The mediating role of marketing capability: evidence from Korean companies

Purpose - The purpose of this paper is to shift the research focus from singular investigations of strategic orientations (i.e. learning, technology, market, customer, and competitor) to a broadened exploration of how various combinations of orientations link to firm performance. Further, the paper reveals the mediating role of marketing capability between strategic orientations and firm performance. Design/methodology/approach - Mail and e-mail surveys were received from 198 Korean executives among the nation's Top 500 firms (across various industries). Generally, multiple regression analyses were conducted to test the various hypotheses. Findings - Data confirm that each strategic orientation has distinct paths through marketing capability (single or multiple, and mediating) that significantly impact firm performance. Practical implications - Fostering marketing capability, including marketing planning and implementation ability, will have a direct positive impact on firm performance. In addition, companies should understand how differently their cultural resources and orientations affect firm performance. Originality/value - This paper is the first to argue that a deployment mechanism, marketing capability, is needed between strategic orientations and business performance. The paper further contributes by extending geographic generalizability to Asian countries (since the majority of extant research on organizational orientations and capabilities comes from western countries).