Synergistic effects of market orientation implementation and internalization on firm performance: Direct marketing service provider industry

Abstract

We draw on recent advances in Market Orientation domain to examine the synergistic effects of market orientation implementation and internalization on firm performance in the context of digital transformation within direct mail service provider industry. We introduce market orientation internalization as a mediator between market orientation implementation and firm performance relationship. In addition, the effect of learning orientation is considered as a moderator that strengthens the relationship between market orientation implementation and market orientation internalization. The research model is empirically tested using Hayes (2013) conditional process analysis utilizing a unique dataset from an industry that is undergoing an unprecedented digital transformation from physical to digital communication. The results suggest that firms that practice high levels of market orientation implementation and internalization perform better in both financial performance and customer service performance.