Relationships between Market and Entrepreneurial Orientation and Organizational Performance: Empirical Evidence from Small and Medium Scale Garment Manufacturers in Sri Lanka

The literature indicates that small and medium scale firms are quite different with respect to their utilization of business practices. Thus, the study endeavours to address the relationships between the market and entrepreneurial orientation, and organizational performance. The study derived two hypotheses in relation to the relationship between market orientation and entrepreneurial orientation, and organisational performance in the attempt to examine how both the orientations contribute to the organizational performance of small and medium entrepreneurs in garment industry at Southern province, Sri Lanka. The sample of the study consisted of 175 respondents representing small and medium scale entrepreneurs in the Southern Province Sri Lanka. A structured questionnairewas administered to the sample respondents to collect data. The data were analyzed with Partial Least Squares path modeling (PLS) to test the hypotheses of the study. The results indicated that the hypotheses were statistically significant and all effects were in the expected direction.