Adoption of e-business, its antecedents and consequences are of importance to marketing theorists and practitioners. Founded on the Resource Based View, this paper hypothesises that reactive and proactive market orientation, conceptualised as capabilities, positively effect e-business adoption and competitive advantage. By applying the partial least squares technique, this paper empirically validates these hypotheses. The findings suggest that the firms intending to adopt e-business should ideally develop capabilities such as reactive market orientation and proactive market orientation. Implications for the vendor firms include segmenting their potential clients based on these capabilities when developing a strategy to market e-business technologies.