Strategic Orientations as Drivers of Marketing Capabilities in SMEs: The Role of Competitor, Innovation, and Customer Orientation

Marketing deficiencies remain a leading cause of failure among small and medium-sized enterprises (SMEs). Strengthening marketing capabilities is therefore critical to their long-term success. This study investigates the impact of three core strategic orientations— competitor orientation , innovation orientation , and customer orientation —on the development of marketing capabilities in SMEs. Using data collected from 217 SME owners and managers via a structured questionnaire, the study employs partial least squares structural equation modeling (PLS-SEM) for analysis. The results reveal that all three strategic orientations positively and significantly influence marketing capabilities, with competitor orientation exerting the strongest effect. Additionally, competitor orientation enhances both innovation and customer orientations, underscoring its central strategic role. The findings also show that competitive intensity drives competitor orientation, while decentralized structures facilitate the development of all three orientations. The study offers theoretical contributions to SME strategic management and provides actionable insights for enhancing marketing effectiveness through better strategic alignment.