Firm capabilities are argued to be the source of greatest value and superior organisational performance. A capability that is increasingly being examined in the marketing literature is that of strategic flexibility. However, extant literature is limited in examining the relationship between strategic flexibility, performance and other capabilities. Resource Based View is used as a foundation to argue that strategic flexibility effects performance directly and indirectly through total market orientation. The findings partially support the model, as it provides evidence only for the indirect effects. Consequently, the value of strategic flexibility is that it drives total market orientation, which then leads to superior organisational performance.