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Market Orientation on Tourism Service Performance: The Mediating Role of E-

Marketing

Article in Asian Journal of Economics Business and Accounting · January 2021

DOI: 10.9734/AJEBA/2020/v20i430331

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 Asian Journal of Economics, Business and Accounting

20(4): 33-43, 2020; Article no.AJEBA.63369

ISSN: 2456-639X

Market Orientation on Tourism Service Performance:

The Mediating Role of E-Marketing
Chavindi B. Paranage1* and F. B. Kennedy1
1
Department of Management, Faculty of Commerce and Management, Eastern University, Sri Lanka.

Authors’ contributions

This work was carried out in collaboration between both authors. Authors CBP and FBK designed the
study. Author CBP performed the statistical analysis and wrote the first draft of the manuscript. Author
FBK guided and supervised the whole study. Both authors read and approved the final manuscript.

Article Information

DOI: 10.9734/AJEBA/2020/v20i430331
Editor(s):
(1) Dr. Maria Ciurea, University of Petroșani, Romania.
Reviewers:
(1) Eliza Bachega Casadei, Brazil.
(2) Zvezdan Stojanovic, Slobomir P University, PIM University, European University, Bosnia and Herzegovina.
Complete Peer review History: http://www.sdiarticle4.com/review-history/63369

Received 28 September 2020

Accepted 03 December 2020
Original Research Article
Published 07 January 2021

ABSTRACT

Aims: In modern turbulent marketplace market orientation is considered a business culture that
facilitates firms in achieving sustainable competitive advantage by creating superior customer value
and it links to the business performance. With the increasing use of technology in the marketing
activities of all types of organizations, it is important to know the extent to which electronic marketing
mediates the impact of market orientation in turn, related to firm performance. The aim of this study
is to find out “The inter-relationship between market orientation and e-marketing in order to
investigate alternative mechanisms through which both contribute to tourism services performance
of selected tourist hotels in Badulla area”.
Study Design: Direct and indirect effects of market orientation on tourism service performance are
examined using survey method. Primary data were collected from a sample of 156 tourism firms
located in Badulla area. Location of those tourists’ firms are mainly falling into four divisional
secretariat areas. From 2019 March to July.
Methodology: The collected data has been analyzed by using descriptive statistics, correlation
analysis and regression analysis.
Results: The findings indicate that market orientation is found to contribute to performance through
a dual mechanism in that it contributes both directly and indirectly, through e-marketing, to the
relationship. And there is a high level of market orientation, e-marketing, and tourism service
_____________________________________________________________________________________________________

*Corresponding author: E-mail: [email protected];

 Paranage and Kennedy; AJEBA, 20(4): 33-43, 2020; Article no.AJEBA.63369

performance of tourist hotels in Badulla area. Results showed that there is strong positive
relationship between market orientation, e-marketing and tourism service performance. Further
there is a significant positive impact on market orientation, e-marketing and tourism service
performance. The mediation effects observed suggests that e-marketing is playing a partial
mediating role in the relationship in between market orientation and tourism service performance of
tourist hotels.
Conclusion: The results indicate that academics and managers should consider the inter-
relationships between multiple sources of competitive advantage when looking for explanations of
services performance and particularly, tourism services.

Keywords: E-marketing; market orientation tourism service performance.

