Market orientation, distributor relationship, and return on assets : Optimizing distribution performance for industrial firms

The purpose of this paper is to explore how market orientation is related to relationship building outcomes in the downstream distribution process. The authors examine the role of distributor satisfaction in mediating the association between market orientation in distribution and return on assets.

Market orientation in distribution was measured by distributor orientation, competitor orientation, and interfunctional coordination.

Results showed that the positive relationship between market orientation in distribution and distributor satisfaction was strongly supported. While distributor orientation and competitor orientation were both positively related to distributor satisfaction and return on assets, interfunctional coordination was not related to either distributor satisfaction or return on assets. However, interfunctional coordination lessened the positive relationship between distributor orientation and distributor satisfaction.

This study fills research void in downstream relationship building in the distribution process in a business-to-business context.