Marketing information system, business strategic orientation, and business performance among Yemeni food and beverage small enterprises

Small enterprises (SEs) in the food and beverage sector play a crucial role in the economies of developed and developing countries by generating significant employment and income. However, in Yemen-a developing nation-many SEs within this sector face high failure rates due to their weak competitiveness. According to statistical reports from the Ministry of Industry and Trade, the growth rates of the added value of SEs in the food and beverage sector were inconsistent between 2020 and 2022, showing fluctuations of -28%, 3%, and 2%, respectively. Despite a slight improvement in 2021 and 2022, these rates remain low and insufficient. Additionally, studies have observed a decline in the average growth rate of these SEs to 3.39%, leading to an average decrease of 17.2% in the nation’s GDP. The inconsistent findings on the relationship between entrepreneurial orientation (EO), market orientation (MO), and business performance (BP) highlight the need for further investigation to resolve these contradictions and enhance theoretical understanding in diverse contexts. Research suggests that transforming organizational intangible resources, such as MO and EO, into superior performance necessitates a reliable information system to improve decision-making. In this context, the current study explores the mediating role of marketing information systems (MrkIS) in the relationship between EO, MO, and BP in Yemen's food and beverage SEs. A simple random sampling technique was used to select 626 SEs for the study, and data were collected through questionnaires distributed to managers and owners, yielding 321 valid responses. SPSS was employed for data screening and preliminary analysis, while SmartPLS 4 software was used for structural equation modelling (SEM). The findings revealed that both EO and MO positively and significantly impact BP. However, the dimensions of MO and EO vary in their influence on BP, with customer orientation and risk-taking showing insignificant effects. Therefore, SE managers in Yemen should foster a culture that actively promotes innovation, anticipates market trends, and effectively manages risks. Additionally, a deep understanding of competitors' strategies and promoting solid internal communication and collaboration are essential for enhancing market positioning and operational efficiency. Moreover, the study identified a significant relationship between MrkIS and BP, suggesting that integrating MrkIS in firms with 4–9 employees in Yemen's food and beverage sector offers substantial opportunities for improving business performance and sustainability. The research also found that MrkIS partially mediates the relationship between EO, MO, and BP, indicating that SEs adopting EO and MO leverage MrkIS to achieve superior performance. However, the study's focus on the food and beverage sector limits its generalizability, and the exclusion of objective performance measures, longitudinal methods, and mixed methods presents additional limitations. Future research should address these gaps, exploring the indirect effects of EO and MO dimensions on BP through MrkIS.

Text 125384 - Full Text.pdf Download (8MB) Text SPE 2024 2 - Declaration Form.pdf Restricted to Repository staff only Download (441kB) Text SPE 2024 2 - Full Text.pdf Restricted to Repository staff only Download (8MB) Official URL or Download Paper: http://ethesis.upm.edu.my/id/eprint/18866

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