MEDIATING EFFECTS OF MARKET ORIENTATION ON THE RELATIONSHIP BETWEEN MARKET ENVIRONMENTAL UNCERTAINTY AND ADAPTIVE CAPACITY

ABSTRACT

This study investigated the effects of market orientation and environmental market uncertainty on the adaptive capacity of technology-based firms located in innovation habitats. It employed a survey of 137 companies, with data analyzed using structural equation modeling. The results revealed that market orientation, characterized by an intensive customer focus, emphasis on information, and inter-functional coordination, significantly increases organizational adaptive capacity. Environmental market uncertainty, defined by unpredictable consumer demands, positively correlated with both market orientation and adaptive capacity. These findings demonstrate that market orientation mediates the relationship between environmental market uncertainty and adaptive capacity, suggesting that firms can leverage market orientation as both defensive and offensive strategies.

Keywords:
market orientation; environmental market uncertainty; adaptive capacity; technology-based companies; structural equation modeling.