EXTENDED ABSTRACT (500-1000 words except the references)
Sections of the Extended Abstract:
TITLE * (three-fifteen words)
NAME(S) OF THE AUTHOR(S) *
KEYWORDS * (three- eight key terms)
INTRODUCTION * (150-250 words): research question, aim, scope, and originality
LITERATURE REVIEW * (250-500 words): theoretical background and discussions, fundamental
concepts, findings of the recent studies, hypothesis and/or model development-if any, etc.)
METHODS * (100-200 words): data collection and analysis methods utilized in this study
FINDINGS & CONCLUSION (100-250 words)
REFERENCES * (15-30 references)
APPENDICES
* obligatory sections
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A SAMPLE FOR THE OBLIGATORY SECTIONS OF AN
EXTENDED ABSTRACT
MARKET ORIENTATION AND PLANNING FLEXIBILITY
IN SMES : PERFORMANCE IMPLICATIONS AND AN
EMPIRICAL INVESTIGATION
NAME(S) OF THE AUTHOR(S)
Xxxxxxxxxxxxxxx
KEYWORDS
market dynamism; market orientation; planning flexibility; small and medium-sized enterprises
INTRODUCTION
The purpose of the present study is to investigate the intertwined roles of ‘market orientation’ – an
endogenous, cultural factor – and ‘strategic planning flexibility’ – an internal, process factor – in achieving
superior organizational performances. To this end, we develop a contingency model that posits both of these
constructs as direct antecedents of SME performance, thus complementing the effects of one another as they
jointly improve the organization’s ability to adapt to the changes in the environment and deliver superior
customer value. In addition, based on the findings in prior research that market orientation and planning
flexibility work best under highly dynamic marketplace conditions, our model incorporates market dynamism
(an uncontrollable, external factor) as a moderator that increases the effects size of each on SME
performance.
The article proceeds in the following manner. First, we briefly review the literature regarding market
orientation and planning flexibility. We develop hypotheses concerning the effects of market orientation and
planning flexibility on SME performance. Second, we incorporate market dynamism into our theoretical
analyses and discuss its moderating role in the performance impacts of market orientation and planning
flexibility. Next, we test our hypotheses using data from 312 manufacturing SMEs in Turkey. We explain in
detail the data collection method and analytical procedures. Finally, we provide the research findings and
discuss their managerial and theoretical implications.
LITERATURE REVIEW
Factors contributing to the competitive performance of small and-medium-sized firms (hereafter SMEs) have
long been attracting the attention of researchers and business owners/managers. Research in the strategic
management literature provides a long list of strategic, structural, managerial, cultural and procedural aspects
as antecedents of high performance in SMEs (e.g. Churchill and Lewis, 1983; Covin and Covin, 1990;
Deshpande and Parasuvaran, 1986; Shuman et al, 1985). The main postulate of this research stream is that
superior performance in the competitive arena requires an effective combination of all relevant internal
organizational elements, i.e. strategy, culture, climate, processes and procedures enabling greater adaptability
to the rapidly changing customer preferences and dynamic marketplace factors (Baker et al., 1999; Naman
and Slevin, 1993). Accordingly, a market-oriented organizational culture and flexible strategic planning
approach have been suggested as key performance leverages for business firms (e.g. Barringer and Bluedorn,
1999; Slater and Narver, 1998).
Market orientation is a specific form of organizational culture that focuses on ‘delivering products and
services valued by customers, usually accomplished through ongoing monitoring of market conditions, and
adaptation of organizational responses’ (Grewal and Tansuhaj, 2001: 67). Pelham and Wilson (1996) assert
that a market oriented culture is the main source of competitive advantage for today’s business firms,
facilitating customer-driven value creation. A market oriented organizational culture may work as a critical
driver of various aspects of superior performance including product quality, new product success, and
profitability not only for large-scale firms (e.g. Deshpande et al., 1993; Hult and Ketchen, 2001; Jaworski
and Kohli, 1993; Kohli and Jaworski, 1990; Morgan and Strong, 1998; Narver and Slater, 1990; Noble et al.,
2002; Slater and Narver, 1994) but also for SMEs (e.g. Appiah-Adu and Singh, 1998; Pelham, 1999, 2000;
Pelham and Wilson, 1996).
H1: The level of market orientation in SMEs will be positively related to their overall performance.
Organizational strategy needs to be aligned with organizational culture and environmental challenges.
Therefore, planning provides a detailed flow of activities that help in shaping the minds of organizational
members and organizing the procedures employed by the various departments. However, any lack of
flexibility potentially limits firms’ capabilities to respond to radical change (e.g. Richbell et al., 2006; Spicer
and Sadler-Smith, 2006). Therefore, if not accompanied with an organizational ability to better anticipate and
react to the changing environmental conditions (Risseuw and Masurel, 1994), a rigid commitment of the
firm’s resources to a specific strategic direction (i.e. a rigid plan) may limit the capability of generating
contingent repositionings (Slotegraff and Dickson, 2004).
H2: The level of planning flexibility in SMEs will be positively related to their overall performance.
METHODS
Data were collected through face-to-face interviews with top executives of the SMEs in the Turkish
manufacturing industry. The sampling frame consists of randomly selected 1000 manufacturing SMEs
employing less than 250 employees. As a result, the effective sample size of the study is 312.
The constructs in our study are developed by using measurement scales adopted from prior studies. All
constructs are measured using seven-point Likert scales with anchors strongly disagree (= 1) and strongly
agree (= 7). Items for measuring Market Orientation are adopted from Narver and Slater (1990). This scale
consists of items measuring the Customer Orientation (6 items), Competitor(s) Orientation (4 items), and
Interfunctional Coordination (5 items) components of market orientation. The Planning Flexibility scale (9
items) is adopted from Barringer and Bluedorn (1999). Similarly, selected items from Appiah-Adu and Singh
(1998) and Pelham and Wilson (1996) are used for measuring Market Dynamism (6 items). Items in this
scale assess the rate of change in customer needs, competitors’ strategies, products, and technology. Finally,
seven items are adopted from Homburg et al. (1999) to measure different aspects of SME Performance, such
as profitability, market share, customer satisfaction, and adaptability.
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