2018RePEc: Research Papers in EconomicsRequires access

The mediating role of innovativeness in the relationship between market orientation and performance: an application to Senegalese agri-food VSEs

Balla Doucouré, Fatiha Fort, Ibrahima-Samba Dankoco

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Abstract

In a managerial discourse, market orientation and innovativeness are considered imperative to firms' competitiveness. Research on them has particularly focussed on medium and large companies in Europe and the United States, while others have focussed on market orientation's impact on the performance of very small enterprises (VSEs) in developed countries. However, the role of innovativeness in the relationship between market orientation and performance, in micro-enterprises based especially in Africa, is less studied. This research proposes a conceptual model to assess market orientation's impact on VSE performance and establishes the mediating role of innovativeness in this relationship. Focusing on small food processing units and vegetable producers, a sample of VSEs for collecting primary data was compiled from a survey of 150 VSE leaders. A structural equation model was used, based on the LISREL approach. Results confirm a direct link between market orientation and performance, and demonstrate the mediating role of innovativeness.

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What this paper is about

In a managerial discourse, market orientation and innovativeness are considered imperative to firms' competitiveness. Research on them has particularly focussed on medium and large companies in Europe and the United States, while others have focussed on market orientation's impact on the performance of very small enterprises (VSEs) in developed countries. However, the role of innovativeness in the relationship between market orientation and performance, in micro-enterprises based especially in Africa, is less studied. This research proposes a conceptual model to assess market orientation's impact on VSE performance and establishes the mediating role of innovativeness in this relationship. Focusing on small food processing units and vegetable producers, a sample of VSEs for collecting primary data was compiled from a survey of 150 VSE leaders. A structural equation model was used, based on the LISREL approach. Results confirm a direct link between market orientation and performance, and demonstrate the mediating role of innovativeness.

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Available abstract

In a managerial discourse, market orientation and innovativeness are considered imperative to firms' competitiveness. Research on them has particularly focussed on medium and large companies in Europe and the United States, while others have focussed on market orientation's impact on the performance of very small enterprises (VSEs) in developed countries. However, the role of innovativeness in the relationship between market orientation and performance, in micro-enterprises based especially in Africa, is less studied. This research proposes a conceptual model to assess market orientation's impact on VSE performance and establishes the mediating role of innovativeness in this relationship. Focusing on small food processing units and vegetable producers, a sample of VSEs for collecting primary data was compiled from a survey of 150 VSE leaders. A structural equation model was used, based on the LISREL approach. Results confirm a direct link between market orientation and performance, and demonstrate the mediating role of innovativeness.

Key concepts: LISREL, Market orientation, Structural equation modeling, Business, Industrial organization, Sample (material), Marketing, Conceptual model

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