Market Orientation and Leadership Styles of Managers in Malaysia

The objective of this study is to examine the relationship between leadership styles of managers in relation to market orientation. Personal characteristics of top managers—age, education, area of specialization, and executive experience—are control variables. This exploratory study focuses on small and medium scale manufacturing enterprises (SMEs) in Malaysia. Market orientation is defined as customer orientation, competitor orientation, and inter-functional coordination (Narver & Slater, 1990). A total of 78 managers participated in this study from various manufacturing industries: engineering, electrical and electronics, packaging and paper, metals, chemicals, and food and herbal industries. These managers are managing directors, chief executive officers (CEOs), owner-managers, or executive directors of their organizations. The methodology employed included descriptive, correlation, factor, and regression analyses. Findings showed supportive-oriented leadership styles of top managers have a significant relationship with market orientation. Theoretically, this study contributes to the literature in market orientation in relation to SMEs in Malaysia. For managers, it gives better understanding and insight into how their behaviors and leadership styles will influence the development of market orientation in their organizations. Limitations included the methodology used and the sample size. Recommendations for future studies suggest extending to investigate other leadership theories and variables such as actions and attitudes of managers, as well as future longitudinal studies.