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Firm Performance among Internationalized SMEs: The Interplay of Market Orientation, Marketing Capability and Digitalization

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  • Sanna Joensuu-Salo

    (School of Business and Culture, Seinäjoki University of Applied Sciences, 60320 Seinäjoki, Finland)

  • Kirsti Sorama

    (School of Business and Culture, Seinäjoki University of Applied Sciences, 60320 Seinäjoki, Finland)

  • Anmari Viljamaa

    (School of Business and Culture, Seinäjoki University of Applied Sciences, 60320 Seinäjoki, Finland)

  • Elina Varamäki

    (School of Business and Culture, Seinäjoki University of Applied Sciences, 60320 Seinäjoki, Finland)

Abstract

The ability to internationalize has become a competitive necessity for many firms, and one important for survival and growth in the era of globalization. At the same time, digitalization is transforming the locus of entrepreneurial opportunities and entrepreneurial practices, thus offering new perspectives on internationalization. Internationalization requires marketing capability as well as market orientation. However, there is a gap in the literature exploring the interplay of digitalization, market orientation and marketing capability in the internationalization process. The objective of the present study is to improve our understanding of (1) the impact of market orientation, marketing capability and digitalization on firm performance among small- and medium-sized enterprises (SMEs) and (2) the differences in this impact between internationalized SMEs and SMEs operating only in domestic markets. The data were gathered from 101 Finnish SMEs in the wood-product industry, and analyzed with AMOS using path analysis. The results show that marketing capability mediates the effect of market orientation on firm performance. For internationalized firms, market orientation and marketing capability are crucial to their success in foreign markets. However, digitalization has no effect on firm performance with internationalized firms. With other firms, the effect is direct and significant.

Suggested Citation

  • Sanna Joensuu-Salo & Kirsti Sorama & Anmari Viljamaa & Elina Varamäki, 2018. "Firm Performance among Internationalized SMEs: The Interplay of Market Orientation, Marketing Capability and Digitalization," Administrative Sciences, MDPI, vol. 8(3), pages 1-13, July.
    • Handle: RePEc:gam:jadmsc:v:8:y:2018:i:3:p:31-:d:156406
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    References listed on IDEAS

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    15. Caroline Reimann & Fernando Carvalho & Marcelo Duarte, 2021. "The Influence of Dynamic and Adaptive Marketing Capabilities on the Performance of Portuguese SMEs in the B2B International Market," Sustainability, MDPI, vol. 13(2), pages 1-23, January.
    16. Hien Thi Ngoc Huynh & Phuong V. Nguyen & Khoa T. Tran, 2018. "Internationalization and Performance of Vietnamese Manufacturing Firms: Does Organizational Slack Matter?," Administrative Sciences, MDPI, vol. 8(4), pages 1-15, October.
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