Market Orientation and Corporate Performance: The Mediated Effect of Marketing Capability

Market orientation is regarded as one of the executive tools of marketing concept, and having been one of the most important research topics in academia, including its antecedents and consequences and the relationship between market orientation and corporate performance. The existing theories are not unanimous about the impact of market orientation on corporate performance. The underlying causation lies on the relationship between market orientation and corporate performance is not direct, but some mediums are in existent. This paper focuses on the mediated effect of marketing capability on the relationship between Market orientation and corporate performance, constructing a mediated model and testing it empirically based on Chinese companies. According to the conclusions, we indicate that companies must actively transform their market orientations into marketing capabilities effectively, so as to gain excellent performances and persistent competitive advantages.