IDEAS home Printed from https://ideas.repec.org/a/sae/ausman/v25y2000i2p145-171.html

The Capabilities and Perfor Mance Advantages of Market†Driven Firms: An Empirical Investigation

Author

Listed:
  • Douglas W. Vorhies

    (Department of Marketing, Illinois State University, College of Business Administration, Campus Box 5590, Normal, IL 61790.)

  • Michael Harker

    (Department of Marketing, University of the Sunshine Coast, Maroochydore, QLD 4558. Email: mharker@usc.edu.au)

Abstract

Although progress has been made in understanding the development of businesses competencies from a theoretical perspective, relatively few empirical studies have addressed the capabilities needed to become market†driven and the perfor Mance advantages accruing to firms possessing these capabilities. One of the barriers faced has been in defining what is meant by the term ‘market†driven’. This study develops a multi†dimensional measure useful for assessing the degree to which a firm is market†driven. Evidence is presented in this study that strategically focused market†driven business units developed higher levels of capabilities than their less market†driven rivals and significantly outperfor Med these rival business units on four measures of organisational perfor Mance.

Suggested Citation

  • Douglas W. Vorhies & Michael Harker, 2000. "The Capabilities and Perfor Mance Advantages of Market†Driven Firms: An Empirical Investigation," Australian Journal of Management, Australian School of Business, vol. 25(2), pages 145-171, September.
    • Handle: RePEc:sae:ausman:v:25:y:2000:i:2:p:145-171
    DOI: 10.1177/031289620002500203
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/031289620002500203
    Download Restriction: no
    File URL: https://libkey.io/10.1177/031289620002500203?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert M. Grant, 1996. "Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration," Organization Science, INFORMS, vol. 7(4), pages 375-387, August.
    2. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    3. N. Venkatraman, 1989. "Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement," Management Science, INFORMS, vol. 35(8), pages 942-962, August.
    4. Varadarajan, P. Rajan & Clark, Terry, 1994. "Delineating the scope of corporate, business, and marketing strategy," Journal of Business Research, Elsevier, vol. 31(2-3), pages 93-105.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mihaela DIACONU, 2011. "Considerations about the Relationship between the Work Satisfaction – Marketing Capabilities and the Performance in the Performing Services Organizations," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(5), pages 1-5, August.
    2. Paul A. Pavlou & Omar A. El Sawy, 2010. "The “Third Hand”: IT-Enabled Competitive Advantage in Turbulence Through Improvisational Capabilities," Information Systems Research, INFORMS, vol. 21(3), pages 443-471, September.
    3. Sanna Joensuu-Salo & Kirsti Sorama & Anmari Viljamaa & Elina Varamäki, 2018. "Firm Performance among Internationalized SMEs: The Interplay of Market Orientation, Marketing Capability and Digitalization," Administrative Sciences, MDPI, vol. 8(3), pages 1-13, July.
    4. Smirnova, M.M. & Rebiazina, V.A., 2014. "Strategic orientations as a driver of innovations in Russian firms," Working Papers 6386, Graduate School of Management, St. Petersburg State University.
    5. Ahmed, Muhammad Usman & Kristal, Mehmet Murat & Pagell, Mark, 2014. "Impact of operational and marketing capabilities on firm performance: Evidence from economic growth and downturns," International Journal of Production Economics, Elsevier, vol. 154(C), pages 59-71.
    6. Youn Kue Na & Sungmin Kang & Hye Yeon Jeong, 2019. "The Effect of Market Orientation on Performance of Sharing Economy Business: Focusing on Marketing Innovation and Sustainable Competitive Advantage," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    7. Muhammad Shahid Qureshi & Nergis Aziz & Sarfraz A. Mian, 2017. "How marketing capabilities shape entrepreneurial firm’s performance? Evidence from new technology based firms in turkey," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-15, December.
    8. Smirnova, Maria M., 2006. "Managing buyer-seller relationships in industrial markets: A value creation perspective," Working Papers 862, Graduate School of Management, St. Petersburg State University.
    9. Sonia Cruz-Ros & Tomás González Cruz & Carmen Pérez-Cabañero, 2010. "Marketing capabilities, stakeholders’ satisfaction, and performance," Service Business, Springer;Pan-Pacific Business Association, vol. 4(3), pages 209-223, December.
    10. Agustinus A. Toryanto & Hasyim, 2017. "Networking Quality and Trust in Professional Services," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 354-370.
    11. Rajkovič Tanja & Prašnikar Janez, 2009. "Technological, Marketing and Complementary Competencies Driving Innovative Performance of Slovenian Manufacturing Firms," Organizacija, Sciendo, vol. 42(3), pages 77-86, May.
    12. Smirnova, Maria M. & Rebiazina, Vera A. & Frösén, Johanna, 2018. "Customer orientation as a multidimensional construct: Evidence from the Russian markets," Journal of Business Research, Elsevier, vol. 86(C), pages 457-467.
