The impacts of marketing and operations capabilities on financial performance in the UK retail sector: A resource-based perspective

Drawing upon the resource-based view (RBV) of the firm, this study investigates the relationships among marketing capability, operations capability, and financial performance. Using archival data of 186 retail firms in the UK, we find that that marketing capability has a significant impact on operations capability, and that operations capability is significantly and positively related to retail efficiency. The results also suggest that operations capability fully mediates the relationship between marketing capability and financial performance. The findings of this study provide practical insights for practicing managers to consider when developing functional capabilities in order to achieve superior financial performance.     

The impact of information technology on supply chain capabilities and firm performance: A resource-based view

Organizations increasingly rely on information technology (IT) to improve the supply chain process. Yet, past evidence suggests that the investment in IT per se does not guarantee enhanced organizational performance. Drawing from the resource-based view, this study proposes that IT-enabled supply chain capabilities are firm-specific, and hard-to-copy across organizations. These capabilities can serve as a catalyst in transforming IT-related resources into higher value for a firm. Based on data collected from surveying supply chain and logistics managers in various industries, the present study sheds light on these issues. The findings provide a new perspective in evaluating IT investment in the supply chain process.     

The resource-based view of the firm: Ten years after

The article reflects on the diffusion of the ‘resource-based view of the firm’ into academic and practitioner thought. The contributions of many people are noted. In closing, I offer some speculations about the future use of these ideas.     

Broadening the scope of the resource-based view in marketing: The contingency role of institutional factors

Drawing on the resource-based view (RBV) of the firm and institutional theory, the authors propose and test an integrated model in an industrial marketing context that expands the boundaries of the RBV to incorporate institutional factors pertaining to societal and political issues. The rationale for taking such an integrated approach stems from the knowledge that firm performance can be explained better by incorporating not only the inability of managers to take particular actions but also their reluctance or unwillingness to pursue those behaviors. The authors develop an integrated model that tests (1) the direct effect of marketing institutional factors on the development of marketing RBV factors and (2) the moderating role of marketing institutional factors on the performance effect of marketing RBV factors. The empirical results indicate general support for the hypotheses, and this research provides several implications for broadening the scope of the RBV in marketing by underscoring how fit between marketing resources and the context in which those resources are deployed affects firm performance.     

Factors influencing the relative importance of marketing strategy creativity and marketing strategy implementation effectiveness

It seems logical that performance is maximized when a business produces a creative marketing strategy and achieves marketing strategy implementation effectiveness. However, cultural tensions and resource competition may make it difficult, or impossible, to achieve both. Contingency theory suggests that market and/or firm level influences may exist that make one or the other more important. Thus, it is important for researchers to investigate those conditions so that we can provide managers with guidance regarding where to allocate their resources. The study reported in this article assesses the impact that environmental conditions and business unit strategy have on the relative importance of marketing strategy creativity and marketing strategy implementation effectiveness. We discuss implications for managers and scholars.     

Structure and process of diversification,compensation strategy,and firm performance

This study tests six hypotheses on the extent to which a match between compensation and diversification strategies affects firm performance. Using both archival and survey data, results generally support the notion that a firm's compensation strategies make a greater contribution to firm performance if these are attuned to extent and process of corporate diversification. The paper concludes with a set of recommendations for future research on compensation-diversification strategy relations and their interactive effect on firm performance.     

Taking operations strategy into practice: Developing a process for defining priorities and performance measures

Enterprises’ operations systems and environments, characterized by their complexity and dynamics, are challenging operations strategic management models. The study presented in this paper develops a process to integrate operations strategy content to operations performance measurement system design. Essentially, the developed methodology is based on Process Approach (Cambridge Approach) technique that systematizes procedures for generating a performance measures set coherent to operations strategy objectives and also produces a consistent strategy implementation process. To illustrate the development and the application of the proposed design methodology, findings of two case studies related to telecom engineering services companies are used. Results are discussed focusing on testing the proposed methodology in terms of its feasibility, usability, and utility. A refined process, organized in phases, steps, and procedures, is the final result of the presented study.     

