Market intelligence on business performance: The mediating role of specialized marketing capabilities

Hendar Hendar, Alifah Ratnawati, Wan Maziah Wan Ab Razak, Zalinawati Abdullah


This study aims to investigate and examine the mediating role of specialized marketing capabilities (SMC) in the relationship between market intelligence (MI) and business performance (BP) on Indonesia retail fashion SMEs. This study used 330 SMEs with maximum assets of 10 billion Indonesian Rupiah (IDR) and a maximum sales turnover of IDR 50 billion per year. We examined the relationship between MI dimensions: market intelligence generation (MIG), market intelligence dissemination (MID), and responsiveness to market intelligence (RMI) with SMC and BP by using a combination of SPSS and SEM with AMOS 22.0. A Sobel test was used to test the mediating role of SMC in the relationship between MI dimensions and BP. The results of the data analysis show that SMC has an important role as a partial mediator in the relationship between MIG, MID, and RMI with BP. This study suggests that owners or managers of SMEs recognize important market intelligence factors in increasing SMC and BP. This helps them make better investment decisions in developing the right combination of SMC to increase BP. This research integrates MI dimensions and one dimension of marketing capabilities, i.e. SMC, into an empirical model to gain a deeper understanding of the relationship between MI and SMC and how these factors form BP.  KEYWORDS


Market Market Intelligence, Business Intelligence, Competitive Intelligence, Information Systems, Geo-Economics

Full Text:



Ahmed, M. U., M. M. Kristal and M. Pagell (2014). "Impact of operational and marketing capabilities on firm performance: Evidence from economic growth and downturns". International Journal of Production Economics. 154. 59-71.

Alnawas, I. and J. Hemsley-Brown (2019). "Market orientation and hotel performance: investigating the role of high-order marketing capabilities". International Journal of Contemporary Hospitality Management.

Amin, M., R. Thurasamy, A. M. Aldakhil and A. H. B. Kaswuri (2016). "The effect of market orientation as a mediating variable in the relationship between entrepreneurial orientation and SMEs performance". Nankai Business Review International. 7. 1. 39-59.

Armstrong, J. S. and T. S. Overton (1977). "Estimating Nonresponse Bias in Mail Surveys". Journal of Marketing Research. Vol. 14. No. 3, Special Issue: Recent Developments in Survey Research (Aug., 1977). pp. 396-402.

Bagozzi, R. P. and Y. Yi (1988). "On the evaluation of structural equation models". Journal of the Academy of Marketing Science. 16. 1. 74-94.

Baron, R. M. and D. A. Kenny (1986). "The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations". Journal of Personality and Social Psychology. Vol. 51. No. 6. pp. 1173-1182.

Beneke, J., S. Blampied, N. Dewar and L. Soriano (2016). "The impact of market orientation and learning orientation on organisational performance: A study of small to medium-sized enterprises in Cape Town, South Africa". Journal of Research in Marketing and Entrepreneurship. 18. 1. 90-108.

Bruce, M., L. Barnes and L. Daly (2006). "Buyer behaviour for fast fashion". Journal of Fashion Marketing and Management: An International Journal. 10. 3. 329-344.

Carbonell, P. and A. I. Rodríguez Escudero (2010). "The effect of market orientation on innovation speed and new product performance". Journal of Business & Industrial Marketing. 25. 7. 501-513.

Chakrabarty, S., R. E. Widing and G. Brown (2014). "Selling behaviours and sales performance: the moderating and mediating effects of interpersonal mentalizing". Journal of Personal Selling & Sales Management. 34. 2. 112-122.

Chao, M. C.-H. and J. E. Spillan (2010). "The journey from market orientation to firm performance: A comparative study of US and Taiwanese SMEs". Management Research Review. 33. 5. 472-483.

Cho, H.-J. and V. Pucik (2005). "Relationship between innovativeness, quality, growth, profitability, and market value". Strategic Management Journal. 26. 6. 555-575.

