The study examines the joint effects of market orientation (an internal, cultural factor) and planning flexibility (an internal, process factor) on business performance in small and medium-sized firms. In addition, the conceptual model incorporates market dynamism (an external factor) as a moderator on business performance. A number of hypothesized relationships are tested with a sample of small and medium-sized manufacturing firms in Turkey.The results suggest that while, in general, both market orientation and planning flexibility positively influence firm performance, contrary to the author's hypothesis, planning flexibility exerts a negative effect on performance in highly dynamic markets.Theoretical and managerial implications of these and other findings are discussed.
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