Market orientation and SME performance: Moderating role of IoT and mediating role of creativity

Abstract

SMEs, the most vital but vulnerable part of an economy, necessitate crucial resources and capabilities to succeed. Structuring on the resource-based theory (RBT) and market orientation (MO), as a fundamental capability for SMEs, this paper examines the moderating effects of the Internet of Things (IoT) and mediating effects of individual creativity on the MO and firm performance relationship. Using structural equation modeling (SEM), the analysis of data obtained from 229 SMEs indicates that IoT moderates the positive relationships between MO and firm performance, and MO and creativity but not between creativity and firm performance. In contrast, creativity partially mediates MO and firm performance linkage.