Christopher, M., R. Lowson and H. Peck (2004). "CREATING AGILE SUPPLY CHAINS IN THE FASHION INDUSTRY". International Journal of Retail and Distribution Management. Vol. 32. Issue 8. pp. 367 - 376.

Day, G. S. (1994a). "The Capabilities of Market-Driven Organizations". Journal of Marketing. Vo. 5. No. 4 (Oct. 1994). pp. 37-52.

Day, G. S. (1994b). "The Capabilities of Market-Driven Organizations". Journal of Marketing. 58. 4. 37.

Debicki, B. J. (2017). "Socioemotional Wealth and Family Firm Performance: A Stakeholder Approach". JOURNAL OF MANAGERIAL ISSUES. Vol. XXIX. Number 1. pp. 82-111.

Dong, X., Z. Zhang, C. A. Hinsch and S. Zou (2016). "Reconceptualizing the elements of market orientation: A process-based view". Industrial Marketing Management. 56. 130-142.

Fornell, C. and D. F. Larcker (1981). "Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics". JMR, Journal of Marketing Research. 18. 3. 382.

Gruber-Muecke, T. and K. M. Hofer (2015). "Market orientation, entrepreneurial orientation and performance in emerging markets". International Journal of Emerging Markets. 10. 3. 560-571.

Hair, J. F., W. C. Black, B. J. Babin and R. E. Anderson (2010). Multivariate Data Analysis 7th_Edition, Pearson Prentice Hall.

Hendar, H., A. T. Ferdinand and T. Nurhayati (2017). "Introducing the religio-centric positional advantage to Indonesian small businesses". Management & Marketing. 12. 1.

Ho, K. L. P., C. N. Nguyen, R. Adhikari, M. P. Miles and L. Bonney (2017). "Exploring market orientation, innovation, and financial performance in agricultural value chains in emerging economies". Journal of Innovation & Knowledge.

Huhtala, J.-P., A. Sihvonen, J. Frösén, M. Jaakkola and H. Tikkanen (2014). "Market orientation, innovation capability and business performance: Insights from the global financial crisis". Baltic Journal of Management. 9. 2. 134-152.

Hunt, S. D. and R. M. Morgan (1995). "The comparative advantage theory of competition". The Journal of Marketing. 1-15.

Jaworski, B. J. and A. K. Kohli (1993). "Market Orientation Antecedents and Consequences". Journal of Marketing. 57. 3. 53.

Jogaratnam, G. (2017). "How organizational culture influences market orientation and business performance in the restaurant industry". Journal of Hospitality and Tourism Management. 31. 211-219.

Kajalo, S. and A. Lindblom (2015). "Market orientation, entrepreneurial orientation and business performance among small retailers". International Journal of Retail & Distribution Management. 43. 7. 580-596.

Kirca, A. H., S. Jayachandran and W. O. Bearden (2005). "Market Orientation: A Meta-Analytic Review and Assessment of its Antecedents and Impact on Performance". Journal of Marketing. 69. 2. 24-41.

Kohli, A. K. and B. J. Jaworski (1990). "Market orientation: the construct, research propositions, and managerial implications". The Journal of Marketing. 1-18.

Kohli, A. K., B. J. Jaworski and A. Kumar (1993). "MARKOR: A measure of market orientation". JMR, Journal of Marketing Research. 30. 4. 467.

Lambe, C. J. L., K. L. Webb and C. Ishida (2009). "Self-managing selling teams and team performance: The complementary roles of empowerment and control". Industrial Marketing Management. 38. 12.

Lane Keller, K. (2001). "Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs". Journal of Marketing Management. 17. 7-8. 819-847.

Langerak, F., E. J. Hultink and H. S. J. Robben (2004). "The Impact of Market Orientation, Product Advantage, and Launch Proficiency on New Product Performance and Organizational Performance". The Journal of Product Innovation Management. Vol. 21. pp. 79-94.

