The Impact Of Proactive Market Strategy On Firm Performance In Russian Sme's

Small and medium-sized enterprises(SME's)play a significant role in the process of forming a stable market structure and developing the economic sector.Today,the Russian economy is experiencing several problems that have arisen out of a series of political and economic events in the world.In the context of the present state of the national economy,great importance is attached to the development of small and medium-sized businesses.However,the ongoing changes open up new opportunities for building business success.Enterprises need to adapt their business strategies to new economic conditions.For this,it is necessary to determine the most promising areas.Therefore,in the context of a proactive market strategy,we are considering how firm capabilities mediate the effect of strategy on Russian SME's performance;it has become an important task for this research.The research used data of 140 SMEs' across manufacturing industries in Russia with the aid of a questionnaire survey tool for collecting data from managers as targeted respondents after preliminary pre-testing the questionnaire tool which showed consistency.This work based on the analysis proposes 10 research hypotheses.The description of the research and its characteristics were obtained through the usage of percentage and frequency statistic methods.Both the refinement of the instrument for constructing consistency and factor validation was achieved by the application of exploratory factor analysis,confirmatory factor analysis,as well as through the correlation analysis and regression analysis.The hypothesis of this paper was verified.Correlation analysis and regression analysis are used to verify the hypothesis,that is,to test the direct effect of the proactive market strategy on performance SMEs,the intermediary role of technological capability,marketing capability,human resource management capability,and network capability on the firm performance.Nine hypotheses were confirmed and accepted whiles one was denied and rejected.This research takes proactive market strategic orientation as the starting point of research and deeply explores the impact of a firm's capabilities on its performance.Because Russian SMEs have been constrained by the shortage of resources under consideration for a long time,this work explores the relationship between technological,marketing,human resource management,and network capabilities and the performance of them.The study found that the proactive market strategy can identify and satisfy hidden,unspoken customer needs which are subtle and hard to understand,and hence,cannot be readily imitated by competitors,which leads to high firm performance.Furthermore,the proactive market strategy is positively related to technological capability,marketing capability,human resources management capability,and network capability,it can help increase new product performance because this strategy and capability help a firm adapt to the evolving requirements of customers and markets,which is needed to develop and introduce new products successfully.Therefore,capability orientation has important strategic significance for improving the high SME's performance.The findings provide evidence that technological and marketing capabilities play an intermediary role between market strategy and SME's performance,and there is no intermediary connection between human resources management and network capabilities and SME's performance.Finally,based on relevant research results and business management practices,this paper provides corresponding management suggestions for how to maintain a high firm performance of SMEs.First of all,to maintain and improve high Russian SME's performance,which adheres to the proactive market strategy,it is necessary to build intimate relationships with customers,to gain insight into their needs and wants,and also to pursue a policy to identify their latent needs.It would further lead to acquiring advanced technical knowledge that enables the firm to create novel and well-fitting solutions to those needs.The basic tenet of the current study is that without the presence of firm capabilities,the satisfactory fulfillment of corporate goals would be difficult.Therefore,it is necessary to maintain a high focus on market ing capability and technological capability,because proactive market strategy and marketing capability are likely to accumulate marketing knowledge stores through the quick acquisition of new customer's knowledge,which facilitates firms' marketing capabilities to refine future needs,and marketing firms through technological capability are proactive in acquiring new technologies and use these technologies in developing new products to meet customers' changing wants.In order to increase firm performance in the future,it is necessary to pay attention to the development of the network and human resource management capability.Namely,to increase employee satisfaction,Russian firms have to formulate various employee retention strategies,including pay raises,bonuses,gain sharing,and paid time off because a higher level of employee satisfaction,a higher level of firm performance is.It is necessary to develop,through network capability context,informal relations between employees,flexible relationships with partners,and to analyze partner's markets that can help to develop and utilize inter-organizational relationships and to get access to various resources held by others.