The Dynamic Trio: Market Orientation, Innovativeness and Psychological Business Performance

Abstract

Considering market orientation and innovativeness as a continuous effort put into the development of the business performance of all kinds, scholarly interest in these concepts has consistently enhanced in the past few decades. The objective of the current study is to ascertain how the constructs of market orientation and innovativeness affect the performance of SMEs. 343 SMEs in the Punjab state of India were surveyed for the study. The results show market orientation and innovativeness are positively related to psychological business performance. Market orientation and innovativeness constructs provides considerable ideas for the development of new products, along with up-gradation of the existing product. The results of this study emphasise the necessity for managers to foster a creative culture inside the company while also taking into account how market orientation and innovation affect the psychological performance of the company. The study makes a significant academic contribution for future researchers and management practitioners to ponder upon.