BUS602: Marketing Management

The results of the model in the form of path coefficients are presented in Fig. 1. Most of the hypotheses posited in the study are supported. The impact of environmental turbulence on market orientation (0.77) and entrepreneurial orientation (0.51) was found to be high and significant.

Entrepreneurial orientation has significant impact on market orientation. However it does not have any significant impact on marketing capabilities and therefore hypothesis H4 is not supported by the data. Entrepreneurial orientation directly and indirectly impacts firm performance through mediating variables such as market orientation and marketing capabilities. Entrepreneurial orientation with a weight of 0.267, has a direct impact on firm performance. Market orientation had a very high impact on marketing capability with a weight of 0.73, followed by that of marketing capability on performance with a weight of 0.47.

The above findings suggest that the NTBFs (new technology based firms) need to continuously focus on the development of marketing capabilities to attain firm performance. The environmental turbulence along with the entrepreneurial and market orientation has a direct and indirect effect on the marketing capability of the firm. Table 3 depicts the total effects i.e. direct and indirect effects of various constructs on firm performance. Marketing capability has the highest total effect on performance (0.477), followed by environmental turbulence (0.387), market orientation (0.348) and entrepreneurial orientation (0.217).

Marketing capability with an R² of 0.361 has the highest explanatory share for firm performance. Emphasis on the building of strong capabilities in the areas of marketing, market and entrepreneurial orientation can enable firms to attain higher firm performance.