Ledwith, A. and M. O'Dwyer (2008). "Product launch, product advantage and market orientation in SMEs". Journal of Small Business and Enterprise Development. 15. 1. 96-110.

Lee, Y.-K., S.-H. Kim, M.-K. Seo and S. K. Hight (2015). "Market orientation and business performance: Evidence from franchising industry". International Journal of Hospitality Management. 44. 28-37.

Li, J. J. and K. Z. Zhou (2010). "How foreign firms achieve competitive advantage in the Chinese emerging economy: Managerial ties and market orientation". Journal of Business Research. 63. 8. 856-862.

Long, Z., K. Ali, E. S. John and M.-W. Alma (2017). "Exploring market orientation among Chinese small and medium-sized enterprises". Chinese Management Studies. 11. 4. 617-636.

Mason, C. H. and J. William D. Perreault (1991). "Collinearity, Power, and Interpretation of Multiple Regression Analysis". Journal of Marketing Research. Vol. 28. No. 3 (Aug., 1991). pp. 268-280.

Matsuno, K. and J. T. Mentzer (2000). "The Effects of Strategy Type on the Market Orientation–Performance Relationship". Journal of Marketing. 64. 4. 1-16.

Merrilees, B., S. Rundle-Thiele and A. Lye (2011). "Marketing capabilities: Antecedents and implications for B2B SME performance". Industrial Marketing Management. 40. 3. 368-375.

Moorman, C. (1995). "Organizational Market Information Processes: Cultural Antecedents and New Product Outcomes". Journal of Marketing Research. Vol. 32. No. 3 (Aug. 1995). pp. 318-335.

Morgan, N. A. (2012). "Marketing and business performance". Journal of the Academy of Marketing Science. 40. 1. 102-119.

Morgan, N. A., A. Kaleka and C. S. Katsikeas (2004). "Antecedents of Export Venture Performance: A Theoretical Model and Empirical Assessment". Journal of Marketing. 68. 1. 90-108.

Morgan, N. A., C. S. Katsikeas and D. W. Vorhies (2012). "Export marketing strategy implementation, export marketing capabilities, and export venture performance". Journal of the Academy of Marketing Science. 40. 2. 271-289.

Morgan, N. A., R. J. Slotegraaf and D. W. Vorhies (2009a). "Linking marketing capabilities with profit growth". Intern. J. of Research in Marketing. 26 (2009). pp. 284-293.

Morgan, N. A., D. W. Vorhies and C. H. Mason (2009b). "Market orientation, marketing capabilities, and firm performance". Strategic Management Journal. 30. 8. 909-920.

Murphy, G. B., J. W. Trailer and R. C. Hill (1996). "Measuring Performance in Entrepreneurship Research". Journal of Business Research. Vol. 36 pp. 15-23.

Murray, J. Y., G. Y. Gao and M. Kotabe (2011). "Market orientation and performance of export ventures: the process through marketing capabilities and competitive advantages". Journal of the Academy of Marketing Science. 39. 2. 252-269.

Narver, J. C. and S. F. Slater (1990). "The effect of a market orientation on business profitability". The Journal of Marketing. 20-35.

Navarro-García, A., J. Arenas-Gaitán and F. J. Rondán-Cataluña (2014). "External environment and the moderating role of export market orientation". Journal of Business Research. 67. 5. 740-745.

Nunnally, J. C. (1978). "Psychometric Methods". McGraw-Hill, New York, NY, USA.

Osakwe, C. N., M. Chovancova and B. U. Ogbonna (2016). "Linking SMEs Profitability to Brand Orientation and Market-Sensing Capability: A Service Sector Evidence". Periodica Polytechnica Social and Management Sciences. 24. 1. 34-40.

Qu, R. and Z. Zhang (2015). "Market orientation and business performance in MNC foreign subsidiaries— Moderating effects of integration and responsiveness". Journal of Business Research. 68. 5. 919-924.