1. INTRODUCTION Furthermore, the current growth of the Internet

has significantly changed the operating
Tourism, the world’s biggest industry, is environment of the hotel industry. The Internet
fragmented, with diverse offerings and activities, has emerged as a revolutionary marketing tool in
such as accommodation, transportation, presenting travel information and online
shopping, and recreational things to do. Despite transactions [7]. The significance of the Internet
the improvement and rapid boom of small in common and for the marketing function, in
ventures in the tourism industry worldwide, solely particular, there has been a growing center of
quite a few studies have been carried out on their attention to grasp the determinants of e-
overall performance [1,2]. Tourism industries all Marketing adoption within firms. E-Marketing can
over the world are presently going through rapid be considered as a new philosophy and a
changes due to market globalization, intensified modern business practice concerned with the
competition, economic recession, and the marketing of goods, services, information and
dynamic evolution of new technologies. The ideas through the Internet and different electronic
persisted boom in the tourism industry and the means. There are several advantages of e-
foreign exchange earnings it generates has marketing, the most outstanding ones are
made the tourism enterprise to be one of the effective and environment-friendly
most important industries in the world economy communications links with stakeholders, new
[3]. The intensified competition for the tourism product development opportunities, new markets
markets has to drive to the significance of market and cost reduction [8,9]. Electronic marketing is
orientation as an imperative firm strategy for the more than just marketing carried out over the
success of tour firms as they market and develop Internet. It entails the fine use of technology in all
goals in their tourism packages. It is in opposition its forms, in such a manner that it performs an
to this heritage that countries continue to accord aiding role, which is described via business and
considerable interest to the tourism industry. marketing needs.
Given the complexities of the marketplace, 2. PROBLEM STATEMENT
extended competition, globalization, changing
consumer wishes and wants, firms require a Tourism has been the fastest growing industry in
robust market orientation and progressive the service sector around all over the world.
marketing practices to continue to be Tourism in growing countries has been more
competitive. They should hence consequently essential than in developed countries. Some
oversee their target markets more proficiently reasons for this are considered to be financial
and effectively than their competitors. This development, the possibility for rural human
requires them to be market oriented. Market beings to earn their living through small and
orientation has been identified as a good medium-sized ventures (SMEs) or the informal
indicator for reacting to market necessities and sector, inflow of foreign currency, and the reality
gives a solid foundation for a sustainable that tourism should make contributions to poverty
competitive gain for a company [4]. There are lessening if managed correctly.
two distinguished principles of market orientation
that have been given by way of [5] and [6]. Tourism has slowed down a bit during the
While [5] considered market orientation previous few years. The growth rate used to be
as the implementation of the Marketing only 3.8 percent, and the prognosis between
concept, [6] considered as an organizational 2010 and 2030 indicates a growth rate of only
culture. 3.3 percent per year. The range of tourists in the

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world has expanded from 25 million in and absence of strategies for tourism programs
1950 to over 1.1 billion in 2014, and its and recreational services can be stated as some
export value is USD1.5 billion. This is about 6 of the reasons for the backwardness of the
percent of the world’s whole exports, and 30 tourism industry [10]. Those facts also
percent of the world’s total services exports. The stimulating to conduct this research study in Sri
forecast is anticipated to attain 1.8 billion tourists Lankan tourism context to discover to what
in 2030. As for the Sri Lankan context, it extent tourism firms in Sri Lanka especially in
was the same. Trading economics stated that the Badulla area embraced the market orientation
number of tourist arrivals in Sri Lanka concept and whether that was connected to their
declined 28.3 percent year on year (Trading performance. And also technology has emerge
Economics). as a key in many areas of lifestyles and work
whereas the level of implementation of e-
Many locations in the world have invested in marketing in the hotel industry as hotels that
tourism improvement due to the fact of the have a degree of excessive in the practice of e-
industry’s importance for socio-economic marketing excellent performance questions had
development where it generates export earnings been aimed at gathering facts on business
as well as the growth of SMEs and the advent of performance. The same situation was
jobs. Worldwide, one out of eleven jobs are experienced in tourist hotels in Badulla area due
directly or indirectly dependent on the tourism to an increase in the number of service
industry (UNWTO, 2015a). providers. It means every tourism firm in Badulla
area try to attract and retain customers by
So far as there is only a few researches has providing excellent services than their
been conducted on the impact of market competitors. For these circumstances, hotel firms
orientation on tourism service performance with must realize the importance of adopting market
the mediating role of e-marketing. However, it is orientation to their firms as well as adapting e-
not identified whether market orientation and marketing towards attaining excellent
tourism service performance has addressed in performance.
the tourism industry in Sri Lankan context,
particularly in Badulla area. Thus, there exists a The experience of the consumer (in this case a
clear empirical gap concerning market orientation tourist) of the destination’s communication, travel
on tourism service performance and e-marketing arrangements, on-website online experience,
in the tourism industry. This empirical gap and all different interacting elements will add up
becomes a problem for marketers in addressing to the total experience of the visit to the
tourism performance. destination. If the whole experience is excellent
the clients are satisfied and they will promote the
Further, although researches acknowledge the country, destination and/or the points of interest
importance of the tourism service performance in their network.
concept by using marketing practices and have
made attempts to investigate some relationship Based on the above discussion, this study
between tourism service performance, market attempts to;
orientation, and e-marketing. But the
interrelationships between these constructs are “Examine the impact of market orientation on
still not well understood particularly related to the tourism service performance with the mediating
tourism industry. It clearly states that there is role of e-marketing in tourist hotels in Badulla
literature gap exists in this study area. Which area”.
means literature regard to market orientation,
tourism service performance and e-marketing The following research questions address the
has not fully explored yet. This study addresses research problem:
this as a literature gap and attempt to fill through
this study. 2.1 Research Questions
There are many reasons that influenced for the 1. What is the level of market orientation, e-
backwardness of the tourism industry. Sharp marketing and tourism service
decline in the number of tourists, the small performance in tourist hotels in Badulla
number of distinguished hotels and low quality of area?
services, absence of reliable financial and 2. What is the relationship between market
banking services, poor communication facilities, orientation, e-marketing and tourism

