The role of market orientation in building supply chain capabilities for fast-growth family SMEs

This research investigates the role of market orientation (MO) and supply chain capabilities in Australian fast-growth family SMEs (FGFSMEs). Two research questions are addressed: i) how does MO affect supply chain capabilities (i.e., information exchange, inter-firm activity integration, inter-firm coordination & supply chain responsiveness)?; and ii) how do supply chain capabilities influence sales performance? Statistical analyses involved the use of exploratory and confirmatory factor analytic techniques and structural equation modeling. Results indicate that supply chain capabilities are able to transform a market-based resource into higher value for FGFSMEs. The mediation effect of supply chain capabilities implies that incorporating mediators can help better explain the impact of MO on firm performance. In other words, embedding MO into supply chain systems enables these entities to enhance channel specific assets through activity integration, information exchange and superior coordination with supply chain partners. Family firm management needs to foster organizational cultures that embody MO throughout the organization.