Digital Orientation and Company’s Performance. The Mediating Role of Relational Capacity

Abstract Digital transition is an inevitable process for most of the companies. Transforming the operating activities, the internal processes or enhancing the relationships with the customers is vital for business success. However, the existing literature reveals gaps on how digital orientation and relational capacity can lead to performance gains. The study proposes a conceptual model by which companies’ digital orientation can lead to superior financial and non financial performance with the mediating role of relational capacity. Based on a sample of 224 companies the model was tested and validated through the Structural Equations Model. The results show that relational capacity is a key mediating variable between digital orientation and financial and nonfinancial performance. The study offers practical implications for companies about the importance of design digital marketing strategies to engage with customers if the company wants to increase performance. Moreover, the study stresses the value of maintain strong and durable relationships with customers and partners to enhance the relational capacity of companies. The theoretical contribution derives from testing a model that adds empirical evidence to the current state of knowledge and that could be used in future studies.