Abstract
1- Introduction
2- Theoretical background and hypothesis development
3- Study 1: adaptive marketing capabilities scale development
4- Study 2: comparing the effects of different marketing capabilities
5- Discussion
References
Abstract
This research compares three key types of marketing capabilities (static, dynamic, and adaptive capabilities) with one another to examine empirically the relative contribution of each capability type to firm performance under different market conditions. Through two empirical studies with business-to-business managers, this study first develops a scale of adaptive marketing capabilities and then investigates the relationships between all three types of marketing capabilities and firm performance. The results show that adaptive marketing capabilities have the greatest impact on market performance. In addition, while environmental turbulence obliterates the contribution of static marketing capabilities (turning the effect negative), it actually strengthens the relationship between adaptive marketing capabilities and firm performance. Finally, dynamic marketing capabilities have a similar impact under low and high environmental turbulence, suggesting the instability in today's marketplace even within relatively “stable” markets. Together, the insights from this research underscore the importance of differentiating among the three types of marketing capabilities and building a firm's capabilities portfolio depending on firm and market conditions.
Introduction
Since the late 1980s, strategic issues related to the resource-based view and enterprise capabilities have attracted increasing attention in the marketing strategy literature (Day, 1994, 2011, 2014; Gulati, 2010). Previous research consistently suggests that marketing capabilities can enhance firms' ability to effectively configure and deploy resources, help build a sustainable competitive advantage, and contribute to firms' revenue and profit growth in the long run (Day, 1994, 2011, 2014; Fang & Zou, 2009; Kotabe, Srinivasan, & Aulakh, 2002; Morgan, Slotegraaf, & Vorhies, 2009; Wang, Klein, & Jiang, 2007; Wiles, Morgan, & Rego, 2012). Consequently, determining which marketing capabilities to develop and how to foster these capabilities has become an increasingly important issue in increasingly competitive marketplaces. To answer the question of which marketing capabilities to build, Day (2011) identified three types of marketing capabilities: (1) static marketing capabilities (static MC), or the capabilities of using internal resources to satisfy market demand; (2) dynamic marketing capabilities (dynamic MC), or the capabilities of adjusting own marketing capabilities to the changing market environment; and (3) adaptive marketing capabilities (adaptive MC), or the capabilities of engaging in vigilant market learning, adaptive market experimentation, and open marketing through relationships forged with partners. Although Day (2011) recognized the importance of each of these capabilities, limited empirical research has established the true performance impact of each, especially with regard to adaptive MC. That is, little is known about the relative contribution of the three types of marketing capabilities to firm performance. Moreover, the boundary conditions under which one type of marketing capability may be more important than another remain unclear.