The Structural Relationship among Business Environment, Market Orientation and Business Performance: Evidence from Tourism Industry in Dili, Timor-Leste
Keywords:
Industry environment, market orientation, business performance, tourism industry.
Abstract
The purpose of this research is to test the influence of the external environment on the business performance, and the mediating effect of market orientation on the relationship between the industry environment and business performance in the small and medium tourism industry. A total of 195 samples and questionnaires were used for data collection, while SMART-PLS 3.0 was used to test the hypothesis. The findings of this research show that the industry environment has a positive and significant influence on market orientation and business performance. Contrarily, market orientation has no significant influence on the business performance, as well as on the relationship between business environment and performance. This implies that the small and medium enterprises (SMEs) tourism industry enhanced their business performance by using properly its existing resources to cope with the dynamic changes of industry environment in Timor-Leste.
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References
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Ghasemi, R., Mohamad, N. A., Karami, M., Bajuri, N. H., & Asgharizade, E. (2016). The mediating effect of management accounting system on the relationship between competition and managerial performance. International Journal of Accounting and Information Management..
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Hair Jr, J., Sarstedt, M., & Hopkins, L. G. Kuppelwieser, V.(2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), pp. 106–121.
Hair Jr, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), p. 107.
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Hesford, J. W., Turner, M. J., Mangin, N., Thomas, C. R., & Hoffmann, K. (2019). Competitor Monitoring and Revenue Performance: Evidence from the Hospitality Industry. In Advances in Management Accounting. Emerald Publishing Limited, 31, pp. 1–22.
Ho, K. L. P., Nguyen, C. N., Adhikari, R., Miles, M. P., & Bonney, L. (2018). Exploring market orientation, innovation, and financial performance in agricultural value chains in emerging economies. Journal of Innovation & Knowledge, 3(3), pp. 154–163.
Huang, H.-I. and Lee, C.-F. (2012) ‘Strategic management for competitive advantage: a case study of higher technical and vocational education in Taiwan’, Journal of Higher Education Policy and Management, 34(6), pp. 611–628.
Huang, H. I. and Lee, C. F. (2012) ‘Strategic management for competitive advantage: A case study of higher technical and vocational education in Taiwan’, Journal of Higher Education Policy and Management, 34(6), pp. 611–628.
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Published
2022-12-19
How to Cite
Magalhaes, F., Saldanha, E. and Graciana, B. (2022) “The Structural Relationship among Business Environment, Market Orientation and Business Performance: Evidence from Tourism Industry in Dili, Timor-Leste”, Timor Leste Journal of Business and Management, 4, pp. 1-11. doi: 10.51703/bm.v4i0.97.
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Articles
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