    13. Cruz-Ros, Sonia & Gonzalez-Cruz, Tomas F., 2015. "Service firm capabilities and performance: Contingent analysis of customer contact," Journal of Business Research, Elsevier, vol. 68(7), pages 1612-1621.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefan Schweikl & Robert Obermaier, 2023. "Lost in translation: IT business value research and resource complementarity—an integrative framework, shortcomings and future research directions," Management Review Quarterly, Springer, vol. 73(4), pages 1713-1749, December.
    2. Moaniba, Igam M. & Su, Hsin-Ning & Lee, Pei-Chun, 2019. "On the drivers of innovation: Does the co-evolution of technological diversification and international collaboration matter?," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    3. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.
    4. Bratianu Constantin, 2018. "Intellectual capital research and practice: 7 myths and one golden rule," Management & Marketing, Sciendo, vol. 13(2), pages 859-879, June.
    5. Dedy Dewanto, 2022. "The characteristic of leader innovativeness, a case in Indonesian’s construction industry," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(8), pages 153-165, November.
    6. Christian Felzensztein & George Saridakis & Bochra Idris & Gabriel P. Elizondo, 2022. "Do economic freedom, business experience, and firm size affect internationalization speed? Evidence from small firms in Chile, Colombia, and Peru," Journal of International Entrepreneurship, Springer, vol. 20(1), pages 115-156, March.
    7. Asghar Afshar Jahanshahi & Khaled Nawaser & Alexander Brem, 2019. "The EFFECTS OF CUSTOMER CAPITAL ON CUSTOMER RESPONSE SPEED AND INNOVATIVENESS: THE MEDIATING ROLE OF MARKETING CAPABILITY," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-25, August.
    8. Laura Carraresi & Xhevrie Mamaqi & Luis Miguel Albisu & Alessandro Banterle, 2016. "Can Strategic Capabilities Affect Performance? Application of RBV to Small Food Businesses," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 416-436, July.
    9. Zybura, Jan & Zybura, Nora & Ahrens, Jan-Philipp & Woywode, Michael, 2021. "Innovation in the post-succession phase of family firms: Family CEO successors and leadership constellations as resources," Journal of Family Business Strategy, Elsevier, vol. 12(2).
    10. Muhammad Shahid Qureshi & Nergis Aziz & Sarfraz A. Mian, 2017. "How marketing capabilities shape entrepreneurial firm’s performance? Evidence from new technology based firms in turkey," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-15, December.
    11. Anne Albert-Cromarias & Alexandre Asselineau, 2013. "La Coutellerie Thiernoise : De L'Interet Des Competences Collectives De Territoire," Post-Print hal-02366113, HAL.
    12. Ye Dai & Philip T. Roundy & Jay I. Chok & Fangsheng Ding & Gukdo Byun, 2016. "‘Who Knows What?’ in New Venture Teams: Transactive Memory Systems as a Micro-Foundation of Entrepreneurial Orientation," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1320-1347, December.
    13. Peter Nderitu Githaiga & Josephat Cheboi Yegon & Joyce Kimosop Komen, 2019. "Does the ‘Process’ of Process Capital Matter to Performance? Evidence from Kenyan Commercial Banks," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 10(2), pages 37-46, May.
    14. Arranz, N. & Arroyabe, M.F. & Li, Jun & de Arroyabe, J.C. Fernandez, 2019. "An integrated model of organisational innovation and firm performance: Generation, persistence and complementarity," Journal of Business Research, Elsevier, vol. 105(C), pages 270-282.
    15. Blanka, Christine & Krumay, Barbara & Rueckel, David, 2022. "The interplay of digital transformation and employee competency: A design science approach," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    16. Lim, Lewis K.S., 2013. "Mapping competitive prediction capability: Construct conceptualization and performance payoffs," Journal of Business Research, Elsevier, vol. 66(9), pages 1576-1586.
    17. William B. Edgar & Chris A. Lockwood, 2021. "Corporate Core Competencies’ Essence, Contexts, Discovery, and Future: A Call to Action for Executives and Researchers," SAGE Open, , vol. 11(1_suppl), pages 21582440211, December.
    18. Iyer, Karthik N.S. & Srivastava, Prashant & Srinivasan, Mahesh, 2019. "Performance implications of lean in supply chains: Exploring the role of learning orientation and relational resources," International Journal of Production Economics, Elsevier, vol. 216(C), pages 94-104.
    19. Basaglia, Stefano & Caporarello, Leonardo & Magni, Massimo & Pennarola, Ferdinando, 2010. "IT knowledge integration capability and team performance: The role of team climate," International Journal of Information Management, Elsevier, vol. 30(6), pages 542-551.
    20. Subash Chandra Pattnaik & Rashmita Sahoo, 2021. "High-performance Work Practices, Affective Commitment of Employees and Organizational Performance: A Multi-level Modelling Using 2-1-2 Mediation Analysis," Global Business Review, International Management Institute, vol. 22(6), pages 1594-1609, December.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ausman:v:25:y:2000:i:2:p:145-171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.agsm.edu.au .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.