nach oben

Journal of the Academy of Marketing Science

Erschienen in:

15.02.2016 | Original Empirical Research

Firm capabilities and growth: the moderating role of market conditions

verfasst von: Hui Feng, Neil A. Morgan, Lopo L. Rego

Erschienen in: Journal of the Academy of Marketing Science | Ausgabe 1/2017

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Using a contingency theory lens, this study explores the impact of multiple firm-level capabilities and their interactions on firm growth under different market conditions, using panel data from 612 U.S. public firms across 16 years in 60 industries. Specifically, this study empirically examines how three key firm capabilities (marketing, R&D, operations) interact to impact firms’ revenue growth and profit growth over time, and how external boundary conditions (market munificence and competitive dynamism) influence the interactive growth effects of these capabilities. The results indicate that firms’ R&D (operations) capabilities positively (negatively) influence the effects of marketing capabilities on firm growth and that such effects vary across different market conditions. This study provides insights to researchers and managers regarding how to manage and deploy resources across multiple capabilities simultaneously under different market conditions to drive firm growth.

Vorheriger Artikel The effectiveness of celebrity endorsements: a meta-analysis

Nächster Artikel Shedding light on the CMO revolving door: a study of the antecedents of Chief Marketing Officer turnover

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

We tested our models on revenue and profit levels as well as growth and found a similar pattern of results. However, as the focus of this paper is on firm growth, we do not include these additional results in the paper.

Such reductions in the number of observations are common when several secondary sources are merged. However, excluding these 388 firms due to missing data, etc. does not affect the generalizability of our sample. A two-sample mean difference t-test shows that the missing firms are not statistically different from the remaining sample in terms of total assets, number of employees, firm age, ROA, and sales volume. Moreover, a two-stage Heckman sample selection model further confirms that there is no selection bias in our sample due to missing data.

We used labor costs and capital costs where both data were available; where labor costs were not available, we used capital costs only. The correlations between the measures including/not including labor costs is 0.91.

COGS stands for costs of goods sold. Our findings are robust to alternative profit metric specifications, including versions based on income (COMPUSTAT items NI or IB), earnings (COMPUSTAT items EBIT or EBITDA), and operating income (COMPUSTAT item OIBDP).

In addition to the multiple firm and industry controls included, we also controlled for competitors’ marketing, R&D, and operations capabilities directly, in alternative model specifications. Substantively, the findings remained unchanged. For the purpose of parsimony, we opted to not include these additional estimates with the findings reported.

The estimates we report are also consistent with those observed in less robust “levels-levels” models.

In Fig. 1, dimmed and dashed lines represent non-significant slopes/effects.

Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. London: Sage.

Aldrich, H. (1979). Organizations and environments. NJ: Prentice Hall.

Angulo-Ruiz, F., Donthu, N., Prior, D., & Rialp, J. (2014). The financial contribution of customer-oriented marketing capability. Journal of the Academy of Marketing Science, 42(4), 380–399.CrossRef

Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297.CrossRef

Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51.CrossRef

Bahadir, S. C., Bharadwaj, S. G., & Srivastava, R. K. (2008). Financial value of brands in mergers and acquisitions: is value in the eye of the beholder? Journal of Marketing, 72(6), 49–64.CrossRef

Baltagi, B. (2001). Econometric analysis of panel data. Chichester: John Wiley & Sons.

Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143.CrossRef

Danneels, E. (2011). Trying to become a different type of company: dynamic capability at Smith Corona. Strategic Management Journal, 32(1), 1–31.CrossRef

Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58(4), 37–52.CrossRef

Day, G. S., Reibstein, D., & Shankar, V. (2009). Measuring innovation. Wharton School of Business Working Paper. Philadelphia: University of Pennsylvania.

Dess, G. G., & Beard, D. W. (1984). Dimensions of organizational task environments. Administrative Science Quarterly, 29(1), 52–73.CrossRef

Dixit, A. K., & Pindyck, R. S. (1994). Investment under uncertainty. Princeton: Princeton University Press.

Dutta, S., Narasimhan, O., & Rajiv, S. (1999). Success in high-technology markets: is marketing capability critical? Marketing Science, 18(4), 547–568.CrossRef

Dutta, S., Narasimhan, O. M., & Rajiv, S. (2005). Conceptualizing and measuring capabilities: methodology and empirical application. Strategic Management Journal, 26(3), 277–285.CrossRef

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(1), 1105–1121.CrossRef

Grewal, R., & Slotegraaf, R. J. (2007). Embeddedness of organizational capabilities. Decision Sciences, 38(3), 451–488.CrossRef

Grossack, I. M. (1965). Towards an integration of static and dynamic measures of industry concentration. The Review of Economics and Statistics, 47(3), 301–308.CrossRef

Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., & Winter, S. G. (2007). Dynamic capabilities: Understanding strategic change in organizations. Malden: Wiley-Blackwell.

Katsikeas, C. S., Morgan, N. A., Leonidou, L. C., & Hult, G. T. M. (2016). Assessing performance outcomes in marketing. Journal of Marketing, 80(2), forthcoming.

