Investigating the links between market orientation, marketing capabilities and performance in the context of retailing: a structural equation model approach

Arto Lindblom and Sami Kajalo

International Journal of Business Innovation and Research, 2017, vol. 12, issue 3, 337-352

Abstract: The present study investigates the links between market orientation (MO), store-level marketing capabilities and performance. In particular, we are interested in to analyse the relationship between MO and store-level marketing capabilities, and the impact of these store-level marketing capabilities on performance. The store-level marketing capabilities studied here are: 1) assortment management capability; 2) customer-service management capability. For the purpose of the study, we develop a conceptual model and related hypotheses. The hypotheses are tested using structural equation modelling (SEM) with a sample of 202 small Finnish retail entrepreneurs in the field of specialty goods retailing. Our findings offer the several substantive contributions. As a first contribution, the findings of the present study indicate that the relationship between retailer MO and store-level marketing capabilities is both positive and significant. As a second contribution, the study shows that both assortment management capability and customer-service management capability have a positive impact on customer performance. As a third contribution, the findings of our study indicate that store-level marketing capabilities do not have a direct impact on financial performance.

Keywords: market orientation; marketing capabilities; retailing; retail entrepreneurs; firm performance; structural equation modelling; SEM; entrepreneurship; assortment management; customer service management; conceptual modelling; financial performance. (search for similar items in EconPapers)
Date: 2017
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