Impact of Government Policies in the Influence of Market Practices on Financial Performance of Small and Medium Enterprises (SMEs) in Iraq

Abstract

Previous studies that examined the effect of market practices on the performance mainly concentrated on large companies. The review of the small and medium enterprises (SMEs) literature reveals limited research has attempted to investigate the moderating effect of government policy in SMEs, particularly in the Iraq context. This study general review the moderating effect of government policy on the relationship between market practices related to the provision of high quality products and market activities such as personal selling, sales promotion, advertising, pricing-related issues, and distribution coverage and financial performance of SMEs in the Iraq. Findings of the study indicate the performance of SME vary with the choice of the market practices they adopted. Additionally, to a certain degree, the discussions of the study suggest government policy as measured by market complexity of process moderates the relationship between market practices related to the provision of high quality products and market activities such as personal selling, sales promotion, advertising, pricing-related issues, and distribution coverage and the financial performance of SMEs