EXPLORING MARKET ORIENTATION OF GHANAIAN SMES' INTERNATIONALIZATION PROCESS OF THE AGRO-PROCESSING SECTOR

Abstract

Purpose: In Ghana, the Agric sector is one of the dominant sectors with numerous SMEs operating within the industry. The sector makes up around 80% of total employment in Ghana and contributes about 60% of the country's GDP. Due to the quest to survive in a competitive global business market, SMEs in the agricultural sector have internationalized and market orientation is critical to their internalization success.   Hence, this study addresses the gap in the literature on agricultural SMEs by examining the influence and effect of market orientation on the internationalization processes of SMEs in Ghana's agricultural sector.

Design/methodology/approach: This study employed a survey research design. A questionnaire was electronically distributed to a targeted sample of 370 Agricultural SMEs exporting goods from agro-based activities. The respondents were primarily businesses affiliated with the National Board for Small-Scale Industries (NBSSI), the Ghana Export Promotion Agency (GEPA), and the Ghana Chamber of Commerce. Three hundred forty-one valid responses were collected and used for descriptive and inferential analysis, ensuring a robust and representative dataset for the study.

Findings: The study's results are of significant importance, revealing a strong positive effect of market orientation on SMEs' internationalization processes and international performance. In fact, market orientation was found to account for approximately 69% of SMEs’ international performance changes. Notably, among the market orientation variables, competition, customer focus, and cost management were found to positively influence internationalization performance, underscoring their crucial role in the internationalization process of SMEs in the agricultural sector.

Originality: This research is truly unique in its focus on the influence of MO in low-middle-income economic countries’ agriculture business exports. By seeking to ascertain its effect on internationalization processes, the study offers a fresh perspective and valuable insights into a previously unexplored area of research, thereby engaging the audience in a novel and intriguing discussion.