The Moderating Effect Of E-Business Capability In The Relationship Between Market Orientation And Firm Performance

Building on multiple theoretical perspectives, we examined how e-business capability moderates the association of different dimensions of market orientation (i.e., customer, competitor, and inter-functional coordination orientation) and firm performance (i.e., financial, operational, and customer service performance). We tested hypotheses using survey data from senior executives in China. Our findings reveal that both customer orientation and inter-functional coordination can positively impact firm performance, while competitor orientation cannot affect firm performance significantly. Further, we found the complicated and interesting moderating effects of e-business capability on the multiple relationships between market orientation and firm performance. Specifically, e-business capability can strengthen the impact of customer orientation on financial and operational performance, but it weakens the relationship between competitor orientation and financial performance and the relationship between inter-functional coordination and customer service. Theoretical contributions and managerial implications of the study are discussed.