TITLE

Exploring a Missing Link for the Market Orientation Effect on Business Performance: The Strategic Role of Customer Value Creation Capabilities

AUTHOR(S)
Yi-Yung Chung
PUB. DATE
September 2015
SOURCE
Journal of Management (0255-9838);Sep2015, Vol. 32 Issue 3, p247
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Due to the fact that the direct effect of market orientation on firm performance reported by prior studies is still equivocal and needs further clarification, this study, through applying the capability-based view (CBV) within the logic of organizational strategy process to construct a theoretical framework, purported to explore and validate the mediating mechanisms between them, thereby proposing a more robust model, which systematically and concurrently utilizes various customer value creation capabilities as mediators to clarify the discordant results of prior research. The questionnaire investigation method was adopted, with a sample drawn from the 370 listed electronics firms of Taiwan Security Exchange (TWSE). The collected data were analyzed to test the hypotheses utilizing Structural Equation Model (SEM). The most important contribution of the empirical result is to identify five distinctive customer value creation capabilities-quality capability, service capability, cost control capability, speed capability, and innovation capability-that fully mediated the effect of market orientation on business performance and simultaneously demonstrated their varied strategic roles for a firm's competitive advantage, thereby clarifying the mechanism through which market orientation affects business performance. In addition to the implication of the empirical results, the directions for future research on related issues were also suggested.
ACCESSION #
111793429

 

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