This study investigates drivers of market orientation in 253 fast growth SMEs through an examination of the causal interrelationships between transformational leadership, human resource practices, and organizational climate. The present findings reveal that human resource practices such as rewarding staff by utilizing bonuses for outstanding performance does not motivate staff to become market oriented. Instead, entrepreneurs should invest in motivating employees by providing recognition and acknowledgement of excellence, treating them as valuable resources and providing a supportive and friendly environment. Firms leverage advantages associated with transformational leadership capabilities to strengthen their human resource practices and creating a supportive organizational climate.
↧