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service performance in tourist hotels in needs better than competitors in a particular

Badulla area? market segment [13,14,15,6]. Concurring to
3. Whether market orientation has an impact Hilman and Kaliappen (2014), in his work on
on e-marketing along tourism service market orientation, Hult and Ketchen (2000) and
performance in tourist hotels in Badulla Voola and O’Cass (2010) recognized market
area? orientation as the set of organizational
4. Does the e-marketing mediating on the capabilities that enables to serve targeted
relationship between market orientation customers and monitor the organization’s
and tourism service performance in tourist competitors more efficiently. It is accurately
hotels in Badulla area? concerned with intangible competencies,
specifically organizational culture as validated by
2.2 Research Objectives the link between competitor orientation and
customer orientation and performance. Hence,
1. To identify the level of market orientation, dynamic capabilities were found to be a suitable
e-marketing and tourism service perspective to describe this study that highlighted
performance in tourist hotels in Badulla market orientation and performance linkages.
area.
2. To identify the relationship between market 3.1.1 Dimensions of market orientation
orientation, e-marketing and tourism
service performance in tourist hotels in 3.1.1.1 Customer orientation
Badulla area.
3. To examine the impact of market Customer orientation is concerned with enough
orientation on e-marketing along tourism understanding of target customers to be in
service performance in tourist hotels in apposition to form prevalent value. It requires
Badulla area. that a marketer is aware of the buyer’s entire
4. To identify whether the e-marketing value chain (Day & Wensley, 1988). And,
mediating on the relationship between customer focus is an essential component in
market orientation and tourism service figuring out market orientation. Customers do not
performance in tourist hotels in Badulla know how their needs will evolve or how certain
area. technologies may impact on the satisfaction of
those needs. As a result, based on customer
3. LITERATURE REVIEW feedback, managers are forced into developing
new services like already existing ones.
3.1 Market Orientation Customer orientation is a set of convictions that
places the customer’s interest first, while not
Market orientation is considered a fundamental except other stakeholders such as owners,
source of sustainable competitive advantage for managers, and employees, to create a long-term
a business enterprise since it helps to create advisable business. Customer orientation
optimal value for its customers. As such, with this requires a sufficient understanding to produce
marketing approach managers have a device products or services of optimal value. Although
that can deliver greater business performance of that customer orientation improves overall
the organization. An effective influence on an performance and service industries want to
organization’s performance requires its impart customer orientation to employees if they
managers to listen and recognize customer are to strengthen the quality of the firm and its
needs to superior itself in the market vicinity [11]. services.

