ABSTRACT
Small and Medium Enterprise (SMEs) sector has contributed benefits on economic foundation and growth potential of many countries, especially franchising. This research aims to investigate the impacts of strategic orientation on franchising firms performance through the mediating influences of marketing adaptation capability. The conceptual framework is built by applying Resource-based view (RBV) as a theoretical foundation. The data were collected by using a questionnaire as research tool from a sample group of 114 franchising firms in Thailand and assigned a managing director or a managing partner as the key informant. This research proposed four hypotheses for statistically testing by employing Ordinary Least Square (OLS) regression analysis. The results indicated that three activities of strategic orientation including innovation orientation, customer orientation, and cost orientation, were significant strategic activities that support marketing adaptation capability of a firm.Furthermore, market dynamism did not play moderating effect on the relationships among strategic orientation and marketing adaptation capability as well as on the relationship between marketing adaptation capability and firm performance. However, even though marketing adaptation capability influences firm performance but it was not statistical significantly found its impact on firm performance as expected as inverted-U shape. This research, in addition, provides fruitful discussion and proposes some directions for future research in the area
KEYWORDS
Strategic Orientation, Marketing Adaptation Capability, Dynamic Capability, Franchise