Abstract
Marketing and technological capabilities are primary drivers of a firm’s performance and thus of central interest to managers. Yet the way in which these two capabilities align with changing environments to secure superior performance remains unclear. Drawing on the dynamic capability view and data from a survey of 228 firms, this study proposes a model of how frequent dynamic capability utilization, assessed through its underlying processes of sensing and reconfiguring, relates to marketing and technological capabilities, as well as how market, technological, and competitor turbulence might affect these relationships. The results show that frequent sensing and reconfiguring have stronger positive effects in environments characterized by high competitor turbulence; however, frequent sensing can have negative relationships with marketing and technological capabilities in stable environments. Furthermore, marketing capabilities are positively associated with firm performance in highly competitive environments, whereas technological capabilities enhance performance in stable competitive environments.
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Notes
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.”
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.
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We would like to thank the four anonymous reviewers as well as the editor for their constructive comments. We particularly acknowledge Ian Lings, Christine Eckert, and Christian Ringle for their valuable and constructive comments on earlier drafts of this paper. We would also like to acknowledge the support of the Australian Research Council (LP0882944).
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Wilden, R., Gudergan, S.P. The impact of dynamic capabilities on operational marketing and technological capabilities: investigating the role of environmental turbulence. J. of the Acad. Mark. Sci. 43, 181–199 (2015). https://doi.org/10.1007/s11747-014-0380-y
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DOI: https://doi.org/10.1007/s11747-014-0380-y