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

Authors: Arto Lindblom; Sami Kajalo

Addresses: School of Business, Aalto University, P.O. Box 21210, FI-00076 AALTO, Finland ' School of Business, Aalto University, P.O. Box 21210, FI-00076 AALTO, Finland

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.

DOI: 10.1504/IJBIR.2017.082089

International Journal of Business Innovation and Research, 2017 Vol.12 No.3, pp.337 - 352

Received: 20 Dec 2014
Accepted: 11 Jan 2015

Published online: 07 Feb 2017 *

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