Role of Market Orientation on Innovation Orientation of Manufacturing Small and Medium- Sized Enterprises (SMEs) in the Accra Metropolis, Ghana

Abstract

This study was designed to examine the role of market orientation on innovation orientation of manufacturing SMEs in the Accra Metropolis, Ghana. SMEs have been touted by many economies as a backbone for their growth and hence, economic development. However, many of them struggle to have access to market and appropriate technology needed for expansion. In the light of this, this study sought to investigate this issue in the context of developing country, particularly, Ghana. The research approach adopted for this study was quantitative. In addition, whereas simple random sampling technique was adopted to select 346 manufacturing SMEs from the sample frame obtained from NBSSI, PLS-SEM was employed to analyse the relationship between market orientation and innovation orientation. The study revealed that customer orientation and inter-functional coordination have a significant positive relationship with innovation orientation. However, competitor orientation did not have a significant relationship with innovation orientation. This means that manufacturing SMEs which search and satisfy the needs of customers and also share information about customers across the organisation stand tall in improving on their operational processes, products and market activities.