The impact of proactive and responsive market orientation on the financial performance of SMEs

Abstract

In today’s era one of the significant predictor that enhances the performance of the company and make them market competitive is market orientation and in this work, it is measured with two new proxies (i) responsive (ii) proactive. The proactive and responsive orientation was the independent factors while the performance is dependent factor. The responses are collected from 72 respondents belonging to SMEs in Iraq. The collection tool was survey and the research design used was correlational. The research purpose used in this research is explanatory and the research approach used is quantitative. The research was conducted using the SmartPLS software, and the results showed that using these two approaches has a positive impact. Therefore, SMEs should focus on these proactive and responsive approaches to improve their financial performance.