The impact of market orientation on manufacturing SME performance in Malaysia with the moderating effect of e-commerce

Abstract

Small and medium enterprises (SMEs) are considered as the mainstay of any economy since they contribute towards employment and growth. However, although Malaysia is a fast developing country in South-East Asia [1], SMEs in manufacturing sector faces failures. Many studies have revealed that market orientation has positive impact on business performance. However, the literature is inconsistent; therefore, this article proposes to explore the effect of market orientation (MO) on manufacturing small and medium enterprises (SMEs) and the moderating role of e-commerce on the relationship between the two constructs. This could help to enhance SME performance in manufacturing sector in Malaysia in order to avoid failure and maintain success. In addition, this study aims to enrich the literature concerning the effects of market orientation on SME success within the Malaysian context taking into consideration the moderating effect of e-commerce. To the best of the researcher knowledge, the current study is the first to examine such moderator on MO-performance relationship. Drawing upon resource based view theory, a research model is developed and need to be tested on manufacturing SMEs in Malaysia.