Keats, B. W., & Hitt, M. A. (1988). A causal model of linkages among environmental dimensions, macro organizational characteristics, and performance. Academy of Management Journal, 31(3), 570–598.CrossRef

King, D. R., Slotegraaf, R. J., & Kesner, I. (2008). Performance implications of firm resource interactions in the acquisition of R&D-intensive firms. Organization Science, 19(2), 327–340.CrossRef

Kozlenkova, I. V., Samaha, S. A., & Palmatier, R. W. (2014). Resource-based theory in marketing. Journal of the Academy of Marketing Science, 42(1), 1–21.CrossRef

Krasnikov, A., & Jayachandran, S. (2008). The relative impact of marketing, research-and-development, and operations capabilities on firm performance. Journal of Marketing, 72(4), 1–11.CrossRef

Krush, M. T., Sohi, R. S., & Saini, A. (2015). Dispersion of marketing capabilities: impact on marketing’s influence and business unit outcomes. Journal of the Academy of Marketing Science, 43(1), 32–51.CrossRef

Kumbhakar, S. C., Wang, H., & Horncastle, A. P. (2015). A practitioner’s guide to stochastic frontier analysis using Stata. New York: Cambridge University Press.CrossRef

Lehmann, D. R., & Winer, R. S. (2009). Editorial: introduction to special issue on marketing and organic growth. International Journal of Research in Marketing, 26(4), 261–262.CrossRef

Levinthal, D. (2000). Organizational capabilities in complex worlds. In G. Dosi, R. Nelson, & S. Winter (Eds.), The nature and dynamics of organizational capabilities (pp. 363–379). Oxford: Oxford University Press.

Luo, X., & Donthu, N. (2006). Marketing’s credibility: a longitudinal investigation of marketing communication productivity and shareholder value. Journal of Marketing, 70(4), 70–91.CrossRef

Meyer, A. D., Tsui, A. S., & Hinings, C. R. (1993). Configurational approaches to organizational analysis. Academy of Management Journal, 36(6), 1175–1195.CrossRef

Mizik, N., & Jacobson, R. (2003). Trading off between value creation and value appropriation: the financial implications of shifts in strategic emphasis. Journal of Marketing, 67(1), 63–76.CrossRef

Mizik, N., & Jacobson, R. (2004). Are physicians “easy marks”? Quantifying the effects of detailing and sampling on new prescriptions. Management Science, 50(12), 1704–1715.CrossRef

Moorman, C., & Slotegraaf, R. J. (1999). The contingency value of complementary capabilities in product development. Journal of Marketing Research, 36(2), 239–257.CrossRef

Morgan, N. A. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), 102–119.CrossRef

Morgan, N. A., Slotegraaf, R. J., & Vorhies, D. W. (2009). Linking marketing capabilities with profit growth. International Journal of Research in Marketing, 26(4), 284–293.CrossRef

Morgan, N. A., Katsikeas, C. S., & Vorhies, D. W. (2012). Export marketing strategy implementation, export marketing capabilities, and export venture performance. Journal of the Academy of Marketing Science, 40(2), 271–289.CrossRef

Narasimhan, O., Rajiv, S., & Dutta, S. (2006). Absorptive capacity in high-technology markets: the competitive advantage of the haves. Marketing Science, 25(5), 510–524.CrossRef

Newbert, S. L. (2007). Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research. Strategic Management Journal, 28(2), 121–146.CrossRef

Penrose, E. T. (1959). The theory of the growth of the firm. Oxford: Oxford University Press.

Piercy, N. (2007). Framing the problematic relationship between the marketing and operations functions. Journal of Strategic Marketing, 15(2–3), 185–207.CrossRef

Porter, M. E. (1980). Competitive strategy. New York: The Free Press.

Porter, M. E. (1985). The competitive advantage: Creating and sustaining superior performance. New York: The Free Press.

Ramaswami, S. N., Srivastava, R. K., & Bhargava, M. (2009). Market-based capabilities and financial performance of firms: insights into marketing’s contribution to firm value. Journal of the Academy of Marketing Science, 37(2), 97–116.CrossRef

Roodman, D. (2009). How to do xtabond2: an introduction to difference and system GMM in Stata. Stata Journal, 9(1), 86–136.

Ruekert, R. W., Walker, O. C., Jr., & Roering, K. J. (1985). The organization of marketing activities: a contingency theory of structure and performance. Journal of Marketing, 49(1), 13–25.CrossRef

Song, M., Droge, C., Hanvanich, S., & Calantone, R. (2005). Marketing and technology resource complementarity: an analysis of their interaction effect in two environmental contexts. Strategic Management Journal, 26(3), 259–276.CrossRef

Taylor, A., & Helfat, C. E. (2009). Organizational linkages for surviving technological change: complementary assets, middle management, and ambidexterity. Organization Science, 20(4), 718–739.CrossRef

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.CrossRef

Tirole, J. (1988). The theory of industrial organization. Cambridge: MIT Press.

Tuli, K. R., Bharadwaj, S. G., & Kohli, A. K. (2010). Ties that bind: the impact of multiple types of ties with a customer on sales growth and sales volatility. Journal of Marketing Research, 47(1), 36–50.CrossRef

Wooldridge, J. (2006). Introductory econometrics. Mason: Thompson Higher Education.

Titel: Firm capabilities and growth: the moderating role of market conditions
verfasst von: Hui Feng
Neil A. Morgan
Lopo L. Rego
Publikationsdatum: 15.02.2016
Verlag: Springer US
Erschienen in: Journal of the Academy of Marketing Science / Ausgabe 1/2017
Print ISSN: 0092-0703
Elektronische ISSN: 1552-7824
DOI: https://doi.org/10.1007/s11747-016-0472-y

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 1/2017

Phenomena, theory, application, data, and methods all have impact

Musings on interesting and impactful theory and research

Shedding light on the CMO revolving door: a study of the antecedents of Chief Marketing Officer turnover

Interesting and impactful research: on phenomena, theory, and writing

Habit slips: when consumers unintentionally resist new products

Innovating for sustainability: a framework for sustainable innovations and a model of sustainable innovations orientation