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Wednesday, June 11, 2025

Market orientation adoption by Ghanaian SMEs

Market orientation has been extensively studied as a key determinant of firm performance, competitiveness, and sustainable growth. 

Despite this wealth of research, the practical application of market orientation principles among small and medium-sized enterprises (SMEs) in emerging economies such as Ghana remains limited and often misunderstood. 

This paper seeks to provide a comprehensive understanding of how Ghanaian SMEs can effectively adopt market orientation to enhance their competitiveness and contribute to national economic development.

Theoretical perspectives 

Market orientation is typically conceptualised as the organisation-wide generation, dissemination and responsiveness to market intelligence. It encompasses customer orientation, competitor orientation, and inter-functional coordination. 

Despite the clear theoretical consensus, SMEs in Ghana often struggle to implement these principles due to various challenges, including resource constraints, lack of formal training, and socio-cultural factors.

Challenges 

Ghanaian SMEs face unique obstacles that hinder the adoption of market orientation:

•    Resource limitations: Many SMEs operate with tight budgets, making it difficult to invest in formal market research, customer surveys, or competitive intelligence tools.

•    Managerial expertise: Owner-managers often lack formal marketing training and rely on intuition rather than data-driven decision-making.

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•    Cultural and institutional constraints: Family ownership structures and informal business practices can limit the adoption of collaborative, market-driven approaches.

•    Limited technological adoption: Digital tools that facilitate market intelligence and customer feedback are underutilised, particularly in rural areas.

Actionable points 

To address these challenges, this paper proposes five actionable strategies for Ghanaian SMEs to effectively implement market orientation principles:

1. Conduct regular customer feedback activities

SMEs should actively seek input from customers to understand their evolving needs and preferences. For example, a small agro-processing firm producing fruit juices could distribute feedback forms at local markets or supermarkets to gather insights on flavour preferences, packaging design, and pricing expectations. This direct feedback enables SMEs to tailor products to meet consumer demands effectively.

2. Monitor competitors and industry trends

SMEs should systematically observe competitor activities, industry trends, and changing customer expectations. A local bakery, for instance, could regularly review competitors’ pricing, product offerings, and social media engagement to identify opportunities for differentiation. This practice allows SMEs to anticipate market shifts and proactively respond to competitive threats.

3. Train staff in marketing skills

Investment in staff training is essential to build marketing capabilities. SMEs could partner universities, such as the University of Professional Studies, Accra, to offer short courses in market research, digital marketing, and customer relationship management. For example, a hospitality SME could send its staff to workshops on service excellence and brand management, improving customer loyalty and service quality.

4. Foster inter-functional collaboration

Market orientation requires effective communication and collaboration across departments. SMEs should establish regular meetings involving sales, production, finance and customer service teams. For example, a furniture manufacturer could hold monthly cross-departmental meetings to align product design with customer feedback and market trends. This integration helps align the entire organisation with market needs.

5. Adopt simple market intelligence tools

SMEs should leverage affordable digital tools to collect and analyse market data. Tools such as WhatsApp groups, Google Forms, and free survey software can facilitate real-time feedback from customers. For instance, a shea butter producer could use WhatsApp broadcasts to solicit customer reviews and preferences from both local and export markets, enabling quick adjustments to production and marketing strategies.

Several Ghanaian SMEs have demonstrated success by implementing market orientation principles. For example, SMEs in the shea butter industry have penetrated international markets by aligning their production with consumer preferences for organic and ethically sourced products. 

Through partnerships with fair-trade organisations and organic certification agencies, these SMEs have enhanced their market credibility and expanded their export opportunities. 

Similarly, some SMEs in the fashion and textile sector have leveraged social media platforms to engage directly with customers, showcasing new designs and gathering real-time feedback to inform their production decisions.

Policymakers and industry associations play a critical role in supporting SMEs’ market orientation efforts. Government agencies, such as the National Board for Small-Scale Industries (NBSSI), could develop programmes that provide training, funding and mentorship to SMEs seeking to become more market-oriented. 

Additionally, trade associations such as the Association of Ghana Industries (AGI) can facilitate knowledge-sharing and networking opportunities that help SMEs benchmark best practices in market orientation.

Conclusion

The adoption of market orientation among Ghanaian SMEs is not merely an academic exercise but a practical imperative for competitiveness and sustainable growth. 

By implementing actionable strategies such as customer feedback, competitor monitoring, staff training, inter-functional collaboration, and digital intelligence tools. 

SMEs can enhance their responsiveness to market needs and build resilience in an increasingly dynamic business environment. 

Integrating these practices will enable Ghanaian SMEs to move beyond intuition-based decision-making towards data-driven strategies that foster innovation, customer satisfaction, and long-term success.

The writer is the Head of Marketing Department, University of Professional Studies, Accra

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