Marketing capabilities for small and medium enterprises that supply large companies

Purpose: The purpose of this study is to examine the effect of marketing capabilities on market orientation and sustained competitive advantage from the viewpoint of managers of small and medium-sized enterprises (SMEs) that supply large companies. This paper also analyzes the moderating role of exposure to external turbulence in the relationship between marketing capabilities and sustained competitive advantage, and between marketing capabilities and market orientation for SMEs. Design/methodology/approach: Based on the literature, this study develops a model to verify the proposed relationships. An online questionnaire collected data from 423 managers of SMEs that supply large companies to test the model. This paper analyzes the proposed model using structural equation modeling with partial least squares. Findings: According to the surveyed managers, marketing capabilities tend to play a significant role in the market orientation and perceived sustained competitive advantage of SMEs that supply large companies. Better-developed marketing capabilities can strengthen the market orientation of SMEs, helping to achieve and maintain a sustained competitive advantage. They will, thus, attract more clients and minimize their risk, regardless of the environment in which they operate. Research limitations/implications: This research contributes to marketing theory by highlighting the marketing capabilities of SMEs that supply large companies and demonstrating the importance of such capabilities for their survival. Originality/value: The study investigated the views of the SME managers that supply large companies about their company’s marketing capabilities. Traditionally, these companies have had little concern for marketing. This research focuses on an emerging market, that is not usually addressed.