Practices and functions of customer reference marketing — Leveraging customer references as marketing assets

This multiple-case study focuses on the practices and functions of customer reference marketing and on the ways through which customer references can be deployed as marketing assets. Analysis of 38 interviews with managers in four case companies suggests that customer references can be leveraged externally as marketing assets to (1) gain status-transfer effects from reputable customers, (2) signal passing a selection process, (3) concretize and demonstrate complex solutions, and (4) provide indirect evidence of experience, previous performance, technological functionality, and delivered customer value. Customer references can also be leveraged internally to (1) facilitate organizational learning, (2) advance offering development, (3) motivate personnel, and (4) develop understanding of customer needs, internal competencies, and delivered customer value. By identifying the practices and functions related to customer reference marketing, the paper deepens understanding of this highly relevant but relatively under-researched phenomenon and contributes to the literature on customer-based marketing assets.     

Technological capabilities and firm performance: The case of small manufacturing firms in Japan

The purpose of this study is to investigate the relationship between technological capabilities and firm performance. We divide technological capabilities into two types—refinement capability, which involves the improvement of the existing asset portfolio, and reconfiguration capability, which involves the restructuring of the asset portfolio through the integration of new assets. The results of an analysis of a sample of 302 small and medium-sized manufacturing firms in Japan suggest that refinement capability relates more positively to operational efficiency than does reconfiguration capability, and that reconfiguration capability relates more positively to strategic performance than does refinement capability. The results also suggest that firms with superior refinement capability tend to possess superior reconfiguration capability. Our findings show that both external and internal factors, such as technological volatility, inter-firm collaboration, and firm age and size, are significantly associated with the level of refinement and reconfiguration capabilities possessed by a firm.

Board structure and firm capability: An environment-embedded relationship between board diversity and marketing capability

The role of the firm’s top governance team, the board, is largely missing in the capability literature. This paper takes the first step to link board diversity, one of the most critical traits of the board, to marketing capability. Further, this relationship is embedded into a contingency-based model involving a set of environmental factors, munificence, turbulence, and competition intensity. This model illustrates how the internal top governance traits and external factors may jointly and dynamically affect firm competency. The empirical results show that board diversity significantly increases marketing capability. This effect is stronger when a firm faces unfriendly market situations characterized by low munificence, high turbulence, and intensified competition. This study generates meaningful theoretical implications for marketing capability-building of business firms, especially in the business-to-business (B2B) settings in which reciprocal organizational engagements are more emphasized. It also advances firm governance theories and business environment studies, and provides useful guidelines for managerial practices.     

Assessing resources, logistics service capabilities, innovation capabilities and the performance of container shipping services in Taiwan

The purpose of this study is to examine the relationships between resource, logistics service capability, innovation capability and the performance of Taiwanese container shipping service firms based on the resource-based view (RBV). A structural equation modeling (SEM) approach was employed to test the research hypotheses. Results indicated that resource had a significant positive effect on logistics service capabilities and innovation capabilities. In addition, the findings indicated that logistics service capability had a positive effect on the performance of container shipping service firms. However, resource and innovation capability were not found to have significantly positive effects on firms’ performance. Theoretical and managerial implications of the research findings for container shipping service firms are discussed.     

The impact of diversification strategy on risk-return performance

This study examines the impact of diversification strategy on risk and return in diversified firms. Following an assessment of previous research on strategic risk, relationships between risk, return, and diversification strategy are hypothesized. Regression analysis shows that differences in risk-return performance among diversified firms are more closely associated with structural factors associated with markets and businesses than with the particular diversification strategy chosen. Returns also influence the choice of diversification strategles which, in turn, do not get rewarded with higher profits. A curvilinear risk-return relationship is also observed which is consistent with previous theoretical suggestions. Implications for the strategic management of risk are then drawn.     

The impact of third-party logistics providers' capabilities on exporters' performance

Third-party logistics (3PL) services have experienced unprecedented growth. However, we are not aware of any study that explores the relationships among logistics outsourcing, competitive advantage, and business performance. We study the mediating role of logistics outsourcing as a strategy to develop firms' capabilities in the strategy-performance relationship. Drawing on the resource-based view (RBV) of the firm, we develop a research model grounded in the outsourcing-competitive advantage-performance paradigm. We apply structural equation modeling to empirically test the model using data collected from 150 exporters in Hong Kong and the Pearl River Delta region of China. The results show that there are positive relationships among exporters' strategic orientation towards third-party logistics (3PL) providers, 3PL providers' basic and augmented capabilities, exporters' competitive advantage, and exporters' export performance. We also find that 3PL providers' augmented capabilities and exporters' competitive advantage are strong mediators, supporting the theorized model underpinned by RBV.     

