The impact of learning and marketing orientation on the performance of small and medium enterprises in Msukulagwa Municipality, Mpumalanga Province

Abstract

Small and medium enterprises (SMEs) are an important vehicle in income redistribution, poverty alleviation, employment creation and contribute to the gross domestic product of South Africa. However, SMEs in South Africa suffer from weak performance and thus a high failure rate. The main objective of this study was to investigate the impact of learning and marketing orientation on the performance of SMEs. A quantitative approach was used, while a self-administered questionnaire was also employed during the data collection process. A four section questionnaire covering demographic information, learning orientation variables, marketing orientation variables and performance variables was prepared and distributed randomly to a selected sample of 390 SME owners in Msukaligwa Local Municipality in Mpumalanga Province. A total of 181 questionnaires were returned. Descriptive statistics was undertaken to evaluate the respondents’ characteristics against the three research variables (learning orientation, marketing orientation and performance). The software used to analyse information gathered and to ensure accuracy and reliability of the study results was Statistical Package for Social Sciences (SPSS) version 23.0. Correlation and regression analyses were performed to determine the relationship between learning orientation and performance, and the relationship between marketing orientation and performance. The Cronbach’s alpha was used as a measure of reliability. The results of the study revealed that both learning and marketing orientation positively impact on the performance of SMEs. Recommendations to improve the marketing and learning orientation of SMEs are suggested.