Strategic Management and Market Orientation as Influencer of Business Performance among Small and Medium Enterprises

This research examined how small and medium-sized enterprises (SMEs) in Santo Tomas, Davao del Norte, were affected by strategic management and market orientation on the company performance. A total of 132 SMEs were randomly selected from a stratified database, and the data were analyzed using a quantitative descriptive-correlational approach. The data was mostly collected through a customized survey questionnaire, and hypotheses were tested through multiple regression analysis with a p-value threshold of 0.05. Findings revealed significant relationships between Strategic Management (p = 0.003) and Market Orientation (p = 0.023) with business performance. However, only Strategic Management significantly influenced business performance (p = 0.040), while Market Orientation (p = 0.379) did not demonstrate a statistically significant impact. To improve business performance, SME owners and managers are encouraged to enhance strategic management processes, particularly leadership development. Training programs that build strategic leadership and management skills are essential. Additionally, strengthening market orientation efforts through customer focus, inter-functional coordination, and regular market research is vital to stay aligned with customer preferences and competitive trends. Future research may identify specific elements of market orientation that significantly impact business performance, enabling SMEs to target their efforts effectively. Expanding studies to diverse contexts can provide broader insights into how market orientation influences performance in varying environments.