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In today’s competitive business environment, family and non-family small and medium enterprises (SMEs) strive to survive despite many challenges. Market knowledge and marketing efforts are crucial for them to sustain and enhance business with limited resources. In this paper, we examined three constructs (i) market orientation, (ii) marketing capabilities and (iii) marketing practices impact on the SMEs’ service sector performance. The interaction effect of ownership type (family and non-family firms) was also observed in the model. Data was collected from 240 SMEs in three major metropolitan cities. This study found positive relationships of each construct (market orientation, (ii) marketing capabilities and (iii) marketing practices) on firm performance as hypothesised. The interaction effect of ownership type i.e. family and non-family, evident on marketing capabilities and SMEs’ performance. Non-family businesses are open for adopting new ideas and personnel into decision making. Family firms should be more adaptable to compete with non-family firms. The managerial and theoretical implications discussed in family and non-family firms’ perspective.

Entrepreneurial orientation (EO) has been widely studied in the US context, but its examination in emerging regions such as China has been very limited. In this study, we investigate the EO-performance relationship in China. Results based on a sample of 166 firms in Northern China confirm the positive influence of EO on performance. More importantly, the EO-performance relationship is more positive among state-owned enterprises (SOEs) than among privately-owned enterprises (POEs). Research and practical implications for EO in China are discussed.