Market orientation has attracted the immense 3.1.1.2 Competitor orientation

attention of scholars and academics. It is
because the market orientation closely related to Competitor orientation emphasizes
fundamentals of marketing theory. According to understanding of the strengths and weaknesses
marketing theory, an organization is market- of existing and potential competitors and at the
oriented when its culture is systematically and same time monitoring competitor behaviors to
entirely committed to the continuous creation of meet the latent and potential needs of the target
superior customer value [12]. The marketing customer. Naver and Slater in 1990 prove the
concept is traditionally viewed as a business above statement by stating that competitor
philosophy focusing on the implementation of orientation is the potential persevering to
marketing activities designed to satisfy customer recognize the capabilities and present strategies

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of main competitors that the customer’s needs now find themselves in a better position to
afford business goals and the use of expertise to compete in international destinations, which in
create optimum customer value. turn results in accelerated international
competition, not only between destinations
3.1.1.3 Inter-functional coordination additionally between hotel establishments. On
the other hand, tourists are increasingly
Inter-functional coordination coordinates all demanding and do not only focus on the price.
aspects of the organization and operation of the The hotel enterprise's competitiveness must
organization and operation of customer and center attention on enhancing performance
market information to create value for the through better service quality and the search for
customer. Moreover, Tse et al derived that inter- differentiation greater competitiveness has made
functional coordination is dispersal of information quality emerge as a key factor for hospitality
about customers and competitors among all hotels. A combination of organizational variables
areas of staff and organizations to have a better like change in turnover, profits, number of
understanding of the needs and wants of the employees in the previous operational year,
customer and making arrangements to overcome customer spending, and customer numbers,
competition. Additionally, they divided inter- were used by Wood (2002) to empirically
functional coordination into four parts as measure small tourism venture performance.
functional integration in strategy, information
shared among functions, dissemination of 3.3.1 Dimensions of tourism service
information and coordination among all units performance
towards creating value for the customer.
3.3.1.1 Market performance
3.2 E-Marketing
Market performance is defined as the
E-Marketing implies the application of marketing effectiveness of an organization's marketing
standards and strategies through electronic activities and is measured by items about
media and more specifically the Internet. Strauss achieving customer satisfaction, providing value
and Frost [16] defined e-Marketing as the use of to customers, retaining customers, and attaining
information technology in the techniques of the desired market share. Market performance
creating, communicating, and handing overvalue refers to a firm’s “ability to satisfy and retain
to customers, and for managing customer customers by offering quality products and
relationships in ways that benefit the organization services” (Moorman & Rust, 1999, p. 187).
and its stakeholders. E-marketing adoption
shapes how the generation of relational rents are Market performance refers to the company’s
maintained and developed and promotes ability to satisfy, develop, and retain customers
information exchange between sellers and by offering products, services, and other
customers. Furthermore, e-marketing confers a elements that suit their needs (Moorman & Rust,
competitive advantage to the firms involved [17, 1999). All these will lead to superior financial
Brodie, Winklhofer, Coviello, & Johnston, [18]; performance because satisfying customers
Trainor, Rapp, Beitelspacher, & Schillewaert, increases repeat purchases, reduces complaints,
[19]. E-Marketing functionality additionally encourages them to buy other company
creates value by enabling employees to improve products, and generates positive word-of-mouth
their center of attention on the customer by way recommendations (Szymanski & Henard, 2001),
of synchronizing activities and information achieving customer loyalty enables the firm to
throughout the organization. Valuable, outside-in maintain a steady customer base, as well as
facts can be built-in with other customer data to command a premium price for or sell more of its
improve overall sales productivity and products at a given price (Day & Wensley, 1988),
organizational efficiency (Kim & Jae, 2007). and developing customers helps the firm more
deeply penetrate and/or expand its market [20].
3.3 Tourism Service Performance
3.3.1.2 Financial performance
Tourism is an increasingly globalized sector in
which inter-destination competition is becoming Financial performance reflects the firm’s
greater and greater. This phenomenon is profitability and market impact (Moorman & Rust,
caused, amongst other things, by the fact that 1999) frequently used indicators of financial
tourism enterprises, among which are hotels, performance are costs, sales revenue,

