Understanding the patterns of market orientation among small businesses

Purpose - To assess the patterns of market orientation within the small business sector. Design/methodology/approach - After a pilot study involving interviews with owner-managers, and covert and overt observation of small businesses' marketing practices, depth interviews by telephone and face-to-face were conducted in one state of the USA. Data, collected in the form of protocols and means-end maps for individual owner-managers, were analyzed by inductive reasoning. Findings - The study confirmed the appropriateness of the market orientation framework for the small business sector. Findings included a distinctive "marketing style" (strong emphasis on customer care and employee welfare; motivation; and market intelligence) related to size of the firms surveyed, the personality of the owner-manager, the available resources and the nature of the operating environment. Despite absence of a formal approach to market research and marketing planning, this "style" was found to have a positive effect on margins and market share. Research limitations/implications - Future studies could usefully investigate larger samples in broader geographic settings, including countries at all stages of economic development. It should also examine causal links among the "constructs" of market orientation. Practical implications - The findings provide small business owner-managers, policy makers and researchers with a framework for the measurement and evaluation of market orientation in small businesses, which could be adapted to specific conditions or used as a source of performance benchmarks. Originality/value - This paper offers useful and candid insights into the application of market orientation by small businesses, distilled from in-depth investigation of the motivations underlying respondents' marketing decisions and initiatives. It thus supplements the largely quantitative studies of market orientation in the literature to date.