Customer orientation and SME performance: the role of networking ties

Abstract

The purpose of this paper is to examine the moderating effect of networking ties on the relationship between customer orientation and firm performance. This study adopted a survey approach to collect data from 251 respondents in the Mangaung Metropolitan Municipality in the Free State province, South Africa. Scales for data collection were operationalised from prior studies. A hierarchical regression analysis was used to examine the moderating effect of networking ties on the relationship between customer orientation and firm performance. The results showed that customer orientation had a significant positive association with firm performance, thus supporting the existing calls for examining the unique contributions of customer orientation to firm performance. Furthermore, this study hypothesised that business, political, and social network ties positively moderated this association. However, the results showed that only business and social network ties had a positive...