationship (Barney, 1991). Awang et al. (2009) stresses that strategic orientations study seems to be incomplete without environmental eventualities affecting the relationship. Similarly, Frank et al. (2010) conclude that strategic orientations are characterized by environment and cultural differences.
In the light of above mentioned please newer the following question.
- Suggest any appropriate research topic for above-mentioned scenario and describe briefly?
- Identify latent variables of independent, dependent, moderating variable and develop theoretical framework?
- Discuss logical justification of latent variables (independent, dependent, moderating variable)?
- Develop research questions, research objectives and research hypothesis?
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