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Relationship between Market Orientation, Entrepreneurial Orientation, and Firm Performance in Thai SMEs: The Mediating Role of Marketing Capabilities

Author

Listed:
  • Laddawan Lekmat

    (School of Business, University of the Thai Chamber of Commerce, Thailand)

  • Christopher Selvarajah

    (Swinburne Business School, Faculty of Business and Law, Mail H23, Swinburne University, Australia)

  • Chandana Hewege

    (Swinburne Business School, Faculty of Business and Law, Mail H23, Swinburne University, Australia)

Abstract

This research investigates the firm performance predictors of Thai SMEs, examining the relationships among market orientation (MO), entrepreneurial orientation (EO), and firm performance (FP) through a sample of 405 SMEs operating in the service and retail industries. Specifically, we test the mediation effects on the relationships between MO, EO, and FP by marketing capabilities. Results indicate that MO has both direct and indirect impacts on FP, whereas EO has only a significant indirect impact on FP through the mediation of marketing capabilities. EO can predict MO, while marketing capabilities can predict marketing performance through financial outcomes. This study does provide evidence for best practice for SMEs in that MO and EO as constructs may not contribute to superior performance, organizations may require organizational capability resources, such as marketing capabilities, to attain superior business results.

Suggested Citation

  • Laddawan Lekmat & Christopher Selvarajah & Chandana Hewege, 2018. "Relationship between Market Orientation, Entrepreneurial Orientation, and Firm Performance in Thai SMEs: The Mediating Role of Marketing Capabilities," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 17(3), pages 213-237, December.
    • Handle: RePEc:ijb:journl:v:17:y:2018:i:3:p:213-237
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    Citations

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    Cited by:

    1. Antonia Mohedano-Suanes & María-Ángeles Revilla-Camacho & Dolores Garzón, 2021. "Innovation orientation and long-term performance: The mediating role of market perception capability," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 741-757, June.
    2. 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.
    3. Rakesh Gupta, 2019. "Entrepreneurship Orientation (EO), Resources, and Small Firm Growth: Evidence from India," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 18(1), pages 41-58, June.
    4. Brandon William Soltwisch, 2021. "When the Quest for the Best Pays Off: How Maximising Entrepreneurs Improve Performance by Creating Entrepreneurial and Market Oriented Businesses," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 30(2), pages 223-248, September.
    5. Tian Hongyun & William Adomako Kankam & Florence Appiah-Twum & Isaac Gumah Akolgo, 2019. "Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability," International Review of Management and Marketing, Econjournals, vol. 9(4), pages 63-73.

    More about this item

    Keywords

    market orientation; entrepreneurial orientation; marketing capabilities; firm performance; SMEs; Thailand;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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