Does market orientation pay off without brand orientation? A study of small business entrepreneurs

ABSTRACT

Market orientation and brand orientation are usually modelled as distinct antecedents of business performance, and the simultaneous performance effects of these orientations are empirically under-explored. Moreover, studies of market orientation and branding tend to focus on large corporations and the views of managers rather than the views of small business entrepreneurs. Addressing these research gaps, the current study explores market orientation and brand orientation by empirically testing their simultaneous effects on the business performance of small firms. Using primary data from 328 effective responses gathered from small business entrepreneurs, the study finds that market orientation improves the financial performance of a small firm only if it is implemented through brand orientation and eventually translated into brand performance. The results further indicate that older firms benefit more than younger firms from investing in branding, while younger firms benefit from paying attention to the actions of their rivals.

KEYWORDS:

• Market orientation
• brand orientation
• brand performance
• financial performance
• firm age

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

The authors wish to thank the Centre for Economic Development, Transport and the Environment in Finland and the European Social Fund (ESR) for their financial support for this research.

Notes on contributors

Tommi Laukkanen

Dr Tommi Laukkanen is a professor of marketing in the Business School at the University of Eastern Finland. His research interests include innovation adoption and resistance, consumer behaviour, bank marketing, tourism marketing and brand management. He has published over 100 articles in international peer-reviewed conference proceedings and journals, such as Industrial Marketing Management, Tourism Management, International Marketing Review, International Journal of Information Management, Journal of Small Business Management, Journal of Consumer Marketing, and International Journal of Bank Marketing. He is a frequent reviewer for many journals and a member of editorial boards.

Sasu Tuominen

Dr Sasu Tuominen is a lecturer in marketing in the Business School at the University of Eastern Finland. His research interests relate to branding, corporate image and corporate reputation. He has had articles published in Journal of Small Business Management and Journal of Small Business and Enterprise Development.

Helen Reijonen

Dr Helen Reijonen is a university lecturer in the Business School at the University of Eastern Finland. Her research interests include small business marketing, strategic orientation of small firms, and entrepreneurship. She has published in Industrial Marketing Management, International Marketing Review, Journal of Small Business Management, Marketing Intelligence & Planning, Journal of Strategic Marketing, Journal of Small Business and Enterprise Development, and International Small Business Journal, among others.

Saku Hirvonen

Dr Saku Hirvonen is a university lecturer in marketing in the Business School at the University of Eastern Finland. His research has focused in particular on brand orientation in SMEs. His other research interests include international marketing, brand identity development, and service branding and management. He has published in Industrial Marketing Management, Journal of Strategic Marketing, International Marketing Review and Journal of Brand Management.