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profitability, and market share. And, financial interactive technologies to create and mediate
performance reflects business sector results and dialogue between the firm and its customers [27].
consequences that exhibit the overall financial E-marketing consist of an innovative recreation
health of the sector over a specific period. It due to the fact it develops new methods of
indicates how well an entity is utilizing its interacting with customers [28] and offers new
resources to maximize the shareholders’ wealth service delivery systems [29] and approaches
and profitability. Explains that the financial that minimize cost [30]. E-marketing depends on
performance concerning profitability and technology to allow interactivity and accordingly
discussed the components of return on assets differs from other marketing practices, with the
and relates them with the firm size. aid of providing customers get entry to
information whilst the use of interactive
3.4 Market Orientation and Tourism technologies permits these customers to grant
Service Performance information to the business [18]. Lages et al. [31]
has proposed the conceptual framework
Chen and Myagmarsuren [21] stated that market including market orientation is regarded as one
orientation as a business strategy has recently of the internal forces along with organizational
been adopted in the travel and tourism industry, innovation and bureaucratization and
as well as other industries, to enhance centralization that influence e-marketing and
performance and also Pena, Jamilena and consequently business performance.
Molina [22] investigated the importance of market
orientation as a business strategy within the rural Researcher has formulated the following
tourism sector. A market-oriented firm can hold hypotheses based on the above empirical
existing customers by keeping them satisfied and findings.
loyal, entice new customers, fulfill the specified
level of growth and market share, and H2: There is a significant impact of market
subsequently accomplish proper levels of orientation on e-marketing.
business performance [20]. A tremendous flow of
research reviews a direct positive effect [14,23, 3.6 E-marketing and Tourism Service
24, Langerak, 2002), some other researchers Performance
have examined a mediated relationship [25], and
at last investigate has tried a moderate link Although the accelerated interest in e-marketing,
between market orientation and business there is restrained information in the literature
performance [26]. In a widespread assessment explaining its link to business overall
of associated literature, the majority of the performance. Wu et al. [32] studied four kinds of
studies (68 percent) investigating a direct technology-based industries in the USA and
relationship between these two constructs reported a positive impact of e-business depth on
reported positive effects, number of (30 percent) firm performance expressed as business
studies discovered no effects whereas a small efficiency, sales performance, patron
range (2 percent) indicated negative effects satisfaction, and relationship development.
(Langerak, 2002). This relationship used to be Brodie et al. [18] discovered that the adoption of
also examined in the tourism industry and it was e-marketing is positively related to marketing
once discovered that the degree of market performance and specifically on customer
orientation is positively related to hotels’ financial acquisition and retention.
and marketing performance (Sin et al., 2005).
Research on e-marketing adoption in the tourism
Researcher has formulated the following sector is centered either on consumers (Sigala,
hypotheses based on the above empirical 2006; Ho & Liu, 2005), or tourism businesses
findings. (Baloglu & Pekcan, 2006). Regarding the role of
e-marketing and its link to tourism enterprise
H1: There is a significant impact of market performance, contradictory findings have been
orientation on tourism service performance. stated in the literature. A study among travel and
hospitality organizations published that the
3.5 Market Orientation and E-marketing majority of them reflect consideration on their
web site as a significant aggressive weapon and
E-marketing, as an innovative technology-based extensive mean in acquiring new customers.
activity, has been regarded as one of the most
important elements of marketing practice that H3: There is a significant impact of e-marketing
entails the use of the internet and other on tourism service performance.

