Doctoral thesis
This study was set to assess the effects of the market orientation on the performance of small and medium tourism enterprises in Zanzibar. Specifically, the study examined the influence of the external environment on market orientation, the influence of the external environment on small and medium tourism enterprises performance. The study also analysed the influence of the market orientation on small and medium tourism enterprises performance and determined the confounding effect of the external environment on the relationship between market orientation and small and medium tourism enterprises performance. The Resources Based-Theory, Dynamic Capability Theory, Industrial Organisation Theory and Balance Scorecard Model were used to generate aconceptual framework that indicates the relationship between study variables. The study was conducted in the Urban West and South Region of Unguja, Zanzibar. It employed a cross-sectional survey coupled with convergence mixed-methods. Simple random sampling and purposive sampling were employed to get the respondents of the study. A structured questionnaire was used to collect quantitative data from 456 managers while a semi-structured interview was used to collect qualitative data from eight managers. A balance score card was used to measure performance. The data collected were validated and tested for its reliability through confirmatory factor analysis and analysed by using structural equation modelling. On the other hand, thematic analysis was used to analyse qualitative data. The findings show that market turbulence and competitive forces are significantly related to market orientation. Technological turbulence does not influence market orientation. Further, the external environment significantly influence customers’ performance measures, internal business process and financial measures but does not influence learning and growth measures. The study discovered that the external environment is the confounder of the relationship between market orientation and small and medium tourism enterprises performance when performance is measured by customers’ perspectives, internal business process and financial measures. The findings implied that small and medium tourism enterprises seeking to improve their performance need to be market-oriented and scan the environment to formulate a fit strategy that can boost their performance. The study recommends the government to build capacity of SMTEs’ managers to enhance market orientation capabilities and managers ought to invest in technology to improve organisational performance.