Impact of Competitiveness in Market Orientation on Business Performance in Vietnamese Cashew Enterprises

Abstract

Background: In an increasingly competitive global landscape, businesses are prioritising market-oriented competitiveness as a strategic foundation to enhance performance. However, the specific mechanisms through which market orientation translates into tangible business results require further empirical clarification, particularly within emerging markets.

Objective: This study evaluates the impact of market orientation competitiveness on business performance by examining the mediating roles of market forecasting ability, adaptability to change, market creation ability, and competitive advantage.

Methodology: The research utilised survey data from 503 respondents representing 260 cashew enterprises in Vietnam. The reliability of the measurement scales was assessed using Cronbach's Alpha and Exploratory Factor Analysis (EFA) via SPSS. The structural model and hypotheses were tested using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS software.

Results: The findings demonstrate a significant positive impact—both direct and indirect—of market orientation competitiveness on business performance. The intermediary variables, particularly competitive advantage and market adaptability, serve as critical pathways for enhancing organisational outcomes.

Unique Contribution: This study provides a robust empirical foundation for Vietnamese cashew enterprises to consolidate their market orientation. It offers policymakers deeper insights into the industry's strategic needs, facilitating the development of targeted support frameworks and development directions for the sector.

Conclusion: Market Orientation Competitiveness is a primary driver of Business Performance in the cashew industry, enabling firms to navigate market volatility and sustain growth.

Key Recommendation: Enterprises should prioritise investments in market intelligence and adaptive capabilities to bolster their market orientation competitiveness, thereby achieving superior and sustainable business performance.