Market orientation, competence-based marketing capability and firm development

Abstract

Purpose - The topic of competence-based marketing has attracted much attention from business scholars, further exploration of competence-based marketing capability is especially important. The main purpose of this study is to address and investigate the relationship between market orientation and original equipment manufacturer (OEM) suppliers’ competence-based marketing capability, along with the impact of competence-based marketing capability on product-linked development and relation-linked development. Methodology - Based on a sample of 119 Taiwan's OEM suppliers, we used Smart PLS 2.0 to perform SEM and to evaluate both the quality of the measurement model and the interrelationships of the constructs. Findings - Empirical testing of 119 OEM suppliers suggests that a proactive market orientation has a positive influence on the development of competence-based marketing capabilities. Furthermore, the development of competence-based marketing capability leads OEM suppliers to engage in product-linked and relationship-linked development. Conclusion - The topic of competence marketing has attracted much attention from business scholars; however, no empirical studies have measured companies’ capabilities in competence marketing. Therefore, the framework of this study followed linkages developed from the resource-based view (strategic orientation → organizational capabilities → organizational performance) for the purpose of exploring the antecedents and effects of CBMC.