Market orientation on trust and performance in London's ethnic minority micro businesses

Ekwulugo, Frances Ngozi

Abstract

The main objective of this study was to investigate and produce results of value in determining the merits of market orientation, trust and performance within the London African and Asian ethnic minority micro businesses (EMMBs). Searches of the literature established that previous studies concentrated on trust and market orientation, or market orientation and performance. Market orientation, trust and performance were selected as variables based on the literature review and in-depth interviews. The aim was to examine the extent to which market orientation influences trust, then performance of the EMMBs in London.

Exploratory in-depth interviews were conducted then surveys designed and pilot tested, before circulating to participating ethnic minority micro businesses. The statistical methods included the use of inferential statistics such as frequencies, means, correlations, regression analysis, and Kaiser-Meyer-Olkin and Bartlett's sample adequacy tests. Factor analysis was performed to generate new classifications. Six hypotheses were tested.

From the findings, the EMMBs mainly carry ethnic products and serve ethnic markets. The results established that ethnic minorities discriminated amongst themselves, paid little attention to their competitors, had an a-la-carte attitude to marketing, more often than not employed members of their ethnic group, and tried to create jobs for their families. The EMMBs were found to relate better with their customers and employees than with banks and suppliers. Furthermore, EMMBs did not use mainstream business support agencies, but used their own community support groups. They had a distrust of the authorities, few adopted new technology, and performance was better when using non-financial measures than when financial measures were used. In terms of the relationship between market orientation, trust and performance, there was a stronger relationship between trust and performance than between market orientation and performance. Trust was found to mediate performance.

This study has generated a better understanding of the organization and cultures present in these EMMBs, which are unique in their own ways and contribute actively and significantly to the market and economic activities of the London boroughs where they are located. If taken into consideration, the important factors isolated by this research could result in positive improvements for those planning to undertake more effective ethnic minority business, and advance knowledge in the area of ethnic entrepreneurial trading.

Citation

Ekwulugo, F. N. (2009). Market orientation on trust and performance in London's ethnic minority micro businesses. (Thesis). University of Hull. Retrieved from https://hull-repository.worktribe.com/output/4213184

• Thesis Type: Thesis
• Deposit Date: Oct 9, 2012
• Publicly Available Date: Feb 22, 2023
• Keywords: Business
• Public URL: https://hull-repository.worktribe.com/output/4213184
• Additional Information: Business School, The University of Hull
• Award Date: Nov 1, 2009