International Journal of Business and Economics Volume 17, No. 3 December, 2018

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

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.

Keywords：market orientation, entrepreneurial orientation, marketing capabilities, firm performance, SMEs, Thailand.

JEL Classifications：L25, L26, M31.

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