Exploring the role of customer orientation - a look at successful SMEs in the South African mining industry

Abstract

Small to medium enterprises (SMEs) are an integral part of developing economies as they play a significant role in driving economic growth. South African SMEs are facing numerous challenges that are making it difficult for them to realize long-term success. The contributions to this are both at a macroeconomic level as well as an entrepreneurial skill level. This study focused on the latter with the aim of contributing to studies that investigate how SMEs can improve their chances of long-term success. An important enabler of long-term success is the ability to attain and maintain a competitive advantage as an SME. Customer-orientation strategies are regarded as fundamental in this regard. This study focused on successful South African SMEs operating in the mining industry and explored whether customer orientation plays a role in their success. These SMEs were defined as successful in that they have managed to operate for a fairly long time, considering the failure points of South African SMEs. The study found that these SMEs implement customer-orientation strategies in how they operate their businesses and that these strategies contribute to their success. It was also found that customer orientation assists in the attainment of a competitive advantage, along with other strategies. This study contributes academically in that it conducted research in an area that is understudied within the South African SME and mining industry context. It also contributes to businesses by providing guidance for other SMEs in this sector on strategies that can be employed to improve their chances of long-term success.