Technological Capability, Marketing Capability, and Firm Performance in Turbulent Conditions

Abstract

The manner in which technological capability and marketing capability can be successfully leveraged is an important research issue. Based on the resource-management model, this study aims to answer two research questions: (1) whether technological capability and marketing capability are complementary or supplementary capabilities; and (2) how technological capability and marketing capability can be used appropriately to respond to environmental turbulence. Based on a face-to-face interview survey of 212 Chinese firms, we find that technological capability and marketing capability have synergistic effects. We also find that technological turbulence enhances the performance effect of technological capability, but impedes that of marketing capability; whereas market turbulence advances the performance effect of marketing capability, but impedes that of technological capability. Thus, the appropriate way to leverage technological capability and marketing capability is to integrate them and to deploy technological capability to respond to technological turbulence and marketing capability to respond to market turbulence.

How to Thrive in Turbulent Business Environments: Case Colombia’s Mobile Telephony Industry

“…This review highlights the works written by Emery and Trist, 1965;Terreberry, 1968;Khandwalla 1972;Ansoff, 1979;McCann and Selski, 1984, D'Aveni 1994, and Gueguen, 2001. In recent years, interest in the subject has reappeared, including the following articles: Zhang, Jiang and Zhu, 2015;Wilden and Gudergan, 2014;Tsai and Yang;Liu, 2013;Hung and Chou, 2013;and Su, Peng, Shen and Xiao, 2013.…”

Moderating effect of environmental turbulence on firm’s technological innovation capabilities (TIC) and business performance in the automotive industry in Malaysia: A conceptual framework

“…The major contingencies identified include environment, technology, age and size [57]. Hence, contingency theory considers that firm's capability to respond business environment affects firm performance [22,58]. Business environment has been recognized as one of the contingency elements in strategic management research [59].…”

“…technology turbulence, market turbulence, and competition turbulence [23]. However, this study only focuses two categories of environmental turbulence, which is technological turbulence and market turbulence because both are the most important types of uncertainty [21,22,61].…”

“…When the level of technological turbulence is high, a firm can adapt by utilizing its TIC [22]. Rapid changes in technology quickly make current technology obsolete.…”

“…However, in external circumstance, a firm challenges various environmental turbulence, such as technological turbulence and market turbulence [21]. Both technological turbulence and market turbulence are crucial dimensions of environmental turbulence [22,23]. Along with limited resources, firms need to be more adaptable to respond environmental turbulence [24,25].…”