Effect of Market Orientation on Innovation Performance of Micro Enterprises: Research on Micro Enterprises in Eskişehir

Abstract

Most research on market orientation and its effect on innovation performance are related to large firms. This study aims to investigate the effect of market orientation on innovation performance of micro enterprises operating in Eskisehir. In addition to market orientation, this research also tries to explore whether business problems that micro enterprises encounter would have an impact on innovation performances of these enterprises. To test the proposed relationships, data gathered from 1769 micro enterprises operating in various areas was used, and the analysis revealed that market orientation and business problems micro enterprises encounter have significant impact on innovation performance. The research confirmed that market orientation behavior applies to micro enterprises, however, it also demonstrated that a new approach of market orientation is essential for micro enterprises due to changing business circumstances.