Is more capability always beneficial for firm performance? Market orientation, core business process capabilities, and business environment

Matti Jaakkola, Johanna Frösén, Henrikki Tikkanen, Jaakko Aspara, Antti Vassinen, Petri Parvinen

Research output: Contribution to journalArticlepeer-review

Abstract

This study examines the role of capabilities in core marketing-related business processes–product development management (PDM), supply chain management (SCM) and customer relationship management (CRM)–in translating a firm’s market orientation (MO) into firm performance. The study is the first to examine the interplay of all three business process capabilities simultaneously, while investigating how environmental conditions moderate their performance effects. A moderated mediation analysis of 468 product-focused firms finds that PDM and CRM process capabilities play important mediating roles, whereas SCM process capability does not mediate the relationship between MO and performance. However, the relative importance of the capabilities as mediators varies along the degree of environmental turbulence, and under certain conditions, an increase in the level of business process capability may even turn detrimental.
Original languageEnglish
Pages (from-to)1359-1385
Number of pages27
JournalJournal of Marketing Management
Volume32
Issue number13-14
Early online date13 Jun 2016
DOIs
Publication statusE-pub ahead of print - 13 Jun 2016

Bibliographical note

This is an Accepted Manuscript of an article published by Taylor & Francis Group in Journal of Marketing Management on 13 Jun 2016, available online at: http://www.tandfonline.com/10.1080/0267257X.2016.1181098.

Fingerprint Dive into the research topics of 'Is more capability always beneficial for firm performance? Market orientation, core business process capabilities, and business environment'. Together they form a unique fingerprint.

Cite this