Rucker, D. D., K. J. Preacher, Z. L. Tormala and R. E. Petty (2011). "Mediation Analysis in Social Psychology: Current Practices and New Recommendations". Social and Personality Psychology Compass. Vol. 5. No. 6. pp. 359-371.

Schmitz, C. (2012). "Group influences of selling teams on industrial salespeople’s cross-selling behavior". Journal of the Academy of Marketing Science. 41. 1. 55-72.

Slater, S. F. and J. C. Narver (1998). "Customer-led and market-oriented: Let's not confuse the two". Strategic Management Journal. 1001-1006.

Sobel, M. E. (1982). "Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models". Sociological Methodology. Vol. 13. pp. 290-312.

Stam, W., S. Arzlanian and T. Elfring (2014). "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators". Journal of Business Venturing. 29. 1. 152-173.

Takata, H. (2016). "Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011". Journal of Business Research.

Tarutė, A. and R. Gatautis (2014). "ICT Impact on SMEs Performance". Procedia - Social and Behavioral Sciences. 00. pp. 1-8.

Theodosiou, M., J. Kehagias and E. Katsikea (2012). "Strategic orientations, marketing capabilities and firm performance: An empirical investigation in the context of frontline managers in service organizations". Industrial Marketing Management. 41. 7. 1058-1070.

Trez, G., J. Camra‐Fierro and F. Bins Luce (2012). "Organizational structure and specialized marketing capabilities in SMEs". Marketing Intelligence & Planning. 30. 2. 143-164.

Vega-Vázquez, M., F.-J. Cossío-Silva and M.-Á. Revilla-Camacho (2016). "Entrepreneurial orientation–hotel performance: Has market orientation anything to say?". Journal of Business Research. 69. 11. 5089-5094.

Vorhies, D. and N. Morgan (2005). Benchmarking Marketing Capabilities for Sustainable Competitive Advantage.

Vorhies, D. W. and N. A. Morgan (2003). "A Configuration Theory Assessrnent of Marketing Organization Fit with Business Strategy and its Relationship with Marketing Performance". Journal of Marketing. Vol. 67 (January 2003). pp. 100-115.

Wang, Y. and H. Feng (2012). "Customer relationship management capabilities. Measurement, antecedents and consequences". Management Decision. 50. 1. 115-129.

Wei-Shong, L., H. Jing-Wen and Y. Ming-Yih (2015). "Developing the capability of marketing intelligence: A subjective dynamic capability study". Benchmarking: An International Journal. 22. 7. 1341-1359.

Wei, Y. and Q. Wang (2011). "Making sense of a market information system for superior performance: The roles of organizational responsiveness and innovation strategy". Industrial Marketing Management. 40. 2. 267-277.

Wiklund, J. and D. Shepherd (2005). "Entrepreneurial orientation and small business performance: a configurational approach". Journal of Business Venturing. 20. 1. 71-91.

Wu, J. (2013). "Marketing capabilities, institutional development, and the performance of emerging market firms: A multinational study". International Journal of Research in Marketing. 30. 1. 36-45.

Zehir, C., M. Köle and H. Yıldız (2015). "The Mediating Role of Innovation Capability on Market Orientation and Export Performance: An Implementation on SMEs in Turkey". Procedia - Social and Behavioral Sciences. 207. 700-708.

Zhang, X. and B. Xu (2019). "Know to grow: the role of knowledge integration in marketing dynamic capabilities". Chinese Management Studies. 13. 1. 171-190.

Zhou, L., W.-p. Wu and X. Luo (2007). "Internationalization and the performance of born-global SMEs: the mediating role of social networks". Journal of International Business Studies. 38. 4. 673-690.



  • There are currently no refbacks.
Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently, as well as to provide information to the owners of the site.

JISIB is indexed by Web of Science (Emerging list), ESCI, SCOPUS, EBSCO, DOAJ, Google Scholar, EconBib and SCImago, and is ranked as a Level 1 publication by the Norwegian Social Science Data Services and the Finnish Publication Forum. 



 Journal Index by SCIMAGO