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Sanna Joensuu-Salo, Kirsti Sorama and Salla Kettunen

This chapter analyses (1) the impact of market orientation (MO) and marketing capability on the business performance of small and medium-sized enterprises (SMEs) in the forest sector, and (2) the difference of this impact between internationalized SMEs and SMEs operating only in domestic markets within this sector. The data for this study comes from Finnish SMEs. Linear regression analysis showed that MO did not have a direct effect on the performance but marketing capability did. Therefore, an indirect effect was tested using path analysis. The final empirical path model was tested separately for internationalized SMEs and SMEs operating only in domestic markets. In the final model, marketing capability mediates the effect of MO on performance. Marketing capability had more value in explaining the business performance of internationalized SMEs than SMEs operating only in domestic markets.