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3.7 E-marketing Mediating on the Researcher distributed questionnaires to whole

Relationship between Market population. Total study population is 156 hotel
Orientation and Tourism Service managers. Hence it was a population study.
Performance
In this study, data were collected through the
The findings of the study further confirm that primary data. The primary data are those which
market orientation determine service are collected a fresh and for the first time. In this
performance. However, this is a dual research, primary data were collected through
mechanism, a direct and indirect effect, mediated the questionnaire from 156 tourist hotel
by existing marketing resources such as e- managers in Badulla area. The data was
marketing. Moreover in previous research on the collected from the selected sample over a period
factors influencing e-marketing by examining the of two weeks. The data related to the selected
role of market orientation and confirming that e- sample was collected using the questionnaire
marketing is integrated within and inter-related method. The questionnaire was developed based
with other marketing resources and practices [18, on two sections namely “section 1” general
Day, G S; Bens, K J, 2005; [32]. information and “section 2” research information
from 156 samples which represent managerial
Prior empirical evidence support that there is a level personnel working in tourist hotels in
positive direct contribution of market orientation Badulla area. The variables in the research
on performance [14,23] Deshpande & Farley, (market orientation, e-marketing, and tourism
1998; Langerak, 2002; Sin et al., 2005) and also service performance) were measured through
there is an indirect effect via innovative activities questionnaires with five-point Likert Scale and
(Gray & Hooley, 2002; Agarwal, Erramilli, & Dev, Nominal Scale which were completed by the
2003; Manzano, Kuster, & Vila, 2005; Matear, respondents themselves appropriately as they
Osborne, Garrett, & Gray, 2002).Previous study perceived respond to each and every question.
results exhibit that e-marketing affect positively
tourism business performance contrary to The market orientation was measured by using
previous anticipations in the tourism literature three dimensions as customer orientation,
(Vasudavan & Standing, 1999). competitor orientation and inter-functional
coordination. To measure independent variable,
H4: The e-marketing mediating on the relationship 15 Likert Scale questions have been used. 06
between market orientation and tourism service questions for customer orientation, 04 for
performance. competitor orientation, and 05 for inter-functional
coordination. To measure the mediating effect,
4. CONCEPTUALIZATION FRAMEWORK 05 Likert Scale questions were included in the
instrument for measuring e-marketing. The
dependent variable was measured by using two
dimensions as market performance and financial
performance. To measure this 15 Likert Scale
questions have been used 07 for market
performance and 08 for financial performance
were measured by the responses of managers of
respective hotels.

6. RESULTS AND DISCUSSIONS

Results showed that there is a high level of

Fig. 1. Conceptualization framework market orientation, e-marketing, and tourism
Source:(Tsiotsou & Vlachopoulou, 2011) service performance of tourist hotels in Badulla
area.
5. METHODOLOGY OF THE STUDY
Further, there is strong positive relationship
The targeted population of the present study was between market orientation, e-marketing and
managers of the tourist hotels in Badulla area. tourism service performance. Further there is a
Location of tourist hotels in Badulla area includes significant positive impact on market orientation,
four divisional secretariat divisions namely e-marketing and tourism service performance.
Badulla, Ella, Bandarawela, and Haputhale. The mediation effects observed suggests that e-

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marketing is playing a partial mediating role in impact on tourism service performance of the
the relationship in between market orientation tourist hotels. Thus that following hypothesis was
and tourism service performance of tourist hotels accepted.

