The relationship between market-oriented capabilities, market- orientedness and firm performance

In this study, the harmony of the school of resource-based view, market-oriented organizational capabilities and market-orientedness are generally examined in terms of achieving high firm performance. In this context, the effects of a market-oriented organizational capabilities and market-orientedness on firm performance are investigated. First, resource-based view, organizational capabilities, market-oriented organizational capabilities and market-orientedness are explained based on the literature. Subsequently, the relationships between market-oriented organizational capabilities and market-orientedness as well as market-oriented approach of a firm and firm are analyzed and the impacts of these relationships on firm performance are studied. A research model and associated hypotheses have been developed for the study. The research model consists of four aspects of market-oriented organizational capabilities, three aspects of market-orientedness, and firm performance. Validity and reliability of the measures used in the study are tested using data obtained from 272 business managers and confirmatory factor analysis procedures. Lastly, the method of structural equation modeling is employed to test the hypotheses. As a result of this study, it has been determined that market-oriented organizational capabilities have positive effects on firm performance, and market-orientedness functions as an intermediate variable in the relationship between market-oriented capabilities and firm performance.