This study investigates the role of market orientation and channel relationships in determining firm performance in a distributor group and a supplier group from the perspective of the reference group theory. Data were collected from Chinese retailer buyers or buying managers and supplier salespeople or sales managers. A path model with the mean score of items under each construct was estimated using EQS 6.1. Results suggest that in general, market orientation has a positive effect on relationship building for both distributor and supplier firms. Specifically, for both distributor and suppliers, we find that both market orientation of the focal firm and parnter's market orientation execution perceived by the focal firm have a positive impact on satisfaction. Trust and commitment have a positive impact on long-term orientation. Satisfaction does not have a significant impact on long-term orientation for both types of firms. Distributor market orientation has a significant impact on long-term orientation, whereas supplier market orientation does not. Partner's market orientation execution has a significant impact on long-term orientation in the supplier group, but non-significant in the distributor group. Theoretical and managerial implications are provided. Limitations and future research directions are discussed.
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