501 This study investigates the effect of strategic performance measures (SPM) on a firm’s performance in the service sector with and without the mediating effect of market orientation (MO).We analyse 107 data points with structural equation modellingSmartPLS. The results show that to use SPM has a positive effect on a firm’s performance, both directly and indirectly through the mediator of MO (customers).We do not involve MO (competitors), a completely different dimension.In addition, using the Sobel test We find that MO (customers) fully mediates the relationship between SPM and a firm’s performance. This research confirms that a firm does better when it consistently fulfils its customers’ needs and thus gains a sustainable competitive advantage. Previous studies of MO by management accounting researchers did not fully recognise the effect of the mediation. https://jbrmr.com/details&cid=501 https://jbrmr.com/cdn/article_file/2019-07-02-19-09-04-PM.pdf Volume 13 Issue 04 38 2019-07-01 2019-07-02 no Firm performance market orientation service sector strategic performance measures none 593480 142 1 Muhammad Dahlan Accounting Departmen, University of Padjajaran, Indonesia YuliansyahYuliansyah Accounting Department, University of Lampung, Indonesia Maryani Accounting Department, Politeknik Negeri Lampung, Indonesia Abdulrahman I Al Shikhy Graduate School of Business, Universiti Kebangsaan Malaysia, Indonesia