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

Is more capability always beneficial for firm performance? Market orientation, core business process capabilities, and business environment
Is more capability always beneficial for firm performance? Market orientation, core business process capabilities, and business environment
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.
business process capability, firm performance, market orientation, environmental turbulence, moderated mediation analysis
0019-8501
1-50
Jaakkola, Matti
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Frösén, Johanna
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Tikkanen, Henrikki
d9952364-929c-4861-b2a3-0348aae4fba4
Aspara, Jaakko
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Vassinen, Antti
c4a9d27b-0d14-42e3-9ebc-8dc0582b1b35
Parvinen, Petri
051257d9-491c-491b-8d75-04dc58ef7d44
Jaakkola, Matti
8b73957d-296c-4416-88fd-0cb4b0ddcb10
Frösén, Johanna
bebefa10-2441-42eb-a2ba-9c792cb86443
Tikkanen, Henrikki
d9952364-929c-4861-b2a3-0348aae4fba4
Aspara, Jaakko
2f29449a-c4ce-44db-94be-c9214a750bc1
Vassinen, Antti
c4a9d27b-0d14-42e3-9ebc-8dc0582b1b35
Parvinen, Petri
051257d9-491c-491b-8d75-04dc58ef7d44

Jaakkola, Matti, Frösén, Johanna, Tikkanen, Henrikki, Aspara, Jaakko, Vassinen, Antti and Parvinen, Petri (2016) Is more capability always beneficial for firm performance? Market orientation, core business process capabilities, and business environment. Journal of Marketing Management, 1-50. (doi:10.1080/0267257X.2016.1181098).

Record type: Article

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.

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More information

Accepted/In Press date: 4 April 2016
e-pub ahead of print date: 13 June 2016
Published date: 13 June 2016
Keywords: business process capability, firm performance, market orientation, environmental turbulence, moderated mediation analysis
Organisations: Centre for Digital, Interactive & Data Driven Marketing

Identifiers

Local EPrints ID: 397096
URI: http://eprints.soton.ac.uk/id/eprint/397096
ISSN: 0019-8501
PURE UUID: 47b971f0-2e6b-4e8c-a423-d3611c531160

Catalogue record

Date deposited: 21 Jun 2016 08:53
Last modified: 09 Jan 2022 07:00

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Contributors

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

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