TY - JOUR
T1 - The impact of marketing capability, operations capability and diversification strategy on performance
T2 - A resource-based view
AU - Nath, Prithwiraj
AU - Nachiappan, Subramanian
AU - Ramanathan, Ramakrishnan
PY - 2010/2/1
Y1 - 2010/2/1
N2 - Using resource-based view (RBV) of the firm as a theoretical backdrop; we aim to find out the relative impact of a firm's functional capabilities (namely, marketing and operations) and diversification strategies (product/service and international diversification) on financial performance. We hypothesize that this linkage depends on the firm's relative efficiency to integrate its resource-capabilities-performance triad. Using archival data of 102 UK based logistics companies, we find marketing capability is the key determinant for superior financial performance. This study highlights that a market-driven firm is likely to have better business performance than a firm focusing solely on operational capabilities. Also, firms are better off when they focus on a narrow portfolio of products/services for the clients and concentrate on a diverse geographical market. Our findings provide a new perspective to model a firm's functional capabilities and diversification strategy on its financial performance and offer a benchmarking tool to improve resource allocation decisions. Crown
AB - Using resource-based view (RBV) of the firm as a theoretical backdrop; we aim to find out the relative impact of a firm's functional capabilities (namely, marketing and operations) and diversification strategies (product/service and international diversification) on financial performance. We hypothesize that this linkage depends on the firm's relative efficiency to integrate its resource-capabilities-performance triad. Using archival data of 102 UK based logistics companies, we find marketing capability is the key determinant for superior financial performance. This study highlights that a market-driven firm is likely to have better business performance than a firm focusing solely on operational capabilities. Also, firms are better off when they focus on a narrow portfolio of products/services for the clients and concentrate on a diverse geographical market. Our findings provide a new perspective to model a firm's functional capabilities and diversification strategy on its financial performance and offer a benchmarking tool to improve resource allocation decisions. Crown
KW - Diversification
KW - Efficiency
KW - Marketing capability
KW - Operations capability
KW - Performance
KW - Resource-based view
U2 - 10.1016/j.indmarman.2008.09.001
DO - 10.1016/j.indmarman.2008.09.001
M3 - Article
AN - SCOPUS:75949087171
SN - 0019-8501
VL - 39
SP - 317
EP - 329
JO - Industrial Marketing Management
JF - Industrial Marketing Management
IS - 2
ER -