Market Orientation on Tourism Service Performance: The Mediating Role of E-Marketing

Aims: In modern turbulent marketplace market orientation is considered a business culture that facilitates firms in achieving sustainable competitive advantage by creating superior customer value and it links to the business performance. With the increasing use of technology in the marketing activities of all types of organizations, it is important to know the extent to which electronic marketing mediates the impact of market orientation in turn, related to firm performance. The aim of this study is to find out “The inter-relationship between market orientation and e-marketing in order to investigate alternative mechanisms through which both contribute to tourism services performance of selected tourist hotels in Badulla area”.

Study Design: Direct and indirect effects of market orientation on tourism service performance are examined using survey method. Primary data were collected from a sample of 156 tourism firms located in Badulla area. Location of those tourists’ firms are mainly falling into four divisional secretariat areas. From 2019 March to July.

Methodology: The collected data has been analyzed by using descriptive statistics, correlation analysis and regression analysis.

Results: The findings indicate that market orientation is found to contribute to performance through a dual mechanism in that it contributes both directly and indirectly, through e-marketing, to the relationship. And there is a high level of market orientation, e-marketing, and tourism service performance of tourist hotels in Badulla area. Results showed that there is strong positive relationship between market orientation, e-marketing and tourism service performance. Further there is a significant positive impact on market orientation, e-marketing and tourism service performance. The mediation effects observed suggests that e-marketing is playing a partial mediating role in the relationship in between market orientation and tourism service performance of tourist hotels.

Conclusion: The results indicate that academics and managers should consider the inter-relationships between multiple sources of competitive advantage when looking for explanations of services performance and particularly, tourism services.