Market orientation and performance measurement system adoption impact on performance in SMEs
Länsiluoto, Aapo; Joensuu-Salo, Sanna; Varamäki, Elina; Viljamaa, Anmari; Sorama, Kirsti (2018)
Wiley-Blackwell
2018
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201802212658
https://urn.fi/URN:NBN:fi:amk-201802212658
Tiivistelmä
Abstract
Previous research has shown a connection between market orientation (MO) and firm performance, as well as between performance measurement systems (PMS) adoption, but their mutual interactions are as yet little understood in SMEs. Using empirical data collected by a survey from 123 Finnish SMEs we analyze the relationship between MO, PMS adoption and performance. According to the results, MO has positive relationships with PMS adoption and non-financial performance. However, the impact of MO on financial performance is mediated by PMS adoption. PMS adoption is thus an important factor in explaining variance in firm performance. Finally, empirical analysis shows that the larger SME firms adopt PMS more extensively.
Keywords: Market orientation, performance measurement systems, firm performance, small firms
Previous research has shown a connection between market orientation (MO) and firm performance, as well as between performance measurement systems (PMS) adoption, but their mutual interactions are as yet little understood in SMEs. Using empirical data collected by a survey from 123 Finnish SMEs we analyze the relationship between MO, PMS adoption and performance. According to the results, MO has positive relationships with PMS adoption and non-financial performance. However, the impact of MO on financial performance is mediated by PMS adoption. PMS adoption is thus an important factor in explaining variance in firm performance. Finally, empirical analysis shows that the larger SME firms adopt PMS more extensively.
Keywords: Market orientation, performance measurement systems, firm performance, small firms