Purpose: Marketing and performance in small and medium-sized enterprises (SMEs), particularly in local markets and under increasingly competitive conditions, have long been central concerns in business management research. Resource constraints and competitive pressures compel these firms to adopt effective strategic marketing approaches. Within this context, market orientation and integrated marketing communications are recognized as key capabilities that play a crucial role in enhancing market performance and improving customer-related outcomes. Accordingly, the present study aims to examine the effect of market orientation on market performance and customer-related performance, emphasizing the mediating role of integrated marketing communications in SMEs operating in Wasit city.
Method: This study is applied in terms of research objective and adopts a descriptive–survey research design using a standardized questionnaire. The statistical population consists of managers and employees of small and medium-sized enterprises (SMEs) located in Wasit city in 1404 (2025). A simple random sampling method was employed (cluster-based, focusing on managers of SMEs). The reliability of the questionnaire was confirmed with a Cronbach’s alpha coefficient of 0.915, and its content validity was established through expert and academic review. In total, 299 responses were collected via an online survey and subsequently analyzed using confirmatory factor analysis and structural equation modeling. Data analysis was conducted using SPSS version 24 and PLS version 3 software.
Findings: The findings of this study demonstrated that market orientation plays a significant role in improving both market performance and customer-related performance of small and medium-sized enterprises (SMEs) in Kerman, while integrated marketing communications (IMC) acts as an important explanatory and mediating mechanism in these relationships. The results confirmed that market orientation has a positive and significant effect on IMC, indicating that firms with stronger attention to customer needs, competitor actions, and market intelligence are more capable of designing coherent and coordinated marketing messages across communication channels. The study also showed that market orientation directly enhances customer-related performance by improving customer understanding, satisfaction, loyalty, and responsiveness to changing preferences. In addition, market orientation was found to have a significant positive effect on market performance, suggesting its contribution to greater market adaptability, sales growth, competitive positioning, and market share development. The empirical findings further revealed that IMC has a direct and significant influence on both customer-related performance and market performance. This means that consistency in communication content, alignment of online and offline channels, and a unified brand voice can strengthen customer experience, deepen customer relationships, and improve market outcomes. More importantly, the mediating tests confirmed that IMC significantly transfers and strengthens the effects of market orientation on the two performance dimensions. In other words, market orientation alone is not sufficient unless market-based insights are effectively translated into coordinated communication programs. Therefore, SMEs in Kerman can achieve better performance when market knowledge is operationalized through integrated communication strategies. These findings provide localized empirical evidence for the SME context and support the view that performance improvement depends not only on gathering market intelligence but also on converting it into strategically aligned communication actions.
Conclusion: This study concludes that market orientation and integrated marketing communications should not be treated as separate managerial practices, but rather as complementary strategic capabilities that jointly enhance firm performance in SMEs. In the economic ecosystem of Kerman, where firms often face resource constraints, intense competition, and fragmented marketing activities, the integration of these two capabilities becomes even more critical. The results suggest that managers should establish continuous market intelligence systems, develop centralized customer databases, monitor customer feedback regularly, and align communication campaigns with actual market needs and competitive advantages. They should also ensure consistency of promotional messages, brand identity, and customer experience across all touchpoints. Furthermore, the findings highlight that the mere collection of market information is not sufficient for achieving superior performance. SMEs need to transform market insights into clear, coordinated, and customer-oriented communication strategies. This requires close cooperation between marketing, sales, customer service, and market research units. By doing so, firms can respond more effectively to environmental changes, improve customer trust, strengthen brand recognition, and enhance their competitive position. Therefore, integrated marketing communications can be considered a practical mechanism through which market orientation is converted into tangible performance outcomes. In addition, the results emphasize the importance of managerial commitment in institutionalizing market-oriented behaviors and integrated communication processes within SMEs. Since many small and medium-sized enterprises operate with limited financial, human, and technological resources, managers should prioritize cost-effective communication channels, particularly digital platforms, to deliver consistent messages and maintain continuous interaction with customers. Training employees to understand customer needs, share market information internally, and coordinate communication activities can also improve the effectiveness of marketing strategies. In this regard, the alignment between strategic planning and operational marketing activities becomes essential for sustaining customer satisfaction and market growth. Overall, the study contributes to the literature by presenting a comprehensive model that explains how market orientation leads to superior performance through IMC. From a practical perspective, it offers actionable guidance for SME managers to improve competitiveness, strengthen customer relationships, and enhance market outcomes through coordinated, data-informed, and market-driven communication strategies. This evidence also provides valuable implications for policymakers and business support institutions in Kerman, suggesting that strengthening marketing capabilities among SMEs can contribute to regional economic development and long-term business sustainability.