From Market Orientation to Operational Excellence: A Dynamic Capabilities Pathway to Firm Competitiveness in Emerging Manufacturing Economies

This study examines how Market Orientation (MO) enhances firm competitiveness and operational excellence through the complementary roles of Supply Chain Innovation (SCI) and Supply Chain Efficiency (SCE), and how Digital Transformation (DT) strengthens these relationships. Drawing on Dynamic Capabilities Theory, the research conceptualizes MO as a sensing capability, SCI as a seizing mechanism, and SCE as a transforming capability that enables firms to convert market insights into cost effective and scalable operations. Using survey data from 326 manufacturing firms in an emerging economy with characteristics comparable to Asia Pacific industrial contexts, a moderated sequential mediation model was tested through Structural Equation Modeling (SEM). The results show that MO improves organizational performance directly and indirectly through innovation driven efficiency, with DT amplifying the SCI and SCE linkage. The findings highlight a capability pathway through which manufacturing firms translate market intelligence into competitiveness, particularly under conditions of digital disruption.