The Cronbach’s alpha value of MO was 0.914 H1: There is a significant impact of market
(excellent). For the three dimensions of MO that orientation on tourism service performance.
were comprise of customer orientation,
competitor orientation, and inter-functional As per the findings of Model-II regression; 55.1
coordination have Cronbach’s alpha value 0.781 percent of the variability of e-marketing is
(acceptable), 0.776 (acceptable), and 0.772 explained by the market orientation at the 0.05
(acceptable) respectively. For e-marketing it was significant level. Findings confirmed that market
0.769 (acceptable). And for tourism service orientation has high positive impact on e-
performance it was 0.871 (good). For the two marketing in the tourist hotels. And also following
dimensions of TSP that were comprise of market hypothesis was accepted.
performance and financial performance have
Cronbach’s alpha value 0.758 (acceptable) and As per the findings of Model-II regression; 55.1
0.770 (acceptable) respectively. percent of the variability of e-marketing is
explained by the market orientation at the 0.05
Overall market orientation has the mean value significant level. Findings confirmed that market
of X1= 4.0650 with standard deviation of 0.43857. orientation has high positive impact on e-
Three dimensions of market orientation have marketing in the tourist hotels. And also following
mean values 4.0096, 4.1266, and 4.0821 with hypothesis was accepted.
the standard deviation of 0.45761, 0.48318, and
0.47756 correspondingly. The mean value of H2 : There is a significant impact of market
e-marketing is 4.0603 with standard deviation of orientation on e-marketing.
0. 44369. Tourism service performance has
the mean value of X1= 4.0269 with As per the findings of Model-III regression; 71.2
standard deviation of 0.37543 and mean value of percent of variability in tourism service
two dimensions are 4.0165, 4.0361 with performance of tourist hotels was explained by e-
the standard deviation of 0.40405, marketing at the 0.05 significant level.It is found
0.38704respectively. that using e-marketing in hotel industry was more
important for hotels to achive higher performance
All correlations are statistically significant and also to maintain competitive advantage.
because all p-values are less than 0.05. The From this it was confirmed that e-marketing has
correlation coefficient (r) value was 0.742 significant impact on tourism service
between market orientation and e-marketing at performance and following hypothesis was
the 0.01 significance level. Moreover, the value accepted.
of the correlation coefficient falls under the
coefficient range of 0.5 to 1.0. It shows that, H3 : There is a significant impact of e-marketing
there is a strong positive relationship between on tourism service performance.
market orientation and e-marketing.
This study discussion so far suggested that
The value of the correlation coefficient between effects of market orientation on tourism service
e-marketing and tourism service performance performance is mediated by e-marketing. as per
was 0.844. This indicates there is a strong the decision criteria it could be concluded that e-
positive relationship between e-marketing and marketing play a mediating role. Therefore, it can
tourism service performance. And it was 0.690 be concluded that tourist hotels in Badulla area
between tourism service performance and would provide greater impulsion towards the
market orientation. It also shows that, there is a tourism service performance with the market
strong positive relationship between tourism orientation mediating by the e-marketing.
service performance and market orientation. According to this study, the fourth research
objective was confirmed by accepting following
As per the findings of Model-I regression; 47.6 hypothesis.
percent of the variability in tourism service
performance of tourist hotels was explained by H4: The e-marketing mediating on the
the market orientation at the 0.05 significant relationship between market orientation and
level. And also market orientation has positive tourism service performance.

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7. LIMITATIONS OF THE STUDY to enter a new development phase with high

competition. Thus, service providers are
This study has considered a single industry competing themselves for each single
approach. It has certain limitations in terms of the percentage of market share. So, service
generalizability of the findings due to the providers are strained to draw and implement
uniqueness of an industry’s environment. If any effective strategies and tactics with the intention
study has considered other industries also the to creating loyal customers. For these
findings of this study can be further confirmed. hotels should strive to identify the needs and
And also, the study has use of sample from only wants of their customers, collect intelligence on
tourist hotels in Badulla area. It was only 156 competitors and their activities, and
managerial level personnel. If any study ensure that all departments are engaged in the
considers biggest sample size more than this, analysis of competitor and customer
findings of this study could be further re- needs to improve on their offerings. Hence, this
confirmed. And, it was limited to the managerial attempt to enhance tourism service performance
level personnel in hotels. Further, each through use of e-marketing and market
statement is measured with Likert’s scale (1-5) in orientation.
this study. However, if any study uses scale
beyond 5, findings of this study could be further COMPETING INTERESTS
reconfirmed.
Authors have declared that no competing
8. FUTURE RESEARCH DIRECTION interests exist.

Future researchers can be taken into actions to REFERENCES

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limitation of this study. Hence, the following 1. Lynch P. Female Microentrepreneurs in
suggestions are suggested by researcher to the Host Family Sector: Key Motivations
improve future research. Future researchers can and Socio-Economic Variables. Hospitality
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