Market orientation, technological capability, and firm performance: an empirical study with PLS-SEM approach

Market orientation (MO) and technological capability (TC) have been regarded as critical determinants of Firm performance (FP). However, scant studies explain how technological capability and market orientation are linked in explaining firm performance. Using a Resource-based view and Dynamic capability as theoretical underpinnings, the present study seeks to examine this gap in the knowledge structure by adopting the Partial Least Squares SEM methodology. The findings indicate the necessity of alignment between a firm's technological resources and marketing orientation for generating new insights, better communication, and coordination to respond to changing marketing needs. The empirical data was gathered from the founders, co-founders, managing directors, managers, and consultants of firms located in India (N = 141). The results of the PLS path modelling assert the significant relationship between TC and MO and how MO influences firm performance; however, the link between TC and FP was found to be insignificant in the presence of MO as a mediator. Therefore, the findings of the path analysis reveal the mediation impact of MO on the TC-FP link. Overall, the study emphasises the importance of fostering technological capabilities to generate and disseminate organisation-wide marketing intelligence for enhancing superior performance.

Automated summary

Market orientation and technological capability are critical determinants of firm performance, but there is a lack of research on how they are connected. This study fills this gap by adopting the Resource-based view and Dynamic capability as theoretical frameworks. The findings show the importance of aligning a firm's technological resources and marketing orientation to generate new insights, better communication, and coordination in response to changing market needs. The empirical data was collected from key personnel in Indian firms. The results reveal the mediating effect of market orientation on the relationship between technological capability and firm performance.