NDLI: Capabilities and financial performance: the moderating effect of strategic type

Content Provider	Springer Nature Link
Author	Song, Michael Benedetto, C. Anthony Nason, Robert W.
Copyright Year	2007
Abstract	The Miles–Snow (M–S) strategic typology has continued to receive attention in the academic business press, even though it has been criticized for not making explicit the relationships between strategic type and ultimate profit performance. Using the market orientation and Resource-Based View literature, we develop hypotheses regarding relationships between M–S strategic type and four firm capabilities (technology, information technology, market-linking, and marketing capabilities), relationship between the four capabilities and performance, and the moderating role of M–S strategic type. An empirical test involves multiple data collections from 216 firms. The study results suggest that there are significant relationships between capabilities and performance if one does not account for the moderating role of strategic type. When strategic type is used as a moderating variable, we find that only certain capabilities had significant effects on profitability. For example, technology and information technology capabilities increase financial performance for prospector organizations, while a different set of capabilities (market-linking and marketing) are positively related to financial performance for defender organizations. We discuss how our findings are consistent with the expectations of the Resource-Based View of the firm. We conclude with a discussion of theoretical and managerial implications.
Starting Page	18
Ending Page	34
Page Count	17
File Format	PDF
ISSN	00920703
Journal	Journal of the Academy of Marketing Science
Volume Number	35
Issue Number	1
e-ISSN	15527824
Language	English
Publisher	Kluwer Academic Publishers-Plenum Publishers
Publisher Date	2007-02-08
Publisher Institution	Academy of Marketing Science
Publisher Place	New York
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Market orientation Strategic type Firm capabilities Miles–Snow typology Resource-based view Social Sciences Marketing Business/Management Science
Content Type	Text
Resource Type	Article
Subject	Business and International Management Economics and Econometrics Marketing

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4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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