A process-oriented perspective on customer relationship management and organizational performance: An empirical investigation

Research on the CRM-performance link has been fragmented due to various perspectives on CRM. This study, considering different concepts of CRM, proposes a process-oriented framework for examining the relationship among CRM resources, CRM process capabilities, and organizational performance. Based on the resource-based view (RBV) of the firm, CRM resources are classified as “technological CRM resources” and “infrastructural CRM resources”. Data from 77 Iranian Internet service provider firms were gathered in a field survey. The empirical work indicates that the measured constructs demonstrate key psychometric properties including reliability and validity. The results reveal that CRM processes are more affected by infrastructural CRM resources rather than technological CRM resources. Moreover, the findings indicate that firms with improved CRM process capabilities enjoy better organizational performance.     

Understanding the links between technological opportunism, marketing emphasis and firm performance: Implications for B2B

The capability of firms to sense and respond to changes in technologies, called technological opportunism, is of growing importance to managers as a source of competitive advantage. However, exactly how technological opportunism impacts firm performance is still not clearly understood. Furthermore, the role of marketing in this relationship, if any, has yet to be examined. Understanding this relationship is critical for marketing managers not only for determining strategic investments of resources but also for demonstrating marketing return on activities. This paper explores the links between technological opportunism and firm performance. The results show that technological opportunism has a strong positive impact on key measures of performance such as firm sales, profits and market value. Importantly, marketing emphasis is the mechanism through which the technological opportunism-performance relationship is achieved. Finally, the impact of marketing emphasis on B2B firms is different than that for B2C firms, highlighting the importance of these activities for B2B marketing managers.     

The contingent value of marketing strategy innovativeness for product development performance in Chinese new technology ventures

This study extends research on entrepreneurial behavior by investigating the relationship between the marketing strategy innovativeness (MSI) and new product performance in technology-based new ventures in China. Specifically, premised on contingent resource-based view we argue that MSI is a firm capability that must be bundled with external managerial relationships and be deployed in the appropriate environment to ensure its success. We found that the team's extra industry relationships and market dynamism enhanced the impact of MSI on new product performance. In contrast, top management team's intraindustry relationships, financial relationships, and technology dynamism hindered the impact of MSI on new product performance.     

Infusing flexibility into business-to-business firms: A contingency theory and resource-based view perspective and practical implications

Two questions motivate this research. What conditions foster flexibility and how might business-to-business firms infuse flexibility throughout their organizations? A synthesis of the strategic management, marketing, and new product development literature was undertaken, which provided an updated interdisciplinary focus. Contingency theory and the resource-based view perspective were utilized to enhance our knowledge and emphasize the importance of flexibility and organizational performance. Superior intra- and inter-firm flexibility are proposed to influence business-to-business marketplace success.     

The multi-channel challenge: A dynamic capability approach

The maturing of e-commerce, the diffusion of call centres into the B2B space and purchaser demands on price and service are leading to rapid change in the route to market in many B2B sectors, with shifting combinations of channels being offered to the customer in the search for advantage. In this situation managers can no longer rely on the channel resources that they have assembled to provide their extant competitive position. Instead they must be able to combine resources in new ways, gain additional resources and dispose of superfluous resources, and to do this repeatedly and rapidly if they are to compete successfully. The term ‘dynamic capabilities’ has emerged in the strategic management literature for these activities. Using four case studies and the analytic induction approach to data analysis, we identify seven dynamic capabilities for channel transformation.     

Customer information resources advantage,marketing strategy and business performance: A market resources based view

Chief among a firm's market-based resources are its relational resources such as brand equity, customer equity and channel equity that result from its interactions with customers and marketing intermediaries, and intellectual resources – accumulated knowledge about entities in the market environment such as consumers, end use and intermediate customers and competitors. In the evolving digital data rich market environment, customer-based resources, a subset of a firm's market-based resources, are becoming increasingly important as potential sources of competitive advantage. Customer information assets refer to information of economic value about customers owned by a firm. Information analysis capabilities are complex bundles of skills and knowledge embedded in a firm's organizational processes employed to generate customer knowledge from customer information assets. Customer insights or knowledge is a firm's extent of understanding of customers that informs its business decisions. Building on the resource-based, capabilities-based and knowledge-based views of the firm, resource advantage theory of competition, and the outside-in and inside-out approaches to strategy, this article presents a market resources-based view of strategy, competitive advantage and performance. The article presents a framework delineating the relationship between a firm's customer information based resources, marketing strategy and performance, and discusses implications for theory, research and practice.