Effects of Market Orientation on SMES Sustainability in Upper West Region of Ghana

Abstract

This study investigates the effects of market orientation on the sustainability of Small and Medium Enterprises (SMEs) in the Upper West Region of Ghana. Market orientation, defined as a strategic approach focused on understanding and responding to customer needs, is identified as a critical determinant of SME success. The research explores how market-oriented strategies enhance SMEs' adaptability, innovation, and competitiveness while addressing challenges such as resource constraints, limited access to market data, and socio-economic barriers. The study employs a positivist research philosophy and adopts a quantitative research design. The data were collected through the self-administration method from 91 SMEs in the Upper West Region using structured questionnaires. A purposive sampling technique was used to select respondents, ensuring representation across various sectors. Statistical tools, including Structural Equation Modeling (SEM) and Smart PLS is used in the data analysis, which reported a significant and positive relationship between innovation, market orientation and business performance of SMEs. Reliability and validity tests were conducted to ensure the robustness of the findings. Key findings reveal that market orientation significantly improves SME sustainability by fostering customer satisfaction and business resilience. However, its adoption is hindered by environmental and socio-economic factors unique to the region. The study emphasizes the need for tailored strategies that align with local conditions to overcome these barriers. This research provides actionable insights for policymakers, SME owners, and stakeholders to support sustainable business practices in resource-constrained environments. By highlighting the importance of market orientation, it offers a framework for enhancing SME competitiveness and long-term growth in the Upper West Region of Ghana.