The impact of dynamic capabilities on operational marketing and technological capabilities: investigating the role of environmental turbulence

In their original scale, Jantunen et al. (2005) counted the number of renewals as the sum of the activities performed, ranging from zero to seven. Because we were interested in a more fine-grained assessment, we used a seven-point interval scale, ranging from “rarely” to “very often.”

For reviews of the increasing use of PLS-SEM in marketing, strategy, and management information systems research, see Hair et al. (2012), Hair et al. (2013), and Ringle et al. (2012).

According to Hair et al. (2012), acceptable R² levels depend on the research context. From a review of similar studies that have investigated capabilities and performance using PLS-SEM (e.g., Lew and Sinkovics 2013; Sarkar et al. 2001), we concluded that our coefficients of determination were acceptable.

Although not the focus of this study, we found that technological capabilities related more positively to performance in stable competitive environments than in turbulent ones. This finding may sound counterintuitive, and previous research is inconclusive too. Song et al. (2005) argue that technological capabilities enable firms to respond to, leverage, and benefit from turbulence. However, knowledge embedded in technological capabilities may lead to inertia in turbulent environments (Lieberman and Montgomery 1988), rendering them inflexible. Turbulence thus might either improve or harm existing technological capabilities. An alternative explanation holds that stable environments reward exploitation. Technological capabilities often rest on established business processes, and firms are more likely to automate appropriate business processes in stable environments. Previous research investigates the moderating role of market and technological turbulence in the relationship between marketing and technological capabilities and performance (e.g., Song et al. 2005); however, no research has investigated the effect of competitive turbulence in these relationships. Thus, further research is needed to clarify the performance implications of technological capabilities in conditions of high environmental turbulence.